On Your Side: Home insurance policies could move to a one-percent deductible

SPRINGFIELD, Mo. (KY3)—If you have renewed your home insurance policy or are about to, your premiums are likely rising.

Insurers are working to find ways to put the cost of claims back on homeowners. More and more home insurance companies are moving to a one percent deductible on wind and hail claims. That means that if you have a $500,000 home, your deductible could be $5,000.

John Schaeffer with the Resource Center says that it is important for homeowners to read papers from the insurance companies that update them on their plans and the changes that insurance makes.

“Insurance companies, to keep from going broke or leaving the state, being in the negative, they are actually having the homeowners take on more payment and risk, so before you file a claim, make sure you know exactly what your deductible is on your wind and hail,” said Schaeffer.

If you have questions about the changes you read about on your policy, it is best to reach out to your local agent. Before you file a damage claim, a local qualified roofer needs to check your roof for damage.

“A lot of times people just grab that mail and go, oh, it’s junk, and throw it in the trash can. I know one company is sending out and raising that wind and hail one percent deductible,” said Schaeffer. “And if you don’t open that and realize that and then you have a wind hail claim, and you don’t know you have a three- or five-thousand-dollar deductible, that can be devastating to your banking account,” says Shaeffer.

The Better Business Bureau says our recent storms make this area a prime target for those looking to make a quick buck.

“Any time there is a storm or any kind of natural disaster, you are going to get scammers and unethical companies following in the wake, so to speak,” says Pamela Hernandez with the Better Business Bureau.

And do your research before you commit to a contract. “Consumers want to get things taken care of. If you have damage to your home or automobile or anything, you want to get it taken care of, but you don’t want to rush into that process. You want to do your research and carefully vet any contractor before you pay them anything or sign any kind of contract,” says Hernandez.

And never pay the full amount up front.

“When you are working with a contractor, of course, they may need a deposit to get started. So, the BBB recommends roughly a third down, a third about halfway through, and then the rest when the job is completed to your satisfaction.”

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