5 Nightmare Scenarios That Stem From Partial Coverage

5 Nightmare Scenarios That Stem From Partial Coverage

Likely one of the most expensive purchases of your life, the value of your home and the possessions within are assets worth protecting. While it may be tempting to save on the monthly insurance cost if your bank or lender doesn’t require a home insurance policy, the benefits of keeping your insurance updated far outweigh the temporary savings of avoiding coverage. When you compare the monthly expense of home insurance with the potential cost of replacing your home or the expensive possessions within, it’s easy to see how valuable the right policy can be. 

Even if you already carry home insurance and think you have the appropriate coverage in place, there are a variety of policies that only cover certain types of damage. If you live in areas prone to wildfires, earthquakes, or tornados, you may need to purchase additional coverage to adequately protect your home. To further emphasize the importance of maintaining quality coverage, here are some unexpected consequences you could face without the proper coverage in place. 

1. Natural Disaster Oversights

While many policies include hail or wind damage protection, it’s important to explore the fine-print with a public adjuster in PA to verify that any potential natural disasters are adequately covered by your policy. For example, in areas prone to flood damage, the insurance company may exclude this type of coverage from their low-cost insurance plans. Even if floods or earthquakes are extremely rare where you live, it’s never a bad idea to prepare with additional protection. 

2. Personal Liability Catastrophes

Another unexpected scenario that catches many homeowners by surprise is a personal liability situation. If someone is injured on your property, you may be held responsible for their medical bills, missed work, and could even end up dealing with a lawsuit. Surprisingly, even a criminal trespasser could potentially charge you for personal liability damages if they are injured while breaking into your home! 

3. Problems With Your Lender

Since many banks and lenders require you to maintain comprehensive home insurance, you could be violating your mortgage agreement if you have insufficient coverage. If you stop paying your home insurance premiums, the insurance company is legally allowed to contact your mortgage lender. In worst-case scenarios, homeowners have been placed in default and can face immediate foreclosure.  

4. Out-of-Pocket Risks

If you recently purchased expensive furniture, built a new addition, or renovated the kitchen with valuable new appliances, you must update your total amount of coverage. If you are underinsured, you could be stuck with excessive out-of-pocket costs to repair and replace any damaged following a fire, natural disaster, or robbery. 

5. Potential Claim Denials

After suffering from a disaster or theft at home, the problem can become further complicated if the insurance company denies or underpays you for the damage. Our insurance adjuster in New Jersey will evaluate your policy for free, assist with the entire claims process, and proactively help you avoid these potential nightmares with experienced guidance.

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