A few weeks ago I attended an information session about home owners insurance which was hosted by Nationwide here in Abilene. While ultimately important for me to know for my clients, this was personally eye opening. Here are a few tidbits that I found especially interesting:
1) Got a sunken living room? Well it is considered a basement (since it is below ground level) and basements are not covered by flood insurance!
2) When to file a claim? I’ve filed a claim over a cracked window….evidently a big mistake as each claim becomes ding on your “insurabilty report” called a CLUE report (Comprehensive Loss Underwriting Exchange). This CLUE report can determine your future insurance rates and your insurability! Ack! So for future reference, the guideline is only make a claim for expenses that you cannot cover yourself.
3) So… “What’s insurance for and why do I pay monthly?” became the obvious next question. The answer, the intent of all insurance is to prevent you from total financial ruin from a claim. Again, make a claim when you really can’t pay for the repair yourself.
In the future I’ll write more on this topic as there really is so much to learn in order to protect yourself through homeowner’s Insurance.
Here’s my disclaimer: I am not an home insurance sales person, so you should consult your insurance company before basing any decisions on the information and ideas that I have brought up here.
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