5 Reasons You May Have Bad Homeowners Insurance

Jim thought he had everything covered. His home, nestled in a quiet suburb of Atlanta, was his pride and joy. He had homeowners insurance and believed he was protected. One stormy night, a tree fell on his roof, causing big damage. Jim was shocked when his insurance company denied his claim, leaving him with a huge repair bill. It was then he realized his homeowners insurance wasn't as good as he thought.

Many homeowners, like Jim, don't realize their insurance isn't up to par until it's too late. Here are five reasons why you may have bad homeowners insurance and what you can do about it.

1. Low Coverage Limits

One of the main reasons your homeowners insurance might be bad is low coverage limits. If your policy doesn't cover the full cost of rebuilding your home, you're at risk. For example, if your house costs $300,000 to rebuild but your insurance only covers $200,000, you'll have to pay the difference.

​Tip: Make sure your policy covers the full replacement cost of your home. This means enough money to rebuild it from scratch if needed. Talk to your insurance agent to update your policy if needed.

2. Exclusions in the Policy

Many policies have exclusions, which are things the insurance won't cover. Common exclusions include natural disasters like floods or earthquakes. If you live in an area prone to these events, having a policy that excludes them can leave you vulnerable.
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Tip: Review your policy carefully. Ask your insurance agent to explain any exclusions. You may need additional policies or riders to cover specific risks, like flood insurance if you live in a flood zone.

3. High Deductibles

A deductible is the amount you have to pay out of pocket before your insurance kicks in. High deductibles can make it hard to get the help you need after a disaster. If you can't afford the deductible, you might not be able to repair your home.
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Tip: Consider lowering your deductible, even if it means slightly higher premiums. This way, you won't be stuck paying a large sum before your insurance helps out.

4. Poor Customer Service

Your insurance is only as good as the company behind it. If they have poor customer service, getting claims processed and paid can be a nightmare. Long wait times and unhelpful agents can add stress when you need help the most.

​Tip: Research insurance companies before buying a policy. Look for reviews and ratings from other customers. Choose a company known for good customer service and fast claim processing.

5. Not Keeping Your Policy Updated

Life changes, and so should your insurance policy. If you've made improvements to your home, started a home business, or bought expensive items, your insurance needs to reflect these changes. Otherwise, you might find out you're underinsured when you need to file a claim.
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Tip: Review your insurance policy regularly, especially after any major life changes. Keep your insurance agent informed about any updates or additions to your home and belongings.

Get Your Homeowners Insurance Coverage on Target

Having good homeowners insurance is important to protect your biggest investment. Don’t wait until it’s too late like Jim did. Make sure your policy has high coverage limits, covers all needed risks, has manageable deductibles, comes from a reputable company, and is regularly updated.
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Arrow Insurance Agency is here to help. Based in Loganville, we serve the greater Atlanta area, including Marietta and Alpharetta. Our goal is to provide you with the best insurance solutions to meet your needs. Contact us today to review your policy and make sure you're fully protected.

get your insurance coverage on target!

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Zaheed Hussain
​​Owner/Licensed Agent

Our aim is to hit the bullseye every time when it comes to providing our clients with the best Georgia home insurance coverage available at the best value. We also provide many other coverages for auto, business, life, and health. 

​Phone: (770) 692-7500
Email: [email protected]
Loganville, GA