And other facts you need to know… including insurance policies relating to the type of dog you have
I recently spoke with my insurance provider to renew my homeowners’ policy and she asked me if I had a dog, which I do. Luckily for me I have a small 20-lb pug, because unbeknownst to me, I could have actually been denied a renewal if I had purchased a dog that they deemed high risk, such as a German Shepherd, Doberman Pinscher or a Husky. Interesting Fact: According to statistics, there is a dog bite every 6 seconds in the United States and insurance companies paid out a total of $498.7 million in claims dollars to defend and compensate those injured from dog bites.
Here’s what else I learned after speaking with the experts at E&Y Agency about home insurance policies that had me saying, “huh…I didn’t know that.”
- The market value of my home may not equal the rebuilt costs. When looking at your home ownership, you will have to decide whether you want to insure your home for Replacement Cost or Market Value. Depending on your situation each has its own pros and cons. Replacement covers the costs of what it would take to repair and replace your entire home, whereas market value is what your home would currently be worth on the market to purchase. There may be a discrepancy between the two, so you have to decide which option makes the most sense for you.
- Poor maintenance on my part may void an insurance claim for damage.
If damage results from my negligence in maintaining my home, my request for coverage may be denied. For example, if I have neglected upkeep on my roof and, as a result, have water damage. That’s on me. I thought that’s why I had insurance, but I guess it’s an insurance policy… not a maintenance policy. - My lender can restrict the amount of my deductible.
Many people try to increase their deductibles with the goal of saving on their insurance premium. However, it is in the best interests of the insurance company to have your home maintained properly and will limit the deductible (usually to a maximum of $1,200) to ensure that they are called for the big fixes. - Adding home safety features could save me money in the long run.
If you add items to your home that help safeguard against disaster, your premium will likely reflect the extra protection. Think home alarm, water detector, cameras… Ask your insurance expert what items might help reduce your premium. - Remodeling work in progress may not be covered under my existing plan. I didn’t realize that the work done on my home to upgrade my kitchen isn’t covered by my home ownership policy. Apparently, I need to alert my insurance provider to the fact that I am undergoing renovations and have an amendment put in place to cover any accidents that might occur as a result. If I don’t tell, I won’t be covered. Who knew?
Ultimately, as a homeowner, you are responsible for understanding your policy. We recommend annual conversations with one of our insurance experts so that we can answer your questions and provide the advice that has you breathing a sigh of relief. With decades of experience, our experts have seen it all!
In sum, whether you buy a dog, or make a major change to your home, make sure you tell your insurance broker
About E&Y Insurance Agency and Tax Preparation Services
E&Y Insurance Agents are dedicated to giving our clients insurance products that provide quality protection and value pricing. Our goal is to establish a successful partnership with our clients, our staff members, and our insurance companies. Our success is measured by our clients choosing us because they believe in our ability to meet or exceed their expectations of price, service, and expertise. Call us now at 248.817.8071 to talk about your insurance needs! We are located at 888 W Big Beaver Rd #750
