Homeowners in High-Risk Areas Need to Review Insurance Policies

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  • Homeowners in High-Risk Areas Need to Review Insurance Policies

    Spring is in full swing, and while that may mean different things to different people, one thing it should universally mean for smart homeowners is a time for them to check in on their home insurance policies. In the spring and summer months, flooding, storms, and more can do significant damage to a property, and owners who aren’t prepared in terms of having their policies up to date may end up paying for it many times over in the end. As such, insurance agents may want to take the next few weeks to contact their clients and talk to them about how their coverage needs might have changed, and what they can do about fully protecting themselves while keeping their plans affordable.

    This kind of education may need to be pressed specifically upon consumers who live in areas that are prone to flooding, according to a report from Hamptons Online Media. The fact is that many Americans may misinterpret their standard homeowners’ insurance policies and not know that these usually won’t cover any sort of flood damage. As such, making an additional investment in this type of coverage could be crucial to staying afloat financially after the waters recede.

    Many things to consider
    When owners are weighing their flood coverage, and what they might be able to do to keep those costs as depressed as possible, they need to know that many factors go into setting rates, the report said. In general, the higher the risk of flooding affecting a structure, the more costly such coverage is going to be – but there may be ways for owners to figure out just how much protection they need.

    “Where the mechanical equipment is located is a big factor, and the age and quality of the construction,” Alison Schmidt, an insurance professional in the Hamptons, told the publication. “Homes next to each other can cost very different prices because it depends strictly on the particular property. Also, because so many of the homes out here are secondary homes, carriers want to insure their primary residences as well as their autos. They don’t want to just insure the higher risk second home.”

    When flood waters rise, homeowners will need to know they're being protected by the right insurance.When flood waters rise, homeowners will need to know they’re being protected by the right insurance.

    What can agents do here?
    Consumers might not like the idea of altering or even paying more for their home insurance, but if disaster strikes, that extra coverage could end up going a long way toward ensuring they’re fully protected from the fallout. Therefore, agents not only have to talk to them about whatever changes their coverage might need – if any – but also what benefits even examining their policies might have in the long run. Studies show that consumers are generally happier about their insurance coverage overall when they understand it and have a good working relationship with their agents or policy providers, so this kind of extra effort could help both parties. Consumers will feel better about their plans, while agents will likely enjoy higher rates of customer satisfaction and even improved client retention.