 With insurance rates rising over the past several years, many policyholders are looking to reduce coverage to offset those increases.
While this is understandable, by doing this they are taking on sizable financial risk that they likely can’t cover if the unexpected were to happen. Here are 3 examples:  Insureds along the southeast corridor got a rude awakening in September as a result of the historic damage caused by Hurricane Helene. Many affected were far inland and geographically not used to the catastrophic levels of wind and water this storm produced. Thousands are still in process of understanding what their insurance policies cover, filing claims, and getting estimates for repairs. The damage from this hurricane included:
Most homeowners have a standard homeowners policy. What does that cover? It can vary significantly, but in general:  Water damage is the 3rd most common home insurance claim, behind wind/hail and fire/lightning claims (ref: Insurance Information Institute).
Of all water damage claims, the root cause is damaged pipes. So, while indoor plumbing has been one of the greatest conveniences of homeownership, it has been one of the greatest sources of losses of home insurers. Do you know which water damage is covered vs. not covered by homeowners insurance? Here are 5 major considerations to help you identify which side of the fence water damage may fall on regarding homeowners insurance coverage:  Weather forecasts for the Central Savannah River Area (CSRA) have projected significant rain amounts due to tropical storm Debby. For those in Savannah and Charleston, which can flood even with regular rainfall amounts, warnings have been issued for possible historic flooding events.
Generally, most of the CSRA isn't considered a typically flood-prone area. But as we recently saw in our local area, sudden heavy rain storms created flash floods in areas that weren't at all known for flooding. Unusual events like this have homeowners questioning whether their homeowners insurance covers flooding from heavy rains. What do you think - does a typical homeowners insurance policy cover water damage from storm flooding? If you said "no," you're right. Homeowners must have a specific flood insurance policy to cover water damage from flooding, even if their homes are not considered to be in a flood plain. Wondering if you should look into getting a flood policy? Here are the key points you need to know:  Flash floods have already struck the CSRA this summer and caused unexpected property and vehicle damage.
Even though you may not live in a flood-prone area, there are plenty of low-lying and flood prone areas in the region where you may park your vehicle. Here's what you need to know about auto insurance coverage for flash floods:  As insurance rates have climbed over the past several years, it has insureds hard pruning coverages to offset those increases.
It's understandable why they're doing that, but it's like gambling with their money. Many become significantly under-insured when they do that and take on huge financial risk. It takes just one event to financially destroy them, as the following examples illustrate:  Damage from hurricanes can include some or all of the following:
The coverage of standard homeowners policies can vary significantly, but in general: |
AuthorDennis Lam Archives
July 2024
Categories
All
|
RSS Feed
