Breakout the flipflops, shorts, sunscreen, lawn chairs, coolers, and review your home owner’s insurance policy. Wait! What...review the home owner’s policy?! As summer commences so does the beginning of fire season. Last year the unthinkable happened; entire city blocks were ravaged by wildfires and the nation was stunned.
Last fall we shared with you the latest trend many insurance companies are using to compete via premium price – adding sub-limits to a policy. In essence a sublimit reduces the insurance company exposure to risk and transferred it back to the homeowner, and therefore allows them to lower the premium. You may wonder, if the premium is lower, how is that bad for me? The answer is – it reduces your coverage. The worst case scenario is a catastrophic event destroying your home and then learning you don’t have adequate coverage to cover the cost rebuilding. The sub-limits are a subtle but very important nuance contained in the details of your insurance policy. To learn more review our hidden risk article, talk to your insurance professional if needed, and let us know if you have questions or would like to further discuss.
While the risk of a house fire is low, IF you have a fire, you’ll want your coverage to pay as you expect. So before you head out to enjoy some summer fun, take just a moment to review your policy for adequate coverage. Then relax, have fun, and enjoy!
We wish you a happy and safe summer!