If you’re a homeowner in Oklahoma, you’ve probably asked:
“Why does my home insurance premium increase every year?”
It’s one of the most common questions we receive at S&S Insurance Services.
While sometimes insurance companies do implement rate increases, many annual premium changes happen for a completely different reason — something called Inflation Guard.
Understanding how this works can help you make better decisions about your homeowners insurance coverage.
What Is Inflation Guard in Homeowners Insurance?
Inflation Guard (HO 04 46) is a homeowners insurance endorsement that automatically increases your coverage limits over time to reflect rising rebuilding costs.
It typically applies to:
Dwelling Coverage (Coverage A)
Other Structures
Personal Property
Loss of Use
Instead of waiting years to adjust coverage, Inflation Guard increases your limits automatically and continuously throughout the policy term based on a scheduled annual percentage.
This helps protect you from being underinsured.
Why Home Insurance Premiums Increase Each Year
When your dwelling coverage increases, your premium increases as well.
Here’s why:
If your home was insured for $300,000 last year and Inflation Guard increases it by 4%, your new dwelling limit becomes $312,000.
More coverage means:
Higher potential claim payout
Greater risk assumed by the insurance company
Adjusted premium to match the higher limit
This adjustment often happens even if there is no major rate change filed by the carrier.
So when homeowners see their home insurance premium increase every year, Inflation Guard is frequently a major factor.
Why Inflation Guard Is Important in Oklahoma
Construction costs in Oklahoma continue to rise due to:
Increased labor costs
Higher material prices
Roofing and lumber fluctuations
Changes in building codes
Storm-related demand after hail and wind events
If your coverage does not keep pace with rebuilding costs, you risk being underinsured at the time of a major loss.
And in Oklahoma — where severe weather claims are common — accurate replacement cost coverage matters.
Replacement Cost vs. Market Value
Many homeowners confuse market value with replacement cost.
Market value includes:
Land value
Location desirability
School districts
Replacement cost is simply the cost to rebuild the structure.
Inflation Guard focuses on keeping your replacement cost coverage accurate — not your home’s resale value.
Should You Remove Inflation Guard?
Some homeowners ask if lowering or removing Inflation Guard would reduce their premium.
Technically, yes.
But doing so may create a much larger financial risk if your home is not insured to current rebuilding costs.
The better approach is reviewing your dwelling limit annually with your agent to make sure:
The replacement cost estimate is accurate
The inflation percentage applied makes sense
Your coverage reflects today’s construction environment
Final Thoughts: Home Insurance Increases Are Not Always Random
If your home insurance premium increases each year, it is not necessarily “for no reason.”
In many cases, it is the result of:
Inflation Guard adjustments
Rising construction costs
Replacement cost updates
Homeowners insurance is designed to protect your largest asset. Keeping coverage aligned with rebuilding costs is critical.
If you would like a homeowners insurance review in Oklahoma, S&S Insurance Services is happy to walk through your policy and explain exactly how your dwelling coverage and premium are structured.
S&S Insurance Services
Oklahoma Independent Insurance Agency
Helping homeowners understand their coverage — not just their premium.
Author: Richard Shaw
🚨 Concealment or Fraud: The Fastest Way to Void Your Homeowners Coverage
S&S Insurance Social Media Posts
One of the most serious conditions in a homeowners policy is something called “Concealment or Fraud.”
If any insured intentionally:
Conceals or misrepresents a material fact
Engages in fraudulent conduct
Makes false statements related to the policy
👉 Coverage can be excluded for all insureds on the policy.
And this applies whether it happens before a loss or after a loss.
What Is a “Material Fact”?
A material fact is any information that could have caused the insurance company to:
Decline to insure the risk
Charge a higher premium
Offer different terms or deductibles
If the information would have changed underwriting — it matters.
Insurance Is Built on “Utmost Good Faith”
Insurance is a contract of utmost good faith.
That means:
The insurance company must act honestly and fairly.
The insured must provide accurate and complete information to the best of their knowledge.
