False Sense of Security

It is often thought that when it comes to homeowners’ insurance, every policy is as good as the next. That is a dangerous misconception.

The truth is, three factors are critical to understanding the market and gaining the right coverage:

1. Some brokers sell substandard policies. They can be inexpensive and are offered as “good buys,” when in fact, they are often woefully inadequate to cover you for the losses you may sustain.
2. HO3 policies are widely touted as “the gold standard.” Yes, they are the right policies for most homeowners, but many high-end homeowners with homes valued at $3 million or more find out too late that the HO3 did not cover them for a large loss.
3. For this upper end of the market — homeowners who often have expensive assets — we often recommend custom policies or special coverage forms that do not carry the HO designation. They are offered by a handful of premiere carriers, such as Chubb, Fireman’s Fund and Chartis, and can be written with strong protective features, such as:

• Assurance that in the event of a true disaster, your home will be rebuilt as it was, regardless of the cost;

• In the event of a total loss from a fire, you can be paid for the value of the home and NOT have to rebuild it;

• D&O protection if you are an officer or director of a non-profit association or your cooperative board.

Are you protected from all of the major risks that can take a toll on your personal life, your wealth and your business? Given that so much of the risk you face is virtually invisible or unthinkable until it strikes, it is hard to quickly identify the true extent of your exposure. Answer the following yes/no survey questions to analyze your immediate risk – click here.