The homeowners insurance market has been greatly impacted by storm activity the last few years. Many insurance companies have made changes to their policies to protect their interest. We have put together a list of key coverages to help educate buyers during the quoting process.
These are items to look for when buying homeowners insurance in Southern Indiana and surrounding Tri-State area.
Look for RC or replacement cost on your roof, not ACV. One of the most common insurance claims in the Evansville area is on roofs due to hail and wind. ACV means the insurance company will depreciate the cost of your roof, leaving you out of pocket when it comes time for repair or replace.
Try to get a flat deductible when available, regardless of peril. For example, some carriers are going to a deductible where you might have $1000 for typical claims, but a percentage of your home value when hail/wind is involved. This percentage of your homes value can be thousands of dollars higher than what you “think” your deductible actually is.
Earthquake Coverage is an item I’ve talked a lot about. There hasn’t been a big one in a long time, but DNR believes the New Madrid seismic zone is set for a big one in the next 50 years. Know that your homeowners insurance policy does not cover earthquake damage UNLESS it specifically states it on the declaration page.
An often overlooked detail is also the financial strength of your carrier. All insurance companies licensed in the US are subject to financial ratings, to help consumers gauge how financially sound their insurance company is. This can help signal problems when it comes claim time. Look for an insurance carrier “A” rated or better.
If you keep these few items in mind, you will maximize your coverage for when you need to file a homeowners insurance claim.
- Replacement cost on your roof, not ACV with depreciation.
- Flat deductible, not a higher percentage for wind/hail.
- Earthquake Coverage, a must if living in the tri-state area and MUST be listed on your declaration pages.
- Financial Strength of A or better.
