Secrets of home insurance that will impact you

home insurance loopholes

Some aspects of your policy of insurance of House – such as the rates and deductibles – are easy to find in your policy and understand. But some of the clauses are well buried within your policy declarations and exclusions pages. If you don’t read them can give you headaches if you ever have to file a claim.

Don’t wait until a disaster comes to find out what it covers and what your policy does not cover.

Deductible Insurance House misleading

If you have to file a claim, beware of tax loopholes that have to do with deductibles. Some house insurance agencies have different deductibles for each risk. Probably you know the price of your deductible for the common risks covered in your policy. But the homeowners insurance for areas with a high risk of (such as the Gulf Coast) hurricanes or tornadoes (such as the Midwest) areas normally have a deductible “special” separate and different if you want to make a claim for the damages caused by hurricanes or tornadoes.

“These separate deductibles are based on the value of the property of the insured,” says Robert Hunter, director of insurance for the Consumer Federation of America and former Commissioner of the Texas Department of insurance who is also familiar with establishing reductions for Florida property insurance rates. “Often they are about 5 percent of the value of the House.”

For example, if your home is valued at $200,000, your deductible “standard coverage” for “other risks” such as fire, theft and other losses may be between $500 and $1,000. But The¬†orange county water damage¬†declares that the deductibles on hurricanes and tornadoes can be $10,000. This is a big difference if you’re not prepared to pay for it.

For two types of deductible?

“Separate Hurricane deductibles are insurance policies to control the exposure of an insured to catastrophic losses, moderate the price of coverage and improve the availability of coverage,” said Bob Dean, President and Chief Executive Officer of the Agency’s insurance Dean & Draper in Houston, Texas.

The tale of two risks of insurance

According to Hunter, another tax loophole of especially egregious house insurance is “the anti-simultanea cause clause.” ” Which earned a nasty reputation after Hurricane Katrina.

According to this clause, if two events happen approximately at the same time (regardless of the order they occurred) and one is covered and the other is not, the claim will refuse him completely. So if your home is damaged by a windstorm (which is a hazard covered in a standard policy) but also damaged soon after by a flood – and don’t have flood – sure your insurance will not cover the damage done by the wind. “” Even though the fact that wind has removed the roof your home was what caused the flood.’ “he says Hunter.

Hunter States that another example is flooding and vandalism. “I looked on a claim where the Vandal got to the garden with swimming pool and poolside vandalism caused that the House will flood. As the owner did not have flood insurance, neither vandalism nor the flood damage will be covered,”he says.

Dean declares that “the anti-simultanea cause clause” is found in almost all home insurance policies.“There is the possibility that everyone has two emergency at the same time or one close to the other,” he adds.

If you wonder where you can find this clause in your home insurance policy, Dean suggests that you review the exclusions section.

This clause has brought with it a public outrage already thousands of claims has but denied partially or completely. However, what looks like an unfair wording is justified often. “In the past decisions of the Court is that the anti-simultanea cause clause is not ambiguous in its wording,” says Dean.

Limits of coverage

In addition to the clauses, Dean States that it also must be careful with the limits of coverage.

“Water damage normally covered under the homeowners insurance policy but that coverage often have caps or”limits of ‘according to the policy,’ “says.

A standard home insurance policy typically has exclusions of damages caused by water coming from flooding, water surface, waves and floods of water masses. Some insurance companies may also have limits for coverage of basements.

It is also normal that there are limits of coverage for jewelry, coins, firearms and antiques.

Compromising structures

Another common tax escape from home insurance has to do with the coverage related to certain structures in your House or a shed.

Maybe the bees got into the facade of your House and built a hive that compromise the Foundation of your home. Perhaps the termites ate part of your House and let you that you will pay your “account of the restaurant.” Dean says that some insurance agencies may hold that since bees and termites have been around for centuries, they could have attacked your home before coverage becomes effective.

Read your policy for full – up to small letters – prior to purchase or renew your home insurance policy. Check with your agent any limit or exclusion of possible coverage to understand how you will respond if you submit a claim,”says Dean.


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Article 19