Many homeowners may feel that their homes are adequately insured. However, there are a plethora of homeowners, or unfortunately former homeowners, who have endured great loss when a travesty occurred. These people found out the hard way that they’re homes weren’t adequately covered when a natural disaster hit, someone was injured on their property, etc. Having said this, the following includes some risks of having an underinsured home:
1. A Possible Increase in Emergency Home Repairs’ Costs
Homeowners sometimes must repair or replace different parts in the home to maintain current standards and codes after an emergency. So, comprehensive coverage is required.
2. No Adequate Coverage of Flood Damage
It’s imperative to have proper coverage for floods especially if living in a flood zone area. Additional coverage may still be needed even with the maximum protection of FEMA flood insurance.
3. Not Enough Coverage for Expensive Items
Expensive items, such as jewelry, electronics, antiques, and classic cars, may not be covered in a standard policy.
4. Possible Cancellation of Your Policy
If you must file a claim and is underinsured, your insurer could totally cancel your insurance policy.
5. Possibly Obtaining a High Deductible after An Accident
After being involved in an accident, you could have a deductible costing about $3,000 to $5,000 instead of a $500 deductible.
6. Filing Claims Can be Horrific
If you are underinsured, the claims process can be terrible.
It is crucial to ensure your home is adequately covered. If you live in the Astoria, OR or surrounding areas, various incidents ranging from frozen, busted pipes in the winter to floods/tornadoes, don’t risk being underinsured. With Linda Dugan Insurance, they can guide you step-by-step to ensure complete coverage. With several years, these insurance experts know the ins-and-outs of the insurance industry. Located in Astoria, you should contact them today.