Homeowners Insurance Needs Updating
April 25, 2008
If you own a home, you know the importance of having adequate homeowner’s insurance. What might surprise you is that a recent survey suggests that less then five percent of US homeowners have updated their policies to reflect changes that can adverse affect them.
The survey was conducted about six months ago by the Homeowners Consumer Center and the results were surprising to both industry experts and homeowners alike. Some areas of homeowner’s insurance were particularly striking.
The survey concluded that many homes that are in flood areas or in hurricane areas still do not have adequate insurance for those events. In most parts of the country, flood insurance is not a normal part of the homeowner’s policy and must be purchased separately.
The same is true for hurricane insurance. Many homeowners simply believe that they have this coverage, when, in fact, they do not.
Another conclusion from the study suggests that many homeowners do not have loss of use riders in their policies. A loss of use rider is used when the property cannot be used or lived in due to events such as fire, floods, etc.
Loss of use can be invaluable as it helps to pay rental costs for the owner and family when they must reside somewhere else for a time while repairs are being made to the home.
Lastly, it was found that many homeowners have not updated their policies during the last two years. If you fall into that category, you may want to have an agent come out and re-evaluate your property as well as make an updated list of your personal items such as jewelry, electronics, etc. that may not be on your current policy.