3 Issues Concerning Homeowners Insurance
When taking out or renewing a policy, homeowners often have concerns. “Will it cover enough when I need it?” is a common issue, as are rates and dealing with new changes. The following are some of the top points brought up:
Policy Limits
Homeowners often wonder about how much a policy will cover, or specifically, what the limits will be. With the wrong policy, or a lesser degree of coverage, the maximum payment amount may not be enough for new construction or purchasing new property. In some regions, additionally, the policy won’t offer earthquake or flood coverage, leaving homeowners vulnerable after a natural disaster.
What are your options? First, reassess your policy every year just to make sure the limits continue to fully cover you. If what you have isn’t enough, you may consider increasing coverage, or adding a rider if available.
Increasing Rates
Everyone with insurance worries about rates going up. Should you ever decide to make a claim, even if your request wasn’t for something major, this very well could happen: Some companies tack on surcharges and fees, which then bump up your rates.
What can you do? Aside from shopping around for a new policy, look for discounts, which may apply to any scenario from your occupation to making upgrades.
Your New Home’s Not Insurable
This is a nightmare for any first-time home-buyer: You’ve picked out a property, got an inspection, but then find out you can’t insure it. The lender, as a result, won’t give you a loan, while the agent can’t close your deal. Why does this happen?
- Underwriting: An insurance company may deny coverage for several structural issues:
- Roof leaks and water damage
- Climbing plants
- Damaged railings and stairs
- Empty lots nearby
- Synthetic stucco
- Older electrical systems
- Very recent upgrades
- The home was constructed before 1900
- Safety Hazards: Your property essentially poses too many safety hazards too soon. A large amount of repairs and claims may result in the near future that the insurance company simply doesn’t want to cover. Generally, the property makes you look like a significant risk from the start.
If you’re concerned about any of these issues, bring them to the attention of your agent to see if another policy would better fit your needs. Contact Ion Insurance to learn more.
