Insurance exists to protect what is most valuable to us; our homes, businesses, vehicles, and – most importantly – our health, well-being, and lives. If you have a serious auto accident or your house is damaged by fire, for example, you can file a claim against your insurance company to get reimbursed for some or all of your loss. This is good news considering that repairing or replacing these investments can cost tens of thousands of dollars. The value and importance of insurance is hard to deny. In fact, if you obtain a mortgage to buy a home, the lender will typically require that you purchase homeowner’s insurance to cover at least 80% of the value of the home. The bad news is, filing an insurance claim is rarely an easy process. As with most businesses, the main goal of insurance companies is to make a profit. Insurance adjusters can be difficult, unreasonable, and sometimes even downright deceptive. Contact a Houston Insurance Attorney Today.
Complications that arise during the claims process are only one example of potential problems that may lurk within your insurance coverage. Many of these problems are there from the start. Insurance isn’t one-size-fits-all. When you purchase coverage, you are required to make a lot of decisions, from how much coverage you want to purchase to the size of your deductible. To save a few dollars a month, many people choose a high deductible and purchase as little coverage as necessary. Unfortunately, this can spell disaster if you ever need to file a claim.
Do You Have Enough Coverage?
What if your homeowner’s insurance doesn’t cover the cost of rebuilding your home and replacing its contents? As stated above, mortgage lenders generally require you to insure 80% of the value of your home. That may make the lender happy, but how will you rebuild and replace your possessions with only 80% of the value of your home? If you also have to shell out the first $10,000 because you chose a high deductible, you may find yourself in a difficult financial situation.
Be Wary of Exclusions in Coverage
Insurance policies may also exclude coverage for certain risks that you may not have considered. Take the following scenario for example. You buy a home and purchase a homeowner’s insurance policy. At the time of the purchase, you don’t have a dog. Two years later, you rescue a loving, gentle Rottweiler from the local animal shelter. You never think to inform the homeowner’s insurance company. A few months later, your dog runs into the road and a car swerves to miss him, crashing into a telephone pole instead. The owner of the vehicle wants compensated for thousands of dollars in damage to her vehicle. You file a claim with your insurance company, only to find out that Rottweilers are excluded from coverage as an ‘aggressive breed’ of dog. You plead with them that your dog wouldn’t hurt a fly…but it doesn’t matter. Insurance companies see things in black and white. The exclusion sticks, and you are forced to come out of pocket for the damages.
Dana G. Kirk – Insurance Attorney Serving Houston for Nearly 37 Years
If you are having difficulty dealing with insurance companies, or simply want to know if your current coverage is adequate, we can help. At the Kirk Law Firm, our goal is to make your life easier. Our legal team has extensive experience dealing with insurance companies. Contact us today for a free consultation about your case.
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Houston, TX 77027