Since the 04 hurricanes, the majority of the homeowner insurance companies have restructured their policies to a more basic form with the option to add various coverage’s to customize your policy. This is a good thing so long as your agent lets you know what additional coverage’s can be added to your policy.
When obtaining a quote for homeowner insurance, keep in mind that not every company is going to offer the exact same basic form of coverage’s. This is where the buyer has to be aware. Because insurance agencies offer different companies with various levels of competitiveness, some agencies delete valuable coverage’s to lower their premiums.
Here is a list of various coverage’s that you need to review to make sure you have on your policy. Most of these endorsements can be added to your policy for an additional premium.
1) Replacement cost for contents-this endorsement changes your claim payout for your contents from actual cash value (depreciation) to reimbursing you for full replacement cost.
2) Sewer Backup- this endorsement will provide coverage if your plumbing or toilets back up into your home.
3) Screened pool cage coverage- most policies either exclude this coverage or limit the coverage to 10,000. If you own a pool screen you have to make sure you have adequate coverage as your screen is usually the first to go when a hurricane occurs.
4) Animal liability- Some of the largest liability claims that occur under a homeowner policy pertains to animal issues with dogs leading the pack. If you own an animal please make sure your policy offers coverage for this exposure.
5) Sinkhole coverage- Believe it or not, this coverage with a lot of companies has to be endorsed back on the policy to provide coverage.
Some agents don’t offer these coverage’s when quoting so you think that agency offers a competitive price. However, at the time of application is when the agent asks if you want to amend your policy by adding these coverage’s. Some people being stressed because of a closing on the home just tell the agent to write it with or without the additional features because they are out of time to change to another agency.
Of course this is not the norm but it most definitely occurs more than you might think. Don’t panic just beware that you have to understand your policy. The best time to do this is when you are obtaining quotes before the time of application.