Does Cheap Insurance Cover Your Claim

Insurance companies have come out recently with fancy labels on their products, promoting an illusion of choice for you to mix and match your needs in your homeowner’s insurance. We won’t mention these name brand insurance companies, but you know who they are. The insurance companies are trying to make it trendy to customize your insurance needs, when in fact, they are deceiving you with options to REDUCE your coverage.

Sure, saving a dollar here and there is great for your pocket, right? Unfortunately, you won’t know you’ve just been screwed until you’ve suffered damages to your home. The devastating news comes only after you have to file a claim and you are denied.

Take a look at this disaster in the picture on the left. The homeowner’s sump pump failed but the agent did not mention to the homeowner that the sump pump endorsement was not included with the policy. For a mere $100 additional cost annually, the damage could have been covered, saving the homeowner thousands of dollars in out-of-pocket costs.

Are the missing provisions in the policy the fault of the homeowner? The truth is, most homeowners don’t know what they have purchased when they buy their homeowners policies. The legalese is just too much for the average person; even insurance agents selling the policies may have trouble understanding the language.

Homeowners are told that HO3 policies are all the same. However, homeowners are NOT told that endorsements added to the policy to save the client money actually add exclusions to the policy. These exclusions are perils that will keep the homeowner from being covered in the event of a disaster.

Don’t fall for the dangling carrot of cheap insurance; it will lead you to a home claim disaster. Don’t limit yourself on the amount of coverage that you should get to bring your home back to pre-loss conditions.

Do you know what is covered under your policy? Have you been denied for a claim? Would you like a second look? Contact us for a free policy review to make sure you are covered sufficiently for your home.

Written by Kay Yang
Licensed Public Adjuster, GA
Metro Pubic Adjustment