What Do You Know About Your Insurance Coverage?
When was the last time you thought about your homeowners policy? The last time it renewed? Longer than that? Many people don’t think about their insurance until they need to use it, and often times that is far too late. Example, we just went out to meet with a homeowner who had a toilet leak in his basement. Over the phone, we told him it would likely be covered by insurance and agreed to meet him at his home. Once we got there, and confirmed the source, the conversation switched over to his insurance. The only person that can report a claim is the actual policy holder – as a professional company, even though we have been hired by you as the insured, we still cannot file a claim on your behalf. Once the claim is filed, though, we will be your advocate with your insurance until the job is completed. The problem in this claim wasn’t coverage issues, but in what the customer had done to his deductible. The homeowner had had some financial difficulties a few years back, so to save money he increased the deductibles on his auto and homeowner policies. Unfortunately, he didn’t realize how high. His deductible for a homeowners claim was 5%… of the total value of his home! Think about what 5% of the value of your home is. Could you afford to pay that if you had damages that required professional attention? If your deductible is so high that you would never use your insurance, what is the point of having it? Some mortgages require it, but like I said before, often times people don’t look more closely at specific details of their policies until they need to use them. If you have 10 minutes tonight, review your policies for insurance. Call your agent. Make sure you are prepared if something were to happen to your home.