Optional Alabama Homeowners Insurance Coverage
Optional Alabama Homeowners Insurance Coverage
Art Glasgow, Peck-Glasgow Insurance
Following the April 2011 storms, we are beginning to see another round of rate increases in the Alabama homeowner insurance lines of business. Many consumers call our offices each day wanting homeowners insurance comparison quotes. What we find is that most consumers do not know and have never had Alabama homeowner policy coverages explained to them. When we begin to ask them questions about optional coverages, many are shocked to know these perils are not covered on their existing policy, and have never had a coverage explanation.
Peck-Glasgow Insurance agents are trained to explain the Alabama Homeowners Insurance and auto insurance policies to their clients. Engaging the customer is an important part of the buying process. We believe that a customer will be more satisfied with their coverages if they understand them.
Here are some of the common optional coverages that are excluded unless a coverage is added by “buying back”.
Scheduled Personal Property: Many of these examples are not covered or have limitations on coverage amounts. Items such as guns, jewelry, furs, and silverware have limitations for the peril of theft. A schedule personal property policy will provide coverage often with no deductible. Other common items with limited or no coverage are tractors, 4-wheelers, and other special items. Usually these items can be covered on a specialty policy designed to cover these types of property.
Earthquake Coverage: The peril of earthquake is a standard exclusion from most property policies. As Alabama is included in the New Madrid Fault zone, there is the possibility that we could be effected by an earthquake here in Alabama. Earthquake coverage can be added for an additional premium with many of the insurance companies.
Sinkhole Coverage: Another of the common exclusion of Alabama Homeowner Insurance policies and many other property policies is the peril of sinkhole. As Alabama records the second highest number of annual sinkholes this is a real possibility in the state of Alabama. Morgan, Madison and Limestone Counties record new, known active sinkholes each year. Property damage has occurred in our area from sinkholes. Again, the coverage can be purchased as an option on most Alabama homeowner insurance policies.
Water backup from Sewers and Drains: While this peril does not happen commonly, we do see claims each year and coverage is not part of the basic homeowners insurance policy. Optional coverage can be purchased from most companies for limits of $5,000 up to the Coverage A limit on the structure.
Identity Theft Protection: With more and more online thieves striking each year, this is a coverage that can help you with the expense to recover your identity. Some policies now include this, but many offer it as an optional coverage. If you do not have this valuable coverage in another form, it is available from most insurance companies.
Flood Coverage: Flood an excluded peril on almost every property policy. Alabama Homeowner Insurance policies all exclude this peril, but coverage is available through the purchase of an Alabama Flood Insurance Policy. Over 30% of flood claims come from properties outside the 100 year flood plain map. Flood does happen, so get a quote and determine the value to you and your family.
No policy written today covers every possible thing that can happen to your home and personal property, however you can make a better decision about what risk you are willing to take by being informed about what your Alabama Homeowners Insurance policy actually covers.