By: Robert Hess

While researching information for this article, I was surprised to find out how little, people understand about their Homeowner’s Insurance. Now I’ll be the first one to admit I don’t always read the small print when I sign things. And yes, that applies to insurance policies. Now, don’t get me wrong, I try and make sure I understand the important stuff, like policy limit amounts and things of that nature. In other words, I want to make sure I have sufficient coverage. I’m not really worried, I mean after all I’ve had the same insurance company for twenty years. I’ve never been late on a premium, and heck, I even have my two cars insured through them as well. The insurance company is my friend right? ………………….Wrong.

What I’m about to say should disturb you if it applies. As a matter of fact, to get my point across, (and for the sake of easy reading), I’m not going to sugarcoat it one bit. Here it is, as plain as it gets:

  If you own a home and you rent it, or part of it, out without telling your insurance company, they will not pay your claim if there is a fire. In other words, you still get to pay the mortgage, but you have no house to show for it.

  If you decide to turn your basement into an apartment and not tell your insurance company, especially if there is a stove in it, your claim will most likely be denied if they determine the fire started in the basement. In other words, you still get to pay the mortgage, but you have no house to show for it.

  If you make additions onto your home without informing your insurance company, and it is determined a fire started in that addition, or some kind of claim arises from that addition, such as injury or death to a visitor, your claim may not be paid. In other words, ............ well, I think you get the picture.

Don’t think for one minute, that insurance companies will not deny your claim if they think they can get away with it. There’s no reason to let this happen to you. If you think you may be under-insured or worse yet, not have the proper coverage, do yourself a favor and talk to your agent. The added coverage won’t cost too much more than you’re paying now, and will be there for you should you need it later.

Warmest Regards,
Bob Hess

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