MISTAKE #5: Not Knowing What Your Deductible Is
Imagine your house is damaged by hail, and you file a claim with the understanding that you will be paying your $500 deductible as part of the claim. The adjuster comes out and does his assessment of your damage, tells you that your insurance company will be covering your loss, and that your deductible is $5,100!
Would that be a huge financial blow to you and your family? This scenario actually happened to a family who was working with one of our competitors in 2011. They were shocked. I would have been, too.
Why Does This Happen And How Can You Prevent It From Happening To You?
This happened because the insurance company changed the homeowner’s deductible from $500 to 1% of the value of the home. There are times when that happens, either because of the risk involved to an insurance company, or because the insured has asked how to lower their monthly premium, or other reasons. What you should know is that moving to percentage deductibles is becoming a lot more common in Colorado Springs.
What Should You Do?
Every year you receive, either in the mail, or electronically, your new policy’s declaration page/s. This document has all the changes that have been made to your policy outlined in it. You really should read this document every year, or have your insurance agent explain any of the changes to you. Then, always – before you file a claim – ask your agent or your insurance company what your deductible is for hail damage. This will prevent you from getting a nasty surprise like this other homeowner did!