Common Holes In Homeowners Insurance
Common Holes In Homeowners Insurance, Many people are surprised at the emergencies that most policies don’t cover. Beware of common holes in homeowners insurance, Earthquakes, unexpected deductibles, and flooding are just a few of the costs your homeowners policy might not cover. But if you’re like most Americans, you probably don’t realize it. According to the MetLife Auto & Home Insurance Literacy Survey, many homeowners are clueless about the ins and outs of their policies, which means they could easily end up paying a lot more than they expected after damage to their home.
That’s what happened to Aditi Haridat’s parents, shortly after they bought the home of their dreams. A lamp overheated while they were out of the house, creating a fire. Not only did they lose their pet cockatiel, but the inside of their home was partially destroyed. That was only the beginning of their nightmare. After their insurance company arranged for a contractor to redo the inside of the house, that contractor ended up inadvertently causing a major flood in the basement, which led to a black mold infestation.
Haridat’s parents, who live in New Jersey, were frustrated when the insurance company offered less than the estimated cost to repair the home. The stress took a toll: “My poor parents couldn’t sleep. They were completely distraught,” says Haridat, a documentary filmmaker. Eventually, the family decided to hire a public adjustor to help them negotiate a higher settlement.
Almost half of all homeowners in the MetLife survey didn’t know how much insurance coverage they had for the contents of their home, and 1 in 3 didn’t know how much their home was insured for. MetLife warns that this “knowledge gap” can lead to costly surprises and recommends that homeowners review their policies more closely.