Do You Have Enough Insurance Coverage?

Unfortunately all too many homeowners insurance policy holders are not carrying enough insurance coverage in the event of a major problem. Surveys carried out on a regular basis vary in their assessment of the problem but almost all agree that close to two-thirds of all properties are under-insured and that, on average, these homes are under-insured by roughly 20 percent.

In most cases of course you do not find out that you are carrying too little insurance cover until calamity strikes by which time it is too late. In states such as California, in which wildfires are not uncommon, many folks were gobsmacked after the latest outbreak of fires to find that there was not enough money available when it came time to rebuild their homes.

The problem here does not only involve the total sum for which you are insured but also involves the kind of cover you have. You might be startled to discover, for example, that numerous the victims of Katrina said that they had been told by their insurance agents that there was no need for them to have flood insurance.

Why then are a lot of homeowners carrying too little insurance? After all, surely it must in the interest of home insurance agents, who are after all the experts in this particular field, to make sure that their clients are fully covered, not simply to protect their own reputations but because they are often paid a share of the premiums for each policy the sell.

The answer unfortunately is simple. Too many house insurance agents work on volume and so do not bother to take the time to make sure you have the right policy but just sell you whatever they can as quickly as possible and then move on to the next customer. Additionally, the market nowadays is highly competitive and so far too many insurance agents would rather sell you a plan at a cheaper premium and with less cover than you need than run the risk of you purchasing from somebody else.

As with almost all things in life you receive exactly what you pay for when it comes to property insurance. You can lower your monthly costs by going for a low sum assured and by excluding some types of cover from your plan but are you really being sensible to do so?

Our homes are by and large the most expensive investment we will ever make and our lives, together with those of our family, can quite literally be turned upside down if we are unable to replace our home when disaster strikes. Also, in case you think that this could never happen to you and your family, just think back to the many awful stories you have heard in the not too distant past from the victims of hurricane Katrina and the people who lost their homes in the California wildfires.