you Ve got your homeowner's insurance policy and you're wondering if they're, going to pay for a specific claim, let alone should you file that claim. So today we're, going to talk about the different situations where the insurance won't pay where they will pay in what you should do, whether you should or shouldn't file, a claim.
Let's. Just start off with the most common, most people are frustrated with home insurance because they're. Not paying your claim. You've already filed a claim. You're frustrated. You're angry. I get it that part is very frustrating because a lot of people, don't understand the little details that really screw you at the end of the day.
That's. Why? Having the right agent makes all the difference with insurance, car insurance as well, more so home insurance, because everybody's used to. I have car insurance. It's great yadda, yadda yadda.
I learned a few things. Maybe I don't know anything and eventually, they buy a home and they're like well. The car insurance worked out, they paid every claim. I've ever had they've been good. They've, given me all the rental, car and towing, and all that other stuff.
But now that I'm a homeowner, I can't file. These claims, what do you mean? This is why I bought homeowners. Insurance was to protect me well here's, the thing there are tons and tons of endorsements and what an endorsement is is an addition, an add-on to your policy, because, unlike car insurance, where they cover almost every single situation, your homeowner'S insurance, doesn't cover a lot of situations, and they do that on purpose to protect themselves from a lot of risks.
There's. The additional cost to have extra water coverage to have extra jewelry amounts to have extra furs and paintings and all that stuff. So, in order to do that, you have to add what's called an endorsement or a writer or the third way that people call it is an inland marine.
It's, coverage for your personal belongings, that is, in addition, so there are several different pieces and I'm, actually going to make an article in the future that actually goes into some of the exact specific pieces.
We'll talk about a few of them today, but if you guys want to learn, all of them subscribe hit the bell icon. So when that article goes live, you & # 39, ll be the first one to know. So your home policy is getting denied.
The first question is you've got to look at what's called the deck page. The declaration page. That page is the list of everything that's covered and everything that's excluded from your policy. Some of them are very confusing because they don't always list everything they put a little asterisk next to it, and then you gotta, find it on page 54 or page 23, and then it's, not descriptive, and then you Gotta call the agent and, at the end of the day, it becomes a really big headache.
This is where some of the insurance companies really get a bad rap. If all of these companies added all these extra benefits, your average house policy, which is twelve hundred dollars today in us, would be eighteen hundred and twenty-eight hundred dollars per year and there's no way you would buy that because there's another guy, offering twelve hundred, if you have ten people offering twelve hundred dollars, not telling you about everything, and you have three people offering you an 1800 policy.
You're, not going to question what is the biggest difference, because there's 10 of them there's, all the. If these guys, on average, are saying yes do this, do this and a couple of them say no, you're, going to default to the ones that average out the best and that's, one of the negatives or the downfalls.
So let's, get through it. Water backup typically not covered. Unless you add it, there's some pump and water backup overflow. Some companies don't cover content. In those situations, you got to read the fine print.
Now the thing about it is sometimes they offer these extras like warranties and cover breakage of your electronics and all that stuff. You got to keep in mind. These may raise your rates later. If you file them, so let's, go into how do we get that covered? What are the first things that we need to look at? Yes, we need to look at what our policy talks about and all the coverages we have.
What's excluded now, if you were told on a phone call, most agents are required or do record their phone calls for what we call errors and omissions to protect themselves. So that way you can't be like well.
I told you this, and I told you that, but you never did it at the end of the day you signed that paper, so you're at a loss there. If you & # 39, ve signed the home paperwork. If you haven't, you & # 39.
Ve got a really strong leg. To stand on, so go back, find the paperwork make sure you signed it, or e-signed it. If you did let's dig in a little bit further. What you need to do is you need to find out when you called them and try to have them, pull those calls, and listen to those.
If you're dealing with an agent, the cool part about that is, is there? Not normally directly impacted by the company. Do agents lose money if you file a bunch of claims? Yes, if they have a whole bunch of people that file a whole bunch of claims, they can lose money at the end of the year, which is like a bonus for them.
If they go too high of a loss ratio, whether they're exclusive agents or independent agents won't make a huge difference if they have a high loss ratio, those extra bonuses that they count on will go away.
So is there a small chance that they're going to rip you off? There is most of them don't, though I'm, going to tell you every time I've seen it. If they & # 39. Ve made the error, they have insurance, they actually purchase.
What's called no insurance, that's, errors and omissions? That's. That way, if they tell you something and it's incorrect or they told you you recovered, but forgot to change it, they can still cover it.
Under that Arizona mission policy, then they lose a little bit of money because they made a mistake, but they don't lose their whole bonus at the end of the year. The first thing is: try to keep it civil talk to the agent, make sure you remind them.