The insurer relies on your answers when:
Issuing the policy
Setting your rate
Investigating a claim
If that trust is broken, coverage can be denied.
Let’s Talk About Quotes for a Minute
Every single day when people call us for quotes, we ask underwriting questions:
Who lives in the household?
Any prior claims?
Business use?
Pets?
Roof age?
Driving history?
Property updates?
Sometimes people are tempted to answer these questions the way they think will make the insurance cheaper.
But here’s the truth:
If someone provides information that isn’t accurate, they’re not hurting the agent. They’re not hurting the insurance company.
They’re only hurting themselves.
It’s not our role to accuse anyone of being dishonest. We document what we’re told and submit the application based on that information.
But when a claim happens, adjusters investigate. They verify facts. They pull reports. They ask questions.
If something surfaces that contradicts what was originally stated — that’s when problems begin.
And at that point, it’s no longer about price. It’s about coverage eligibility.
A Real-World Perspective
Insurance companies don’t deny claims lightly. Fraud must be proven. Adjusters analyze each case carefully.
But intentional misrepresentation is one of the quickest ways to jeopardize coverage entirely.
What This Means for You
When getting a quote or filing a claim:
Be accurate.
Be honest.
Don’t exaggerate.
Don’t guess — say “I’m not sure.”
Don’t let someone coach you into saying something that isn’t true.
Insurance is designed to protect you — but only when the information provided is truthful and complete.
Final Thought
The best way to protect yourself is simple:
Tell the truth upfront.
If the price changes because of it, at least you know your coverage is solid when you need it most.
If you ever have questions about how to answer something or whether something matters — call us. That’s what we’re here for.
— S&S Insurance Services
One of the most serious conditions in a homeowners policy is something called “Concealment or Fraud.”
If any insured intentionally:
Conceals or misrepresents a material fact
Engages in fraudulent conduct
Makes false statements related to the policy
👉 Coverage can be excluded for all insureds on the policy.
And this applies whether it happens before a loss or after a loss.
What Is a “Material Fact”?
A material fact is any information that could have caused the insurance company to:
Decline to insure the risk
Charge a higher premium
Offer different terms or deductibles
If the information would have changed underwriting — it matters.
Insurance Is Built on “Utmost Good Faith”
Insurance is a contract of utmost good faith.
That means:
The insurance company must act honestly and fairly.
The insured must provide accurate and complete information to the best of their knowledge.
The insurer relies on your answers when:
Issuing the policy
Setting your rate
Investigating a claim
If that trust is broken, coverage can be denied.
Let’s Talk About Quotes for a Minute
Every single day when people call us for quotes, we ask underwriting questions:
Who lives in the household?
Any prior claims?
Business use?
Pets?
Roof age?
Driving history?
Property updates?
Sometimes people are tempted to answer these questions the way they think will make the insurance cheaper.
But here’s the truth:
If someone provides information that isn’t accurate, they’re not hurting the agent. They’re not hurting the insurance company.
They’re only hurting themselves.
It’s not our role to accuse anyone of being dishonest. We document what we’re told and submit the application based on that information.
But when a claim happens, adjusters investigate. They verify facts. They pull reports. They ask questions.
If something surfaces that contradicts what was originally stated — that’s when problems begin.
And at that point, it’s no longer about price. It’s about coverage eligibility.
A Real-World Perspective
Insurance companies don’t deny claims lightly. Fraud must be proven. Adjusters analyze each case carefully.
But intentional misrepresentation is one of the quickest ways to jeopardize coverage entirely.
What This Means for You
When getting a quote or filing a claim:
Be accurate.
Be honest.
Don’t exaggerate.
Don’t guess — say “I’m not sure.”
Don’t let someone coach you into saying something that isn’t true.
Insurance is designed to protect you — but only when the information provided is truthful and complete.
Final Thought
The best way to protect yourself is simple:
Tell the truth upfront.
If the price changes because of it, at least you know your coverage is solid when you need it most.
If you ever have questions about how to answer something or whether something matters — call us. That’s what we’re here for.
