Are You Sure You’re Insured?

Homeowners buy insurance to protect against disaster. But when disaster strikes, your insurer might not live up to your expectations, especially if you have a large claim. These days, homeowners insurance covers less and costs more.

Insurers often use contract language to avoid paying claims. For example, got hail coverage? Great. But if your roof is more than 10 or 15 years old, hail damage might be excluded. Even if you have a standard homeowners policy that covers an overflowing bathtub or burst or frozen water pipe plus flood insurance, you’re still out of luck if your sump pump can’t handle a monster downpour or if the sewer backs up —unless you pay $40 to $50 a year more for a specific endorsement covering that.

You might not even be aware of the erosion in coverage until you file a claim. The average homeowner files a claim only once every 6 years, and many policyholders don’t read the disclosures, renewal contracts, and updates that insurers send them.

Outdated assumptions about your coverage can cost you a bundle. Don’t let that happen to you, call your insurance provider today before damage strikes.

Buddy suggest home owners should do the following to decrease their insurance costs!

1. Review Your Policy Limits Once a Year

You want your policy to cover any major purchases or additions to your home. But you don’t want to spend money for coverage you don’t need. Taking a few hours once a year to go over what is covered in your policy can make a big difference.

2. Make Your Home More Disaster Resistant

You may be able to save on your premiums by adding storm shutters, reinforcing your roof or buying stronger building materials. Update your heating, plumbing and electrical systems to reduce the risk of fire and water damage.