For many people, their largest and most important financial asset is their home, so protecting it involves more than just installing a security system or a sturdy set of door locks. Good home protection starts with having quality, comprehensive Homeowners Insurance that can protect against a wide range of risks and losses, including fire, burglary, vandalism, water damage, accidents, and weather disasters.
However, millions of homeowners across the country are underinsured and would not receive enough financial assistance to cover their repairs and damages in the event of a covered loss. Today's Aegis blog post looks at how homeowners might be underinsured, the consequences of not having enough insurance, and how Aegis Insurance & Financial Services can help.
How Homeowners Become Underinsured
When an individual or family buys a home, they also must purchase Homeowners Insurance to cover any damages or losses, and that original policy is typically based on the current value of the home and current possessions. But for many homeowners, their home value and personal property value can dramatically increase over time, even though their policy coverage amounts might not reflect those increases.
For instance, a home can go up in value when there are improvements or additions made on the home, such as adding an extra bedroom or bathroom, installing a pool, or building out an apartment over a detached garage. Homeowners can also become underinsured when they add pets to their family, since those pets could cause injury to visitors on the property. Also, nearby construction or development can make neighborhoods more prone to flooding, creating a larger flood risk for homeowners.
The Risks of Underinsured Homes
When a homeowner does not have adequate amounts of coverage with their Homeowners Insurance policy, this means that money paid by a policy for a covered event will not likely be enough to cover the full cost of repairs, materials, labor, or damages. For example, a homeowner might begin collecting antique furniture or valuable artwork but not have the value of that property reflected in their Homeowners Insurance coverage amount.
Likewise, if a homeowner adds a bathroom and bedroom to their existing home but the home later catches fire, they might not receive enough money from their Homeowners policy to cover repairs for the newest additions. Homeowners could also be in a financial bind if their old Homeowners Policy coverage amount is not updated to account for additional costs for rebuilding to be in compliance with the newest city or local building codes.
How Aegis Can Help
Aegis Insurance & Financial Services can help current and potential homeowners ensure they have the Homeowners Policy coverage needed to protect the value of their home and all personal property. Our insurance experts can assess current gaps in coverage, discuss different coverage options that meet homeowner needs, and determine if other types of policies are needed, such as Flood Insurance or Inland Marine policies.
For more information on our full range of Personal Insurance policies, contact Aegis today at 713-850-7622 or fill out our online form to request a free quote!