Early summer begins severe storm season here in Central Indiana as we were reminded recently. Some foul weather arrived during the mid-point of the COVID stay-at-home order and caused damage to many homes. The Wharton & Power Insurance Team has been handling clients’ claims but we have also been contacted by people who are unfortunately now figuring out that their insurance-in-a-box policies are not serving them well.
We see two starting points for insurance claims: either a homeowner notices that a neighbor is having their roof inspected, decides to do theirs too, and finds they have damage or a week after a large storm interior issues pop from roof leaks. Either way, after the roofing company makes an assessment, an insurance adjuster will visit the property to determine coverage. However, some people are finding out that just because their neighbor’s roof was deemed a loss does not mean theirs will – the result depends upon the adjuster’s determination. Many adjusters work directly for particular insurance companies, creating a conflict of interest.
Another issue many homeowners face is separate deductibles. We received a call from a person who found out he had a different deductible for hail claims; rather than the $1,000 he usually pays, the hail deductible was half percent of his dwelling coverage. So, his $800,000 house meant he had a $4000 deductible! His insurance-in-a-box policy did not serve him well. His broker was limited by one company’s offerings so his best interests were not included in the decision-making process. Needless to say, he has now become a client of Wharton & Power Insurance.
When homeowners work with an independent insurance broker like us, they get the power of choice. We work to understand the specifics for each client and find the best option for their situation. We then help them understand what they are purchasing so there are no nasty surprises. Our options may not be the lowest premium per month, but when a claim occurs, they end up being far cheaper than the one-size-fits-all options. We pride ourselves on the long-term relationships we have created with our clients over the last 30 years. One reason they stay with us is that when they need to use their policies, we and the companies we represent are there to help, not hinder.