Thank you to Wendi Eiland for sending in this great information.  Wendi is an insurance agent in Beaverton, you can find out more about Wendi at www.wendieiland.com .

COVER YOURSELF!

Your homeowner’s insurance may be inadequate.

We all pay those premiums month after month and rarely actually need our insurance.  And when we do have a claim, many homeowners are surprised to find that the coverage they thought they had—they don’t.  Bottom line is that insurance is not a hot topic for a cocktail party, and declaration pages are the last thing we want to read in bed on a Friday night, so we rarely (OK, most of us never!) sit down and look at what we’re paying for—or know why we pay for it.

I’m here to tell you that what’s in those pages can quite literally be the difference between getting through a bad situation and back to your life, or losing all that you and your family have worked for. Following are some tips that will help you be sure your homeowner’s insurance will be there when you need it:

1)      Know your limits: Yes, your Homeowner’s policy provides protection for your personal property (AKA: your stuff…from your socks to your refrigerator) but certain things have caps on the amount the insurer will pay in the event of a loss. I was up in Forest Heights visiting a client recently and she had an extensive collection of art. Very valuable pieces—none of them protected. Needless to say, she was shocked. Another client had a $14k wedding ring—not covered. Your Rolex, your grandmother’s antique armoire, your Elvis Presley Hand-painted Collector’s Plates, your vintage woven rug—all need appraisals and special endorsements to be protected at their full value. There are many other caps like these. Talk to your agent.

2)      Know your risks: A key thing to remember: your homeowner’s policy protects you from perils that are “sudden and accidental”, not maintenance issues. If a ball goes through your window and rain gets in and ruins your hardwood floor—covered. If the caulking on your window isn’t good and rain has been seeping in over a long period of time and you have dry rot and a warped floor—more than likely NOT covered.  At least twice a year (I set a task on my Outlook), check your pipes, your water heater, your gutters and be watching for pooled water in your yard (could lead to water damage to your foundation—also not covered in most cases).

3)      Have a flesh and blood agent:  Our industry has done a fabulous job of putting the emphasis on price.  I mean, who doesn’t want to save a buck? The disadvantage to consumers is that the coaching part of the work is being neglected.  When something you thought was covered isn’t, or you were never given the opportunity to protect yourself from a certain loss, those few dollars you saved do not compensate for the hundreds or thousands you could lose. It’s difficult to identify these gaps in coverage over the phone.  A sit-down with a licensed agent can help mitigate potential losses.

The liability portion of your homeowner’s policy is another big issue (slipping and dog bites and lawsuits, oh my!)…but that’s a talk for another day.

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Wendi Eiland is an award-winning agent for American Family Insurance. The Wendi Eiland Agency, Inc. won the J.D. Power and Associates Award for “An Outstanding Client Experience”. We offer  home, auto, life, small business  and health insurance.

Opinions expressed in this article are the opinions of author, and not to necessarily the opinions of Meadows Group Inc.
All rights reserved on all original content, non-original content is given credit | Michelle Berry | 2009