60% OF HOMES IN THE U.S. ARE UNDERINSURED. When you file a claim, will your homeowners policy cover the loss?
The most common Texas homeowners insurance policy, is known as “Form A”. There are three major area of coverage:
Coverage A: For your residence and out-buildings (garage, sheds, barns).
Coverage B: Your personal property, located on and off premises.
Coverage C: Personal liability. This would cover a situation where someone sues you for personal injury or property loss that occurs because of your conduct, or a condition on your property. A common example would be if someone is injured in a slip and fall accident on your property.
Coverage D: Medical payments to persons who are injured on your property.
Sounds good! But like Swiss cheese all this coverage has holes, the reality being more holes than cheese.
70% or more of the homeowners policy language is what it will not cover, and limitations of coverage.
Insurance companies (“carriers”) have added additional limitations and exclusions in that part of the Policy labeled “Endorsements”. Endorsements are changes in the Form A language. Some of the endorsements add coverage, but generally the majority take away coverage, and add limitations or conditions.
A good summary of the exclusions in a policy can be found at:
When you are buying insurance or renewing a policy, it is important to fully understand what is covered, and more importantly, what’s not covered. If your situation requires coverage, where there may be exclusions of limitations (jewelry, antiques, business equipment), you can often get additional coverage for a modest cost. The first step is to fully understand the ‘standard’ policy. This is a time consuming process. When you file a loss claim, you want to know there will be coverage. This is accomplished BEFORE the loss occurs, most importantly when you purchase a policy or at renewal time.
If you have questions about your insurance coverage, or assistance in filing a claim after a loss, contact the Law Office of Elliott Klein, PLLC.
1Policygenius; Homeowners Insurance Statistics, July 24, 2019; https://www.policygenius.com/homeowners-insurance/homeowners-insurance-statistics/