— S&S Insurance Services
🌪 What To Do Immediately After an Insurance Loss
When a home insurance claim happens, emotions run high. But what many people don’t realize is that every homeowners policy includes specific “Duties After a Loss.”
These duties are not optional. If they are not followed — and the failure harms the insurance company’s ability to investigate — coverage can be denied.
Here are the eight required duties most policies include:
1️⃣ Provide Prompt Notice to Your Insurance Company
Report the loss as soon as reasonably possible. Delays can create coverage issues and make the investigation more difficult.
2️⃣ Notify Police if a Theft Occurs
If property is stolen, you must file a police report. This creates an official record of the incident.
3️⃣ Notify Credit Card or EFT Companies (If Applicable)
If credit cards or electronic funds transfer cards were stolen, contact the issuer immediately to limit fraudulent charges.
4️⃣ Protect Property From Further Damage
After a loss, you are responsible for preventing additional damage.
Examples:
- Tarp a damaged roof
- Shut off water to prevent further leakage
- Board up broken windows
Insurance covers sudden and accidental damage, not ongoing damage due to neglect.
5️⃣ Cooperate With the Insurance Company’s Investigation
You must work with your insurer during the claim process. This may include answering questions, providing documents, or assisting with inspections.
6️⃣ Prepare an Inventory of Damaged Personal Property
Create a detailed list of damaged or stolen items, including:
- Description
- Quantity
- Approximate age
- Estimated value
Photos and receipts are extremely helpful.
7️⃣ Show Damaged Property & Provide Documentation (If Requested)
If requested, you must:
- Allow the insurer to inspect damaged property
- Provide records or documents
- Submit to an Examination Under Oath (EUO) if required
An EUO is a formal recorded statement about the loss.
8️⃣ Provide a Sworn Proof of Loss Within 60 Days (If Requested)
If the insurance company requests it, you must submit a signed, sworn proof of loss within 60 days.
Why This Matters
Insurance policies are legal contracts. Following these duties helps:
- Speed up the claim process
- Prevent delays
- Protect your coverage
- Reduce misunderstandings
If you ever experience a loss, call your agent immediately. We can walk you through each step so nothing gets missed.
Preparation before a claim is what prevents problems during a claim.
– S&S Insurance Services
Why Insurance Covers “Sudden & Accidental” Damage — Not Wear and Tear
At S&S Insurance Services, one of the most common questions we hear is:
“My roof is 10–15 years old and has been through a lot of storms. Can I file a claim?”
This is where an important insurance principle comes into play:
🔑 Insurance is designed for sudden and accidental damage
It is not designed to pay for things that happen gradually over time.
🟢 What Insurance Does Cover
Insurance is meant for one identifiable event that causes damage.
Examples:
A specific hailstorm damages shingles
A tree limb falls on your roof during a windstorm
A pipe suddenly bursts and floods a room
Lightning strikes your home
These are:
✔ Unexpected
✔ Caused by a single event
✔ Not part of normal aging
That’s what a claim is for.
🔴 What Insurance Does Not Cover
Insurance does not cover:
Wear and tear
Deterioration
Aging materials
Ongoing exposure to weather
Maintenance issues
So when someone says:
“My roof has been through 10 years of wind and hail.”
That’s describing gradual deterioration, not a covered loss.
A 12-year-old roof that has slowly lost granules, dried out, curled, or weakened over time is considered maintenance, just like replacing tires on a car.
🏠 The Shingle Example (Most Common Situation)
Shingles are designed to withstand weather — but they still age.
What insurance looks for:
Damage tied to one specific storm date
Visible signs consistent with a single event (like hail bruising or wind creases)
What insurance will deny:
“It’s just old”
“It’s been through a lot of storms”
“It’s worn out”
That’s considered normal life cycle, not a loss.
⚠️ Why This Matters Before Filing a Claim
Many people don’t realize:
❗ Even a denied claim goes on your insurance history
❗ Claims history can raise your premiums
❗ Too many claims can make it harder to find coverage
Filing a claim when damage is actually wear and tear can hurt you more than help.
