The spring is shaping up to be another year full of storms and with them home insurance claims will follow. Many home insurance carriers are beginning to take a long and hard look at the way they write insurance contracts. In some instances home insurance carriers are moving to a percentage of dwelling deductible instead of fixed dollar all peril deductible. For example if your home is insured for $220,000 and your carrier moves to 1% deductible, you could be exposed to a potential $2,200 out of pocket deductible.
Changes of this nature are going to become more common in the foreseeable future as insurance carriers attempt to recoup losses that have them operating at a loss since the tragedies in Joplin, MO and Hazelwood, MO.
Be sure that you make time to review your home insurance coverages on your home insurance policy with your agent. This will help to ensure your are purchasing the most comprehensive coverage you are able to obtain.
The changes to home insurance policies are not as devastating as you might think, but the changes are definitely worth having a conversation about. Mainly because it will make some insured change the way the look at their home insurance coverage, and re-explore the true purpose of their home insurance coverage.
