Four Errors Every Policy Holder Should Be Aware

​When Mother Nature throws something, no one is exempted.  May you be in the coastal areas or inland. Before the next big storm hits, be prepared. After all, it is better to be ready than sorry. Take time to review your policy to make sure you are protected enough.

The last thing you want to happen when a claim needs to be made is to have your insurance company tell you that you don’t have coverage. So, it is best to study your policy and make sure you have coverage now rather than later. Here are 4 mistakes you’ll want to avoid:

1.)  Underinsuring Your House
Most homeowners purchase only enough insurance to cover their mortgage, without noticing that the amount of their mortgage might not be enough to rebuild their home should disaster strike. When buying homeowners insurance, be sure to factor in the current cost of labor, the supplies, and even rebuilding the house.
What should you do?
You could ask for assistance from your insurance agent to do some calculations on all the possible rebuilding expenses of the home including the flooring or any other additional special features. Once you’ve figured the total cost to rebuild your house, make sure that you have the “guaranteed replacement cost coverage” and the “extended replacement coverage” for full protection.

2.)  Assuming You Have Flood Insurance
Flood insurance isn’t hard to get. Everyone is welcome as long as you want the coverage. The price depends on your area if it is a risk for flooding, and also the amount that you want. In a low-risk area, you could pay $55 a year for $8,000 of above-ground, contents-only coverage. In a high-risk area, coverage is $8,000 for $250,000 “basement and contents.”
What should you do?
Lots of people make the mistake of believing their homeowners policy includes flood coverage. The truth is that flood coverage is always a separate coverage, and if you are at all concerned about your home flooding, you should look into flood coverage for your home today.

3.)  Thinking You Have One, Flat Deductible
Most policyholders think that they have a fixed amount of out-of-pocket cost. Depending on the case of the catastrophe, the deductible changes its coverage percentage. Let’s say for example, for a flood, it fluctuates from 1-5% and for earthquakes, it is 10-15%.
What should you do?
Review your policy carefully and ask your insurance agent if your policy has different deductibles, depending on the cause of damage. If so, then look for a policy that offers same flat-rate deductible no matter what.

4.)  Believing You’re Covered For Mold Or Sewage Backup
Most homeowners policies do not cover mold or sewage backup.
What should you do?
Mold coverage can be expensive, but paying to have mold professionally removed from your carpet or walls is more expensive. Assess your risk for mold and if you feel there is some risk, have your agent quote some prices of mold coverage for you.

If you want to be more aware on the common mistakes of homeowners, we at Roper Insurance would be more than happy to educate you on this. Just give us a call at (828) 697-6709 or visit our office today. You may get a free quote from us by clicking here.