When people get homeowners insurance, they assume that it will cover just about any disaster that could affect their home, so they do not need to worry about the financial ramifications of disasters that damage their home. Unfortunately, that is not the case, and people with homeowners insurance may all too often find themselves getting far less than they expected from their insurance, or perhaps even nothing at all. Here are five things that everyone should know about their homeowners insurance policy:
- Your contract probably does not cover all kinds of natural disasters
- Unfortunately, most homeowners insurance policies do not cover all types of disasters. In particular, insurance companies will typically carve out exceptions for types of disasters that a home might be vulnerable to due to its location, such as excluding flood coverage in flood zones. For such people, it may be necessary to purchase a separate policy to guarantee coverage.
- They will not pay for what you cannot prove
- While a homeowners insurance policy is supposed to cover any damage to your home or property, the catch is you need to prove it was caused by a covered event. If you cannot prove the damage was done by the disaster, they may not cover it. That is why it is essential to take pictures of any damage, which will help you to prove your insurance claim.
- You should always do your best to mitigate damage
- Another important factor to keep in mind is that your insurer expects you to take steps after a disaster to mitigate any further damage. This means boarding up broken windows, covering holes in your wall or ceiling with a tarp, and anything else necessary to prevent further damage from the elements. If you do not take these steps, your insurer may use it to avoid paying your claim.
- You should check how your insurer will calculate paying you back
- Different insurance contracts offer different means of determining how much they will pay back in a claim. Many insurance contracts will pay for the replacement cost, meaning they will pay whatever amount is necessary to repair or replace damaged items in your home. Others will instead pay the actual cash value, calculating the payout based on the current value of your property, minus any depreciation. This can significantly affect how much you get paid for your claim.
- Insurers will always try to pay out as little as possible
- Finally, it is important to remember that insurance companies are for-profit businesses, and their goal is to make as much profit as possible by paying you as little as possible. That is why they use their own insurance adjusters when assessing claims, who tend to favor insurers when it comes to determining damages. If you hire your own independent adjusters, however, you may find a more impartial assessment may get you a larger payout.
Anytime your home or other dwelling has been ruined or severely damaged, it is essential that you protect your property and the interest of your investment by enlisting the services of a Rubin and Rosen public adjuster. We can provide the assistance you need by helping you to work through the entire insurance process. If you want to make a property insurance claim and need assistance to obtain fair compensation for your losses, please give us a call at 718-376-6800 or visit our contact page.