ASA Insurance Discussed How Few Homeowners Update Their Property Insurance Policies for Catastrophes
09/04/2020

A leading provider of home insurance in Salt Lake City has shared findings about how few homeowners have updated their policies for catastrophe protection.

Online PR News – 04-September-2020 – Salt Lake City, UT – A leading provider of home insurance in Salt Lake City has shared findings about how few homeowners have updated their policies for catastrophe protection, despite recent events.

This information comes from a survey conducted by Clearsurance. It found that less than half of those surveyed have taken any action to update their policies. This study took place in 2017, a year fraught with natural disasters, including Hurricane Harvey.

One thousand homeowners were surveyed, and the results found that 87 percent expressed concern for the potential of a natural disaster to come to their area. But out of those surveyed, only 42% had actually taken any steps to make changes to their insurance policy or to prevent any gaps in coverage which would impact them in a catastrophic situation.

Anderson also recommends homeowners sit down with their insurance agent and go over their policy. Insurance agents aren’t just trying to get your money he says. Their job is to alert you to areas where you may lack coverage or not have adequate coverage.

The report from Clearsurance also found that 65% of respondents felt they were adequately covered with their current policy. The issue with the responses is that many times the policy doesn't cover all disastrous situations. For example, of those affected by Hurricane Harvey, about 70% were not insured.

Creed Anderson of ASA Insurance, a provider of business, vehicle, and home insurance in Salt Lake City, UT, says, "It's important to review your policy and make sure you have the right coverage." He recommends homeowners consider what type of disasters could hit their area, whether it might be an earthquake or flood.

Homeowners should find out if their current policy covers these disasters and to what extent. Many times, homeowners must purchase a rider for the additional coverage. Another issue is determining the cause of the damage. For instance, if flooding is caused by a hole in the roof from wind damage, the standard homeowner’s policy will cover it. On the other hand, if the damage was caused by flooding, it may not be covered.

Anderson also recommends homeowners sit down with their insurance agent and go over their policy. "Insurance agents aren’t just trying to get your money," he says. "Their job is to alert you to areas where you may lack coverage or not have adequate coverage."

A common misconception is that the average policy covers more than it really does. As Anderson explains, there is not just one home insurance policy, but several levels of coverage. Many people do not realize that distinction and assume all policies are the same. It's this incorrect information that can hurt them when they file a claim for damage done to their homes.

It's best not to wait until an event happens which causes damage to a home because then it is too late. Anderson also shares that homeowners don't need to wait until their policy renews to discuss the coverage with their agent. In fact, it's best not to wait, especially if they are going into a season (like this spring!) known for major weather events.

This study serves as a call to action for homeowners to prevent similar situations as were evidenced during Hurricane Harvey and other catastrophic events. It’s important to not be caught without the proper coverage should an incident occur.

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