Read Your Homeowners Insurance Policy
Your home is likely your most valuable asset, and a homeowners insurance policy is an important part of protecting your home and your belongings. If you have a mortgage on your home, your lender probably required you to get an insurance policy that will protect the lender’s interest. Because it provides such broad coverage including both property, liability and workers’ compensation coverage for household employees, most homeowners will obtain a homeowners policy if they expect to occupy the property. Even without a mortgage, homeowners insurance is still your best bet to protect your investment in the home and your exposure to liability.
But do you even know what’s in your policy? Would you know your coverage in the event of an emergency? Are you underinsured? Are you overinsured?
About two-thirds of American homes are underinsured according to estimates by Nationwide Insurance. Some dwellings are underinsured by up to 60 percent. And, CoreLogic, an insurance research firm, says three out of five American homes are underinsured by an average of 20 percent. The homeowner should not wait until it becomes necessary to file a claim to find out whether the homeowner is insured up to the actual cash value of the home or its full replacement cost. If the homeowner, before a loss, determines he or she is underinsured and responsible for paying a lot of money out-of-pocket, the homeowner will contact the insurance agent or broker who obtained the policy on behalf of the insured, to increase the limits to an appropriate amount.
Despite how important it is, many insureds do not take the time to properly review the homeowners policy. To make certain that a homeowners policy provides the coverage needed it is necessary that the homeowner understand the basics of homeowners insurance.
© 2020 – Barry Zalma
Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He also serves as an arbitrator or mediator for insurance related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims handling lawyer and more than 52 years in the insurance business. He is available at http://www.zalma.com and firstname.lastname@example.org.
Mr. Zalma is the first recipient of the first annual Claims Magazine/ACE Legend Award.
Over the last 52 years Barry Zalma has dedicated his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to make it possible for insurers and their claims staff to become insurance claims professionals.
Read posts from Barry Zalma at https://parler.com/profile/Zalma/posts