As we enter the beginning of hurricane season this year it’s time to consider the ramifications of weather conditions and how they can be a major cause of home damage in the near future.
All hurricanes are sure to result in stories by homeowners who discovered that their coverage do not meet their expectations and that they need to shell out huge amounts of money for repair. This is why you need to review your insurance policy and read the fine print carefully.
What You Want to Avoid
When reviewing your homeowner’s insurance policy, make sure not to make these mistakes and make sure you correct them as you go.
Mistake #1: Not Enough Insurance for Rebuilding Your House
Not having enough insurance to include reconstruction expenses if your house gets wrecked is a big mistake according to experts. Studies claim that over 50 percent of homes in the U.S. are underinsured.This is due to homeowners opting for insurance that would cover their mortgage.
Covering your mortgage is fine, but it doesn’t cover the whole value of the house nor does it consider its appreciated value. There are also those homeowners who get insurance worth their homes current value. However, this does not always equate to the cost that you need to rebuild your house.
How to Avoid It?
When choosing an insurance policy, make sure to include future events such as major damages in the house and reconstruction as well as the labors and materials needed for it. You may also opt for an extended replacement coverage where the company pays you more than 100 percent of the policy value for home reconstruction.
Mistake #2: Not Making Sure that You Have Flood Insurance
This is not a standard coverage that is part of your policy. Homeowners who live in coastal areas like most of our clients or those that are near lakes and other bodies of water should definitely get this. However, even those who do not live near the water may also opt for this coverage as they can also suffer from severe flooding during storms.
Flood coverage is easy to get and is accepted by most insurance companies today. The price depends on your area and its risks of flooding.
How to Avoid it?
Ask your agent if they can give you flood insurance along with your current policy or give our agency a call anytime.
Mistake #3: Assuming That You Have a Flat Rate Deductible
You may think that you only need to shell out a few bucks along with your insurance coverage to repair your home due to damages caused by natural disasters. This is a mistake that most homeowners make.
When it comes to natural disasters, your policy’s deductible usually turns out to be a fraction of your whole coverage. This means that it can range from 1 to 15 percent of the total value of your policy depending on the incident.
For example, if you have a policy with a $200,000 coverage and your house gets damaged because of an earthquake, you could be slapped with a $20,000 deductible upon filing your claim.
How to Avoid It?
Make sure to ask your insurance agent if their company has different deductibles. If that’s the case, ask for a policy with a flat-rate deductible and don’t settle for anything else.
Mistake #4: Not having Sewer Back-Up or Mold Coverage
Most home insurance policies do not have this kind of coverage, or if they do, they have claim limitations.
How to Avoid It?
Ask your insurance company about these extra coverages as it is not very expensive and is worth having. If your house is in a humid place, chances are you need mold protection more than ever. When it comes to sewer back-up, you can never go wrong in trying to prevent sewer spillage in your homes during heavy rains.
At the Brad Spurgeon Insurance Agency, we take pride in making sure our clients are well protected at prices they can afford. To learn more about how we can help you please contact our agency at (409) 945-4746 or Click Here to request a free quote.
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