Placer Insurance wants to know... Do you really know what your Homeowners Insurance is designed to cover?

1. A Homeowners Insurance Policy is designed to respond to sudden or accidental loss.  It is not designed to cover maintenance or wear and tear issues.  An example, the wear and tear of a roof over multiple seasons would not be covered under a homeowner insurance policy.  However, if the roof needed repair due to a sudden loss from a tree falling during a storm, your homeowner’s insurance would cover the damage.

2. Flood & earthquake insurance must be purchased separately.  Flood Insurance is designed to cover water damage from rising water coming into the house. This would include water from a blocked storm drain, or a creek overflowing its banks. Earthquake Insurance is designed to cover direct damage from earth movement. For example, damage to a home’s foundation, or personal property damage.

3. Are you in the process of buying a new home?  Ask your insurance agent to run a C.L.U.E. report.  C.L.U.E., stands for Comprehensive Loss Underwriting Exchange. The C.L.U.E. Report is a database that stores nationwide claim information.  That means if the current homeowner failed to mention there was $25,000 water damage claim two years ago, you don’t have to worry.  The C.L.U.E. Report will give you detailed information on a home’s claim history, so you can make an informed decision.  

4. Think twice about reporting those small claims.  Homeowners insurance is designed to cover catastrophic claims.  Asking for a higher deductible will not only lower your rates, it will help you avoid reporting the smaller claims, and the rising rates that accompany them.  

5. Was your home built prior to 1970?  Do you have the Building Code & Ordinance Endorsement attached to your policy?  If not, be sure to call your agent today and ask for the form to be added.  Why?  In the event that you have to rebuild or do major repairs to your home as the result of a claim, the building inspector may require you bring certain elements up to code.  The cost to bring a home to code, especially in California, can be significant.  This endorsement is designed to cover the cost of the upgrades.  

Sam Klekowski has been an agent with Placer Insurance Agency for 15 years.  He specializes in personal insurance, including but not limited to homeowners, auto, motorcycle, investment property, boat, umbrella, flood, and earthquake coverage.  Call Sam today at 916-784-1008 x102 for a full insurance review.

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