Is Your Columbia SC Home Adequately Insured?
Knowing if your Columbia SC home is adequately insured from peril or not is more difficult than it used to be.
According to a study released by the Consumer Federation of America (CFA), insurance companies are cutting coverage and paying fewer benefits for damage due to hurricanes, tornadoes, floods and other natural disasters.
The CFA report says that Columbia SC homes have seen an increase in premiums and a decrease in coverage. Homeowners are exposed to higher disaster payouts because they have less money available to help themselves.
Columbia SC Home Insurance Going Up?
As if rates weren’t already high enough, 11 states have recently received requests for homeowners’ insurance rate increases of 18 percent or more. It is expected that insurance commissioners will block many of these pending rate increases because of the financial burden it will place on homeowners. Many homeowners are already coping with severe financial difficulties in this bad economy.
The study concludes that the insurance industry has shifted from a calculated risk-taker to a risk-avoider. Not only have insurers insulated themselves from their historic share of hurricane risk, they have made no serious effort to cover risks associated with floods or terrorism, which are entirely backed by federal taxpayers.
Spring storms have already wrecked havoc on many areas not normally prone to major natural disasters. As if things weren’t bad enough, the Atlantic hurricane season begins June 1st. 2011 was one of the most expensive years in history for insurance claims, and this year is on track to match or exceed 2011.
Now would be a good time to check and see if your Columbia SC home is adequately covered in the event of natural disaster. Remember, homeowner insurance policies do not cover flood damage. You will need a separate flood insurance policy to cover damage from flooding. Talk to your insurance agent to see exactly what you are covered for, and what you may need to add to make sure your Columbia SC home is protected the way you think it should be.