Is Your Homeowners Insurance Up to Scratch?

by Kerri Cooke

Homeowners Insurance is essential to protect your biggest physical asset. With natural disasters occurring all the time—from wildfires in California to hurricanes and freezes right here at home—it’s simply too risky to assume your home will remain unscathed in future weather events.

While hurricane-related damage is the No. 1 concern in SWLA, homeowners insurance can also cover your investment in the event of a fire, tornado, hail, or damage from busted pipes, a scenario that just played out with our recent winter snowstorm. It’s important to carefully consider homeowners insurance policies before making a final decision. Shayne Laughlin, an agent with State Farm, advises homeowners to scrutinize a policy and not simply evaluate it based on cost. “Most people don’t like paying for or thinking about insurance, but it can be the difference between rebuilding the home you had or figuring out where you will live after a catastrophe.”

Not all homeowners insurance policies are created equal. Levels of coverage vary greatly, even down to the point of how much of your damaged belongings you’ll be compensated for. Be careful not to be underinsured. If you’re unsure of how far your coverage extends, it is time to review your policies. Laughlin says, “There are many different types of policies. They dictate what and how things are covered, so if you don’t know if you have an HO1, HO3 or HO5 policy, you may want to reach out to your agent to get a better understanding. Find an agent that will take the time to review your policy and answer any questions you many have. There are endorsements and changes to policies at renewal that get mailed out with the policy, but if you don’t read them, you may be missing out on some coverage that you really need.”

Homeowners insurance premiums are rising in high-risk areas around the nation, but especially along the Gulf Coast and in areas which have seen repeated natural disasters over a short period of time, including SWLA. While cost increases can put extra strain on homeowners, it’s important to shop around to make sure you’re getting the maximum amount of coverage needed for the best rate. Laughlin advises “doing business with a company that knows Louisiana and its potential risks. Sitting down with your agent to do a cost replacement on your home and reviewing what you have in place currently is going to give you peace of mind when hurricane season rolls around.”

For further affordability, consider the discounts an insurance company offers when bundling multiple insurance policies. These discounts can positively affect your premiums. “Having your home and auto policies bundled together certainly helps with premium adjustments,” Laughlin says. And don’t underestimate the importance of a good credit score. “Most companies use credit as an indicator of risk, so guarding your credit score is one of the greatest gifts you can give yourself. Also, things like longevity with the company, number of products, and claims history play a part in creating your overall price.”

While shopping for insurance or updating your policies can be tedious, it is a necessity. Don’t let a weather event catch you unaware!