Careful About Using Your Homeowner's Insurance

 

There's a lot of things in life that aren't as they 'should be' in my mind. The decreasing size of ice-cream containers and how much yard work I can get done in a day (I’m never realistic there) come to mind. But the topic I’m disillusioned about at the moment is the state of homeowner's insurance today. I have an amazing insurance agent who goes out of his way to keep me informed with the state of the industry. Today’s Take-Away: Do NOT make a claim against your homeowner’s policy without talking to your insurance agent!!! (Pro Tip: Have an agent.) What is happening, and just happened to my dear friend, is that insurance companies, due in large part to their losses in California and Florida, are CANCELLING policies for insureds who make claims—especially small claims.

My friend who just made this mistake is north of 70 years old, and comes from a time when it was normal to turn in claims that were covered, period. They recently experienced an unfortunate lightning strike that took out the motherboard on their stand-by generator, and they turned the repair in as a claim. Then their policy was not renewed the next month. So now they have to shop the open insurance market, with a claim history that shows a claim. That’s a bad situation to be in today, and it’s going to be costly for
my friend.

So resist the temptation to ignore current reality and don't follow what ‘should be’. Go rest from yard work before you hurt yourself. Deal with the fact that ice cream is now sold in smaller containers. And for goodness sake, don’t turn in any claims to your homeowner’s insurance without consulting your agent first!!! (I hope you like the photo…beautiful off-grid home in my area…enjoy the beauty!!)