🗣️ How to Talk About Damage the Right Way
If you believe damage happened from a storm, here’s what helps:
Helpful to know:
Approximate date of the storm
What you noticed afterward (leak, missing shingles, dented vents, etc.)
Whether neighbors had storm damage
Avoid saying:
“It’s just old”
“It’s been bad for years”
“It’s worn out”
“It’s time for a new roof anyway”
Those statements point toward maintenance, not a covered event.
🛠️ Insurance vs. Homeownership Responsibility
Think of it this way:
Insurance Covers Homeowner Covers
Sudden storm damage Aging roof
Accidental pipe burst Old plumbing
Fire Worn-out wiring
Wind tearing off shingles Gradual shingle deterioration
Insurance is for unexpected loss, not expected upkeep.
🤝 Our Goal
Our job isn’t just to sell policies — it’s to help you understand:
✔ When a claim makes sense
✔ When it doesn’t
✔ How to avoid hurting your insurance record
If you’re unsure whether something is claim-worthy, talk to your agent first. A quick conversation can save you years of higher premiums.
“My roof is 10–15 years old and has been through a lot of storms. Can I file a claim?”
This is where an important insurance principle comes into play:
🔑 Insurance is designed for sudden and accidental damage
It is not designed to pay for things that happen gradually over time.
🟢 What Insurance Does Cover
Insurance is meant for one identifiable event that causes damage.
Examples:
A specific hailstorm damages shingles
A tree limb falls on your roof during a windstorm
A pipe suddenly bursts and floods a room
Lightning strikes your home
These are:
✔ Unexpected
✔ Caused by a single event
✔ Not part of normal aging
That’s what a claim is for.
🔴 What Insurance Does Not Cover
Insurance does not cover:
Wear and tear
Deterioration
Aging materials
Ongoing exposure to weather
Maintenance issues
So when someone says:
“My roof has been through 10 years of wind and hail.”
That’s describing gradual deterioration, not a covered loss.
A 12-year-old roof that has slowly lost granules, dried out, curled, or weakened over time is considered maintenance, just like replacing tires on a car.
🏠 The Shingle Example (Most Common Situation)
Shingles are designed to withstand weather — but they still age.
What insurance looks for:
Damage tied to one specific storm date
Visible signs consistent with a single event (like hail bruising or wind creases)
What insurance will deny:
“It’s just old”
“It’s been through a lot of storms”
“It’s worn out”
That’s considered normal life cycle, not a loss.
⚠️ Why This Matters Before Filing a Claim
Many people don’t realize:
❗ Even a denied claim goes on your insurance history
❗ Claims history can raise your premiums
❗ Too many claims can make it harder to find coverage
Filing a claim when damage is actually wear and tear can hurt you more than help.
🗣️ How to Talk About Damage the Right Way
If you believe damage happened from a storm, here’s what helps:
Helpful to know:
Approximate date of the storm
What you noticed afterward (leak, missing shingles, dented vents, etc.)
Whether neighbors had storm damage
Avoid saying:
“It’s just old”
“It’s been bad for years”
“It’s worn out”
“It’s time for a new roof anyway”
Those statements point toward maintenance, not a covered event.
🛠️ Insurance vs. Homeownership Responsibility
Think of it this way:
Insurance Covers Homeowner Covers
Sudden storm damage Aging roof
Accidental pipe burst Old plumbing
Fire Worn-out wiring
Wind tearing off shingles Gradual shingle deterioration
Insurance is for unexpected loss, not expected upkeep.
🤝 Our Goal
Our job isn’t just to sell policies — it’s to help you understand:
✔ When a claim makes sense
✔ When it doesn’t
✔ How to avoid hurting your insurance record
If you’re unsure whether something is claim-worthy, talk to your agent first. A quick conversation can save you years of higher premiums.
Classic Car Insurance vs. “Just an Old Car”: What You Need to Know Before You Switch
Every year, we receive calls from people asking about classic or collectible car insurance.
