Consumers’ Guide to Homeowners Insurance Protective Step: Know Policy
Palm Beach Post
September 20, 2004


If Charley and Frances didn't convince you to take this simple step, perhaps Ivan and Jeanne will.

Read your homeowners insurance policy. Knowing in advance what it says could save you headaches if a hurricane wreaks havoc on your house.

"Read your policy and know what's in it," says Jeanne Salvatore of the New York-based Insurance Information Institute, an industry group. "If you're not comfortable doing that, call your agent and ask questions."

It won't be the most exciting read, but it might be among the most important. It will tell how much you're covered for, what you're covered for and how much you'll have to pay out of your pocket if your home or what's inside it is damaged.

For example, many of the recent complaints and questions received by the state Office of Financial Services for Hurricanes Charley and Frances deal with the hurricane deductibles most policies carry. About two-thirds of all policies in the state require homeowners to pay out 2 percent of the covered limits - on a $100,000 house that means the deductible is $2,000.

…

Some things that a homeowner assumes are covered by his or her policy, in fact, might not be.

"Make sure of what you have," said Robert Hunter, a former Texas insurance commissioner now with Americans for Insurance Reform, a consumer group. "You may need flood insurance. Homeowners policies don't cover floods, and that's obviously an important factor in Florida."

For a copy of the complete article, contact AIR.