Some people only find out that they have holes in their homeowners policy needs when an incident occurs.
They buy their insurance and then they don’t think about it again. That is until they need it. That can be a costly mistake.
Here are some of the top things that you may think that you are covered for but aren’t. If you’re in doubt, the best “policy” is to speak to a qualified insurance broker–as soon as possible.
Flooding
Many insurance companies don’t include coverage for flooding in their basic policies. If you don’t specifically ask for it, your policy may not cover flooding.
To get the coverage you need for flooding, you may need to go through a federal program that is run by FEMA. The National Flood Insurance Program could offer the coverage that you need. This is an especially good idea if your home is in an area where water can collect.
Simultaneous events
There are cases when two events occur at the same time. If you don’t have coverage for one of these events, the insurance company may deny your claim for both events. If there is damage from a flood and damage from high winds, and your policy doesn’t cover the flooding, that could mean you are not covered at all.
High deductibles
To keep premiums down, many companies offer policies with high deductibles but that means you could have to pay a large amount out of pocket if an incident occurs. When your deductible is more than the amount of the claim, you could end up paying for everything.
Policy holes are the most commonly found in the fine print. Unless you like to read fine print and keep up with the changes in the insurance market, your best bet is to speak to an experienced insurance agent, like John B Wright. If you’d like to discuss a homeowners policy that is tailored to your situation and devoid of holes, contact us here.
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