Across the country, many Americans may go through life without a significant knowledge of the exclusions on their home insurance policies, and this can occasionally become problematic. While there are many types of incidents that may befall homeowners during the time in which they own these properties, most will probably be covered by standard plans. However, there might also be some serious discrepancies between what they expect will be covered, and what actually is. For this reason, insurance agents would likely do well to try explaining the ins and outs of policies to all their clients, on an ongoing basis, to make sure there are no unexpected gaps in coverage.
One type of potentially major home insurance concern that many people might expect to be covered for but may find that they are not relates to mold, according to a report from Rio Grande Valley, Texas, television station KRGV. Often, these problems arise as a result of flooding, which is traditionally excluded from home insurance policies and has to be purchased through the federal government, and consequently the fallout likewise cannot be covered under a standard home insurance policy.
A fine line
While this isn’t the case across the board – some insurers will cover mold removal costs in certain circumstances – experts generally do urge that homeowners make sure they know exactly what is and isn’t covered by their policies, because the price tag on such a service is often quite large, and finding out after the fact that it isn’t covered by a home insurance company could end up being extremely problematic financially.
“There can be companies that exclude it,” Lupita Rodriguez, a local insurance agent, told the station. “It’s just very important… to see their exclusions on their policy.”
What else can be done?
This kind of review is often important not only for mold, but other types of fungus, and even standard flood damage, the report said. In the past, it has become apparent that many consumers tend to overestimate the amount of protection their home insurance policies afford them, and therefore anything they can do to better understand their plans will help them not only feel more secure in making the best possible financial and insurance decisions going forward, but also feel better about the quality of the coverage they have.
The more insurance agents can do to ensure their clients fully understand the coverage they’re buying, the better off both are likely to be. That’s because, in general, people tend to be the most satisfied with their home insurance when they have a strong understanding of what is and isn’t covered by it, and when they have a good relationship with their agent or insurer in general. For this reason, any extra communication that agents can do is likely to go a long way toward not only keeping customer satisfaction ratings as high as possible, but also buoying client retention rates on an ongoing basis.