Did you know that two thirds of homes in the US are underinsured by an average of 18%?
In other words, to replace a $300,000 home you would have to come up with $54,000 that you would be missing through your insurance policy.
What would you do if you had to come up with $54,000 in an emergency?
What makes it worse, a common practice for some greedy insurance companies (none that we represent, thankfully) is to knowingly under insure a home to keep your premiums low, which in turn guarantees a sale for them.
We don’t think that’s right! To us, the insurance industry isn’t about making a sale, it's about protecting people and helping them prepare so that they know they are covered in their time of need.
That’s why we wanted to give you the opportunity to arm yourself…
With the knowledge of how to avoid these problems before they arise and make sure that you are never under insured.
How to Make Sure You Have Adequate Coverage
Having the right amount of coverage is all about avoiding common mistakes that are made while purchasing your policy.
At Ferguson Insurance, we always want to make sure that you are avoiding these pitfalls. However, in case you already have a policy these are a few of the things that may put you at risk.
Mistake #1: Putting mortgage amount or actual cash value of your home instead of the replacement cost of your home.
This number are not always the same. In fact they are very seldom the same. Know the replacement cost for your home and get your homeowners price quote based on that.
Mistake #2: Not getting disaster coverage.
Floods, earthquakes and certain other types of disaster are not covered in your standard homeowners policy. If you are in a high risk area for hurricanes you may need to consider a special windstorm coverage to supplement your homeowners policy.
Mistake #3: Being too cheap.
We all want to save cash, just not at the expense of our homes. Ask for the best coverage you can get for the money and not the lowest possible premiums.
Mistake #4: Not understanding deductibles.
Your deductible can change based on the cause of damage. You could be asked to pay anywhere from 1% to 5% in a flood or as much as 15% for an earthquake.
Mistake #5: Not insuring the contents of your home.
You have a policy but you don’t spring to cover the things you have bought overtime. You may be looking at a very large bill to replace all of the lost items if you have to pay out of your own pocket.
Think about everything you could have to replace in an emergency. You could replace your home, then have to pay for all of the furniture and appliances that you need in it.
Mistake #6: Not updating your insurance policy
So you bought your home 7 years ago, remodeled the kitchen and bathroom but haven’t updated your homeowners insurance policy? You could be way under insured based on having to replace your home in today’s market.
Overtime the replacement cost of your home will increase along with the prices builders charge, the price of materials, etc. Don’t let more than 2 years go by without getting updated replacement cost estimates.
We want to be a part of the solution… If you already have a policy it’s important that you call us and make sure you have the proper coverage for you home.
We offer obligation free consultations to help you (and your family) feel safe and secure knowing that you are prepared for whatever may come.