What happened when you called? If it's, a 1 800 number, they're gonna take time, pull those calls wait the day or two days for them to find it and listen to it, and then they can even send you a copy if need be, It's, a lot harder to get that copy because they really like to hold that tight just to be safe, but at the end of the day they have to adhere to the ethics.
And if you got someone that's, unethical, I can't help you there. Just there's, no fixing unethical people that's just the way they are. I'd, be interested to find out below. If you guys want to put a comment, have you had a situation of that where an ethical person explained that it was their mistake and it was covered? If you can & # 39, t get a hold of the agent or you're, having problems with them or you just don't like the agent.
Typically, each insurance company has a 1 800 number. So if they won't, let you talk to a manager. Then you're, going to look up 1-800 Allstate 1-800 progressive 1-800 state auto. They can always reassign you to another agent or agency that way they keep you as a customer, and you're happy now going into the typical things that insurance companies don't cover some of the most common things, and these are things that I typically add onto a policy when I quote it now if the price is way too high, we're, going to go over it and explain it a lot more in-depth because I need you to understand why my price was higher.
If you chose to take them off that's up to you at the end of the day, but at least I can tell you what the most common things are and then you can either avoid them or take that risk water, backup, water, backup.
Typically, 5000 is what people do. I even fall in that boat, sometimes because that's, that price range where it's, not that much expensive. So if I saved you a few hundred dollars, I can put it back into water backup and you'll be okay with that.
But the problem is that 5000 really isn't enough. If you had a water claim, a pipe burst and didn't know about it for two days and it flooded your basement. You're talking at least 10 to 15 000 worth of backup.
Now that's, where people take that risk, they don't want to pay the extra 60 to 70 a year to have that extra 5 000 back-ups. I do it because i & # 39. Ve actually had two water claims in the past, so I know how much of a benefit that is to me that's.
Also, the number one claim that people that insurance companies get the next one is personal contents, always always always make sure that you have full replacement cost on your contents. You want to make sure that everything's, a cut 100 covered up to today's, value camera gear guns, jewelry furs paintings.
All of these things, anything that has a higher value than fifteen hundred dollars. You should think about whether you should or shouldn't. Add it on as something called scheduled property talk to your agent about this item.
If it is, you may have coverage, because some companies allow you to go higher than that. You might have 2500 not likely, but if you don't have this coverage, then you need to schedule it. So, for example, I have pretty nice camera gear.
I've got my camera. I've got my computer. I've got other cameras upstairs. So i & # 39. Ve got a few hundred dollars worth of camera gear, maybe a couple of thousand dollars. So I increased my camera gear.
My kids have a computer. I have two computers. I've got a laptop. My wife has a laptop, so we're all tech-friendly right, but if I lost any of that stuff, no matter how old it is, whether it runs slower fast to replace those things with today.
The equivalent is going to cost me thousands and thousands of dollars, most computer equipment maxes out at 2500, but per item, it's, usually a thousand or fifteen hundred there's a secret to this. So the thing is you don't always have to schedule.
It especially with rings are a pain in the butt, because you always have to label. It has to be clear-cut diamond it's, got look, it's, got three diamonds, it's, got the silver-gold in it. It's, got this, it's, got that it & # 39.
S got all this stuff and you have to list this on a piece of paper and then every three years you have to go into the jeweler said. Look at my ring: please appraise it and then hand it back to your insurance, so that's, a pain there's.
A way around that you can do what's called a blanket coverage and it's. Just like it sounds like if you were to cover yourself with a blanket anything that falls underneath that blanket is going to be covered.
Most companies will let you do 50. 000. 25. 000. 10. 000, even 5, 000 blanket coverage. So for me, what I did is I did about a five thousand dollar computer coverage because I'm thinking. Okay, I got my three daughters got.
Mine got my wife, so on and so forth. At the end of the day, I don't have to list every individual item now with paintings and anything that has collectible value. I would probably schedule those separately that way that those pieces show their individual value.
You may have the hassle of having them appraised every so often, but at least you know, if something does happen, it's literally stated it's. This painting, by this person in this type of color it's, authenticated it's, got this value, the fire happens.
They know that that painting is gone. That way, you're, not having to explain it and fight for it, where the blanket is a little bit of a trust thing where now they're like okay, did you really have that painting? Did you really have that and it's a little bit of a hassle almost every time it's covered, either way, so I would & # 39.
T worry too much about it. So are your items covered absolutely just be very careful that when you do these coverages that you read them and learn about them, if you're, not familiar with home coverages like I said, I'm, actually working on an article about That so subscribe hit the bell icon, but also I'm, going to put a couple of articles up here: the home 101s.
They're about 15 to 20 minutes long, but they're very in-depth on certain coverages that you should have when you have home insurance. I'm marking Flockhart with think insurance. I will see you at the next one: