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Archive for the ‘home insurance’ Category

In the wake of damage caused by hurricane/tropical storm Irene, many are left wondering how they will pay their deductible and what their claims will be like. For those lucky enough to escape the storm, many are rightly concerned with the possibility that the next one might strike their home. What will happen? If you have hurricane coverage, your insurer will take care of you, but you might have to pay a special deductible.

Hurricane Deductibles Versus Normal Deductibles

In places where hurricanes hit regularly, such as Florida, Georgia, and pretty much the entire Atlantic coastline, Gulf coastline, and New England, insurance companies do not charge a normal deductible. Instead, they charge a hurricane deductible.

The difference is that, rather than the flat amount you pay with a standard deductible, you pay a percentage of the market value of your home. So, if your home is worth $300 thousand and your hurricane deductible is 2 percent, you pay $6 thousand. This is almost always more than a standard deductible, such as $750.

Companies do this to save themselves thousands of dollars per home in claims, since they often have to pay to fix thousands of homes per hurricane.

Unless you live right on the coastline, in which case your deductible may be very high, hurricane deductibles rarely stray from the one to five percent range.

All states and districts subject to hurricane deductibles are:
The South and Southwest
Alabama, Florida, Georgia, Louisiana, Maryland, Mississippi, North Carolina, South Carolina, Texas, Virginia
The North and Northeast
Connecticut, Delaware, Maine, Massachusetts, New Jersey, New York, Rhode Island
Other
Hawaii, Washington, D.C.

Will Victims of Irene Have to Pay Hurricane Deductibles?

Hurricane Irene is tricky case, since it was not a hurricane the whole time. Before it hit New York and New Jersey, as well as Vermont and other more northern areas, Irene was downgraded from hurricane to tropical storm. While you might think this would be a straightforward case of nobody having to pay hurricane deductibles, the reality is different.

In New York and New Jersey, state regulators have declared that homeowners should not have to pay hurricane deductibles. So far, several insurers have come out and said that is the case and that they will not be charging more than the standard deductibles. However, other states have been less clear. Read the rest of this entry »

Even if you read your policy very careful, you might still be surprised these 10 things are not covered.

#1: Currency

Some people think keeping money under their mattress is safer than keeping it in a bank. At least money in banks are insured! If you have cash lying around, under the mattress, or even in a safe or lock box, it will probably not be reimbursed under the terms of your homeowners or renters insurance.

#2: Water Damage from Backups and Floods

Unless you have flood insurance, nowadays insurance companies won’t cover water damage caused by flooding or storms.

What most policies do cover burst pipes and damage from accidents or non-flood disasters.
Don’t expect sewage backups or other pipe backups to be covered standard though. What you need is “sewer backup coverage”.

#3: Trampolines

Depending on your state, you might not get coverage for your trampoline. Obviously, no trampoline repairs, but the bigger concern is your liability from injuries incurred during trampoline use. Over 100 thousand injuries happen each year due to trampolines.

In some places and with some companies, you might be disqualified from getting any property liability coverage at all if you put in a trampoline. And don’t think about not telling your insurer, because they can void your whole contract if they learn about it.

You should also be concerned about the damage to your home or others that a trampoline can cause if it is blown away in a storm. At the very least, bolt it down.

#4: Much Ado about Pools

While screened pool enclosures are great for making sure you can use your pool whenever, free from bugs and other things that might drift in, they are also super expensive, vulnerable, and usually uninsured. This is especially true in coastal states in the South, where enclosures and tropical storms are both common. Enclosures are extremely vulnerable to hurricanes and high winds, when objects flying through the air can crash into them and cause thousands or even tens of thousands of dollars in damage. Don’t even bother with the claim, because they are not going to pay it. Read the rest of this entry »