Do You Have Sufficient Homeowners Insurance Coverage?

Unfortunately many homeowners insurance policy holders do not have enough coverage in the event of a major problem. Surveys conducted on a regular basis vary in their view of the extent of the problem but the majority agree that about two-thirds of all properties do not carry sufficient insurance and that, on average, these properties are under-insured by about 20 percent.

Usually of course you do not learn that you are carrying too little insurance cover until calamity strikes and then it is too late. In states like California, in which wildfires are not uncommon, many folks were dumbfounded after the latest devasting fires to find that there was insufficient money available when it came time to rebuild their homes.

The problem is not only concerned with the amount for which you are insured but also extends to the sort of coverage you have. You may be surprised to discover, for instance, that numerous the victims of Hurricane Katrina revealed that they had been informed by their insurance agents that they did not need to be covered for flooding.

So why are so many homeowners under-insured? Surely it is in the interest of home insurance agents, who are after all the experts in this particular field, to make certain that their customers are fully covered, not just to safeguard their own reputations but also because they are normally paid a percentage of every policy the sell.

The answer regrettably is simple. Far too many home insurance agents are working on volume and so do not take the time to make sure you have the correct policy for your property but just sell you whichever plan they can as fast as possible and then move on to their next customer. Additionally, the market now is very competitive and so a lot of insurance agents would rather get you to buy a plan at a less expensive premium and with less cover than you require than risk you purchasing from someone else.

Like just about all things in life you get what you pay for when it comes to property insurance. Of course, you can lower your monthly costs by taking a lower sum assured and by excluding certain forms of cover but are you really being wise to do so?

For almost all of us our homes are the most expensive investment we are going to make and our lives, along with those of our family, can quite literally be shattered if we cannot replace our home and personal belongings when disaster strikes. And, if you think it could never happen to you, just think back to the many terrible stories you have heard in the not too distant past from the victims of Katrina and those who lost their homes in the California wildfires.