It seems that insurance problems are a more common complaint we hear from homeowners. Because in our industry of water damage and mold removal, we deal with a lot of insurance problems and insurance companies. They all have their quirks and different level of difficulties. However, there is an increasing trend among some insurance companies to reduce the coverage they offer while only increasing their rates. This trend is fueled by greed. It reflects a moral problem in our society. So, no we won’t fix this problem overnight so now the question is, “how do we protect ourselves?”
The first step in protecting yourself is by choosing the right insurance company. Because insurance problems come primarily from bad insurance companies. The problem wouldn’t be so common if we as consumers did more research. Insurance companies are not all created equal. Your experience when you have to file a claim; is a direct result of the company you do business with. Therefore, insurance problems stem primarily from companies with poor reputations on how they pay claims and the difficulty of processing those claims.
We have our own stories of smooth and difficult claims with insurance companies. So, yes, we can make a list of the best and worst insurance companies based on our own opinions and experiences. However, information from independent studies serves your interest best. We feel confident after reviewing the research from these organizations listed below that you will see agreement among them:
Exclusions have always been a part of the problem. There are some exclusions that you need to be made aware and that you probably haven’t even thought about. Also, below is a list of the top exclusions from a homeowners insurance policy.
- Some policies exclude any type of damage to the basement portion of your home
- Limitation on coverage for basements
- Damage caused by wear & tear, rust, corrosion, or gradual deterioration
- Water damage caused by flood, underground water or water that enters through cracks in the foundation
- Freezing of indoor plumbing
- Exterior as a result of freezing, melting or moving snow or ice and heaving frost
- Snowslide, landslide, and earthquakes
- Insects or rodents
- Mold removal & cleanup
- The office portion of a home-based businesses
- Some policies for condominiums are so basic they only cover major catastrophes like explosions