The Bottom Line on Homeowners Insurance Myths

    STAMFORD, CT, October 02, 2015 /24-7PressRelease/ -- How well are you and your most important asset- your home- protected by your homeowner's insurance policy? With all the legalese written into these policies, few of us truly know what kind of coverage we have. Is your home covered for a flood? A wildfire? What kind of deductible do you have in the case of a natural disaster like a hurricane or tornado? Are there limits for the types of repairs that will be covered? Can the insurance company determine the type of materials used to make repairs?

A hurricane, a fire, or any major disaster can literally destroy your personal financial future. However, the right insurance coverage can save you. In the October 1st issue, Bottom Line Personal interviewed J. Robert Hunter, director of insurance for the Consumer Federation of America, a nonprofit consumer advocacy organization, in Washington, DC to discover the insurance industry myths that you need to know.

Here are the biggest myths that all homeowners must be aware of according to Hunter:

- MYTH: If your home is destroyed, your insurance will pay the total cost to rebuild it.
Full replacement cost coverage bit the dust in the wake of Hurricane Andrew back in 1992. Now coverage for most policies is listed as the "coverage amount" which doesn't cover things like sky rocketing prices for labor and supplies as a result of 'demand surge' after a major event. Net-net: The amount you think will cover rebuilding your house will not if labor and supplies skyrocket.

- MYTH: Homeowners must hire a contractor based on the amount the insurer is willing to pay.
Just because your insurer says your home can be repaired for $500 and the contractor you chose says he will charge you $1,000 you have the right to request more money from the insurance carrier. Hunter advises documenting every step of your request and if necessary having the contractor call the insurer on your behalf. He also recommends putting everything in writing and sending it to the claims manager since, according to Hunter, insurance executives often back down when they are dealing with a savvy policyholder.

- MYTH: Homeowner's insurance will pay the bill if someone is injured on your property.
With the increase of home offices, it is important to note that most policies do not cover injuries for people who come to a home office for business purposes. It is necessary to have a commercial liability policy or add a rider for a home business to your policy. If clients, employees or delivery people visit the property for business reasons getting this additional coverage is vital.

"I hate to see people suffer needlessly, and that includes getting caught short after a disaster because the insurance contract was too complicated to understand or someone simply was not aware of the change in policy or the law. At Bottom Line, INC. we want you to live your best, informed life. Protecting yourself, your family and your home with the proper insurance is essential. By cutting through the legalese and actually seeing what your coverage includes should a disaster occur, you would know exactly what you are entitled to and what you can expect. Helping people be prepared should disasters occur is just one of the ways Bottom Line Inc. helps people live a better life. The last thing you want to learn the morning after you see you home go up in flames is that you are not properly insured," comments Sarah Hiner, CEO and President, Bottom Line, INC. "We encourage you to dig out your homeowner's policy from your files today, please read it and call your agent or insurance company and review it with them to be sure you fully understand every aspect of your coverage. Get answers to all of your concerns and questions."

In addition to 5 Myths About Homeowners Insurance from J. Robert Hunter, the October 1st issue of Bottom Line Personal gives an insight to the ugly truth about cholesterol-lowering drugs; lessons from financial experts on their worst money mistakes; and how scammers are targeting online daters.

About Bottom Line Personal

Bottom Line Personal is the #1 source for expert answers to life's many challenges. Our mission is to provide consumers with easy to understand, easy to read and easy to follow information to protect their health, their wealth, and help them live happier lives. Bottom Line works closely with our carefully selected team of top experts from academia, business, and award winning authors to synthesize today's complex issues and provide simple steps to improve the lives of our millions of customers. For the latest expert advice, visit bottomlinepersonal.com.

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