Did you know your Homeowner Insurance Company can drop you after 2 or 3 small claims? Here are 6 steps you can take to better educate and protect yourself.
1. Don’t make small claims
- Raise your deductible to at least $1000. This can lower your premium up to 25% and prevent you from making those small claims that can get you dropped.
2. Check your CLUE Report
- Insurance Companies share information with one another through a DATA base called Comprehensive Loss Underwriting Exchange or CLUE. It’s very important for you to check your CLUE Report for errors which can make it very difficult for you to get coverage and may cause your rates to increase. You can go to www.choicetrust.com to review your report.
3. Have enough coverage
- Report additions or upgrades to your home. Generally, premiums will not increase. Your agent can help you with appraisals or you can go to www.accucoverage.com
4. Visit an Independent Agent
- They can be very useful in high-risk areas such as flood zones. They are very helpful in helping you find the right insurer.
5. Ask what ISN’T Covered
- Flood coverage usually isn’t covered; you can go to www.floodsmart.gov for some very helpful information in securing flood coverage from government agencies. Look for sewage back-up coverage, this type of loss can lead to tens of thousands of dollars in claims. Mold is another loss that ISN’T typically covered. Many times a simple rider that can cost as little as $30/year and is added to your policy is all that is required for you to have some of these coverage’s. It is very important to know what is and isn’t covered in your policy.
6. Being Dropped
- Unless you violate your policy, you can only be dropped at the time of renewal. The insurance company has a 60 day window at the time of policy renewal to review you as a risk.