Author: Michael F. McDonough
Source: ezinearticles.com
Let’s face it, trying to figure out all the perils your home might run into over the years is a pain. In fact, if you’re not psychic it’s practically impossible! That’s why buying a named perils homeowners insurance policy is so difficult, and why most people opt for all perils coverage. It saves you the trouble of having to divine every peril your home may be facing. The trouble is, your all perils policy might not be as safe as you think it is.
An all perils policy is designed to keep you protected from the unforeseeable. For example, how many people would honestly predict that their home would be struck by a meteor? Since meteors aren’t included in the “not covered” list, your homeowners insurance picks up the tab!
The catch is, insurance companies are well aware of the hazards facing today’s homes. They’re going to do everything they can to keep their profit margins high, and part of that is keeping in mind that homes in high risk areas for floods, earthquakes, mine subsidence and other hazards are probably going to be victims. With that in mind these companies usually make sure those things are included in their “not covered” list.
If you don’t know what your homeowners insurance policy will cover and what it won’t you could find yourself in a lot of trouble. Hundreds of homeowners found themselves completely out of luck after Hurricane Katrina because their homeowners insurance policy specifically did not cover flooding and/or wind damage, and they hadn’t taken the time to pick up extra coverage to compensate for it. They were left homeless, with all of their belongings destroyed and without the resources they needed to pick up the pieces.
Since you don’t want to find yourself in that position you’re going to want to do a little bit of research a) into the geologic history of the area you live in/are moving to and b) into your home’s history. If your home has a history of flooding you’re going to want to make sure you’ve got flood insurance. (In fact, you’re going to want to make sure you have flood insurance anyway. Studies show that homes that aren’t in high risk areas have more incidences of flooding each year.)
But you get the idea.
There are a number of options when it comes to plugging the gaps in your homeowners insurance. You might be able to pick up extra coverage through your insurer. Some companies offer flood insurance and earthquake insurance as a supplement to their regular insurance coverage. Picking up that extra coverage through a private insurer rather than through a state funded agency is going to offer you better homeowners insurance rates, so that should be your first choice.
If you can’t get that coverage through your insurance company there are a number of state and federally organized agencies that can help you out. States with numerous active and inactive mines often have a mine subsidence insurance program, and FEMA runs the National Flood Insurance Program for homeowners who have a hard time finding flood insurance for their home. There are organizations like the Texas Windstorm Insurance Association that can help protect your home from wind damage. Check and see what’s available in your area.
Whichever option you have available, make sure you’ve got enough coverage to protect your home from whatever happens to come rolling your way. Don’t trust your all perils home insurance policy to do it for you.
Michael McDonough is a National Account Representative for QuoteScout.com. For more information about your homeowners insurance, visit them on the web at http://www.QuoteScout.com