Monday, October 15, 2012, AM | 3 Comments
Are you thinking that the insurance company is going to size up the needs for you? Do you think they will help when you combat a natural disaster? Well, please do not simply rely on them do take some initiative on your own.
A natural disaster is enough to ruin your life and home. You are in a messed up state and now you realize, that you are not having enough insurance to rebuild your homes.
In America around two-third homeowners are underinsured, survey says that the average is about 18%. This simplifies that someone who is having a house worth $200,000 would find himself or herself short by $36000.
Well, in some state, the rebuilding costs are comparatively higher and the problem can be even more acute. You need to figure out the insurance coverage that helps you in the crucial stage.
Let me give you some instances to give a good grasp on the topic discussed here, where insurance owners were denied insurance coverage during disasters.
During Hurricane Katrina in August 2005, many insurance owners were turned down. Their agents have informed them that they won’t need flood insurance, when, clearly they were in the most needy stage. The courts also ruled that the insurers do not have to pay for damages caused by flooding.
In 2003, San Diego wildfire snatched the property and lives of many homeowners, and they complained that their agents had used a computer survey to underestimate the cost of rebuilding their homes. That survey was popularly called as Quick Quote and it was software package that was bought by the insurers to estimate replacement costs.
Well, what’s the way out to ensure that you are going to have adequate coverage? Here I am going to discuss 5 important ways for the consumers to help them determine whether they are underinsured or not.
Try Out the Unique Web Tools to Estimate Replacement Price
AccuCoverage, it charges an amount of $7.95 and gives you a set of questionnaire that takes around 20 to 30 minutes to complete. Along with that, we have HomeSmartReports that charges you an amount of $6.95 and consumes less time but feeds you with better details.
These two tools will provide you with high and low estimates of what it will be costing to replace your home, plus a standard cost of construction in your area, well you are not going to encounter any kind of customer feature for it.
Better To Compare the Estimate with Your Policy Limits
Do you know where your policy limits are mentioned? Check out the declaration page of your policy. If your agent is unable to explain the clauses, then it is better to search for another option. So start shopping for another insurer.
What Coverage Will You Need During Disaster?
In homeowners insurance the floods and earthquakes are not covered. Say you are staying in an area, which is hurricane prone, and then you may opt for insurance from a special windstorm-coverage pool. If you are prepared for coverage, then it’s OK but other than that having coverage is must.
Check if your insurance supports during the rebuilding period
Check out if your homeowners insurance is able to pay the rent and living expense for the years till your home is rebuilt. You should read the declarations page carefully, if the amount is not going to support for two years, then guys it’s time change your insurer.
Being Cheap Is Not Good For You
Do make the insurer take a notice on the fact that they offer you the best coverage and not those low premiums.
(Remember: The best way to get yourself out of the threat underinsurance is to read the insurance policy carefully from front to back.)
Rebecca Hicks, author of this article works in close association with financial services call center who specializes in maximizing exposure to both large and small businesses. She also has adept knowledge of bespoke campaigns, telemarketing, customer support and various outbound call center services.