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Home Insurance: Is it covered?

posted by Matthew Brown @ 10:13 PM
Monday, March 21, 2011

So you’re buying your first house.  Now is a great time to review home insurance policies and find answers to a few important questions:  What losses are covered?  When do I use it?  How do I know if I’m overpaying?

Let’s start with the basics:  Home insurance is designed to rebuild your home should it be damaged or destroyed.  Many years ago insurance started out covering only fire losses, which is where you get the term ‘Fire insurance’.  However, Fire insurance has expanded over time to be the much more comprehensive Home insurance.  Named perils insured against for Home insurance are Fire/Lightning, Smoke, Wind/Hail, Falling Objects, Vehicles, Vandalism/Mischief and others (read your policy closely and consult your agent).  Exclusions can include: Flood, Earthquake, War, Nuclear Hazard, Intentional Loss and others (read your policy closely and consult your agent).  If you are concerned about flood or earthquake there are often coverages available to you.

Be Careful!!  Some insurance companies are letting policyholders go because they are filing too many claims!  If you think you may have a loss, call your personal agent first.  He/she will be able to guide you to make sure the claim is covered and worth filing.  A good practice is to only file a home insurance claim when you really need to.  For many companies in GA, the underwriting looks just as bad/worse to have three $600 claims in 5 years as is does to have one for $20,000.  Insurance companies know accidents happen, but when 3 or more claims happen in a short period of time, there is a pattern of loss and the insurance is going to cost that much more as a result.

To make sure you’re getting the best rates, call and speak to your personal agent.  They are there to help you and work for you, not just collect your premium!  If you’re not receiving good customer service or you feel your rate is too high, do not be scared to shop around.  All companies look at basically the same information, but they all interpret it differently.  You could save big just by making a few phone calls.  And don’t forget to bundle the Auto, Life, and Umbrella policies.  You can certainly get a better overall rate by having policies under the same roof.

Matthew Brown

Hello, my name is Matthew Brown and my career with Liberty Mutual began in 2007. I attended Kennesaw State University and The University of Georgia. Here at Liberty Mutual we are committed to helping you find a comprehensive, cost-effective personal insurance program. Contact me to learn more about the many comprehensive and cost-effective insurance programs Liberty Mutual has to offer. Office 678-597-8429

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