Extreme Weather and Insurance

Don’t Panic

By Steve Tague

If you live in a state that has been anyway affected by the storms that have hit areas of our country and you own a home covered by a Homeowners Policy, chances are you may be receiving a premium increase upon your next policy renewal.

You see, even if you have not had any claims during the storms, rates are determined by the claims experience of all Homeowners policies that are written through an insurance company. In recent history, claims experience has increased due to the bizarre weather we have all experienced. Some insurance companies have even ceased writing or renewing Homeowners business in certain states.

Our first reaction is to run out and find the cheapest premium that one can find, after all, everything is going up and in this economic environment, you have to get the best “bang for your buck”.

Please be careful, however, and look before you leap. Even though your premium has gone up, a cheaper premium from a different company may mean “pared-down coverage”. In other words the bargain that you think you are getting may eliminate some of the essential coverages that you may need in the event of a claim. All Homeowners policies are not the same. This is a fact.

My recommendation is to make an appointment with a Professional Independent Insurance Agency like ours, who represents many insurance companies and can work on getting not only a good premium level, but making sure you have the essential coverage for your individual needs.

Finally, please don’t forget that flood is not covered on your Homeowners Policy and if you live in a flood zone, you need to get a separate flood policy. Ask us about Flood Coverage!

Give Dawn a call at 973-948-3200 Ext. 10