Be alert to changes in your policy renewals that may limit damage from water to incredibly minuscule coverage or none at all.
When shopping for insurance, policyholders often tell their agents and insurance companies they want full and complete coverage if a loss occurs. Some policyholders are savvy to research the coverage they want to purchase the insurance to ensure that the policies fit their specific needs. Yet, some policyholders have very limited choices (if any) and insure their property with the only company that will give them insurance. And then you have the situation where your coverage significantly changes at renewal and the policyholder does not know or grasp the severity of the change.
As we have discussed before, insurance contracts are contracts of adhesion and the policyholder does not get to add in a paragraph or send over their draft of the contract to have the insurance company approve and bind it. The policy forms and endorsements are written by the insurance company. Policyholders need to be aware that not all business insurance at replacement cost or “all-risk homeowners policies” are created equal.
Be on the lookout for this People’s Trust policy change:
Effective June 15, 2016, they will exclude all water damage to homes that are older than 40 years old.
The policyholder can get an extremely limited amount of coverage for homes over 40. The sub-limit is 10,000.00 for water losses. Policyholders will be offered a “discount” to their premium if they don’t get the $10,000.00 endorsement but this not gift or favor to policyholders.
People’s Trust has been heavily criticized for not providing coverage or handling claims in a proper fashion. The company’s massive marketing mailer campaigns with cute puppies and babies fooled some those shopping for insurance but their service after the sale has been riddled with problems. Take time to research Rapid Response Team and you will see many complaints.