Your Home Insurance Policy - Carswell Insurance Services |
Stories of post-Katrina insurance travails should be cautionary for coastal area homeowners. Misunderstanding your coverage and definitions of your coverage can be costly. There are, for example, major differences between “Wind and Hail” deductibles, and that of a “Named Storm,” states Bill Thomas, president of Carswell Insurance Services.
For example: say your home is insured for $300,000. Your roof is damaged by a thunderstorm. If your policy has a Wind and Hail deductible of 2 percent (the usual), your share of whatever the repair cost totals will be $6,000 (2 percent of $300,000).
But if you have “Named Storm” coverage, says Thomas, with a deductible of 2 percent and $1,000 for “All Other Perils,” your share of the repair will be only $1,000, a savings of $5,000.”
Of course, if the damage were caused by a tropical depression named by the National Weather Bureau, there would be no savings. The 2% deductible would apply.
Thomas also points out that, “Flood insurance is also subject to definitions of cause. Your concerns are damage to the dwelling as well as damage to its contents.”
Most policies clearly cover damage caused by a storm ripping off a roof, damaging the structure and soaking the contents. But what if the storm leaves the roof intact but causes nearby waters to rise and flood the structure and contents? Is that storm-caused damage, or
flood damage?
In areas hit by Hurricane Katrina there are a number of disputes whirling about those definitions. Was damage caused by broken flood control structures – levies – covered by Named Storm/All Other Perils or is that related to Wind and Hail coverage? What caused the damage, wind or water? Would waters have risen and levies break unless driven by hurricane force winds?
The knowledgeable staff at Carswell Insurance Services is equipped to answer questions such as these as well as any other insurance related topics.
Hilton Head Office:
1 Park Lane
Hilton Head, SC
843-785-5191
Bluffton Office:
2 Westbury Park Way
Ste 103, Bluffton, SC
843-815-9650
For more info, visit us on the Web at www.Carswellus.com.