In many cases, the vehicle isn’t actually collectible—it’s simply older and not driven very often.
People often tell us:
- “My car is old, so I should put it on a classic policy.”
- “I don’t drive it much.”
- “A friend told me it would be cheaper.”
- In some unfortunate cases, another agent even suggested it.
While classic car insurance can be an excellent option when used correctly, it is often misunderstood—and sometimes applied in ways that can create serious coverage gaps.
Why Classic Car Insurance Is Less Expensive
Classic or collectible auto insurance typically costs less than a standard auto policy because it is written for lower-risk usage.
These policies are generally intended for vehicles that:
- Are not used as daily drivers
- Are driven infrequently
- Are properly stored
- Are owned by someone who has another primary vehicle
Because the insurance company expects very limited use, the premium is lower.
However, that lower cost comes with strict eligibility and usage rules.
The Critical Difference: Policy Language
An auto insurance policy is a legal contract between you and the insurance company.
Classic and collectible car policies often contain language stating that coverage may not apply if:
- The vehicle is used as your primary means of transportation
- The vehicle is driven while your primary vehicle is in the shop or otherwise unavailable
- The vehicle is used for regular errands, commuting, or daily activities
These exclusions are often written directly into the policy—even if they were never clearly explained at the time of purchase.
That means a claim could be denied based solely on how the vehicle was being used at the time of the loss.
“But My Agent Said It Was Fine…”
If you are advised to insure your primary vehicle on a classic or collectible policy, it’s important to ask some direct questions:
- Does this policy exclude coverage if this vehicle is my primary transportation?
- Does it exclude coverage if I’m using it because my other vehicle is out of service?
- Can you show me where this is addressed in the policy itself?
If you are told there are no exclusions, we strongly recommend:
- Getting that response in writing
- Requesting a copy of the actual policy
- Reviewing the usage and eligibility sections yourself
Claims are settled based on what the policy says, not what was discussed verbally.
How Our Agency Can Help
Our approach is simple: education first.
We are always happy to:
- Review your current auto policy
- Determine whether you truly qualify for classic car insurance
- Explain the differences between standard auto and collectible policies
- Help you avoid coverage gaps that could cost far more than the premium savings
If you would like help reviewing your policy—or just want a second set of eyes—we would be glad to help you determine whether a classic car policy is truly the right fit for your situation.
Insurance should protect you when it matters most—not surprise you after a loss.
Why You Must List All Household Members on Your Auto Insurance Policy
Did You Know? Your Insurance Coverage Could Be at Risk!
Many people believe that permissive use automatically covers any driver who occasionally borrows a family vehicle. But insurance policies have changed! If you don’t list all household members over the age of 14, your vehicle damage claim could be denied—even if it’s your own child behind the wheel.
What Changed? New Insurance Rules You Need to Know
Most insurance companies now require all household members over 14 to be disclosed on your policy. Here’s why:
✅ Unlisted household members may not be covered for vehicle damage.
✅ Oklahoma law still requires minimum liability coverage to others, but beyond that, you could be paying out-of-pocket.
✅ Some insurers now apply “step-down limits” to permissive drivers. That means if someone outside your household borrows your car and causes an accident, your insurance might only cover state minimum liability limits, even if you have much higher coverage.
What Happens If You Don’t Disclose a Household Member?
If an unlisted household member drives your car and has an accident:
- Your vehicle damage claim may be denied—you’d have to pay for repairs or replacement yourself.
- Your insurer must still pay at least Oklahoma’s state minimum liability limits ($25,000 per person, $50,000 per accident) for injuries and damages to others, but no more than that.
- If your liability limits are higher than the minimum, your insurance company may not honor the extra coverage.
💡 Example: If you have $250,000 in liability coverage, but your unlisted child causes an accident, the insurance company may only pay the state minimum of $25,000 per person—leaving you responsible for the rest!
How to Protect Yourself
🔹 List all household members age 14+ on your policy. Even if they don’t drive, they need to be designated as rated, non-rated, or excluded.
🔹 Check your policy for step-down limits on permissive use drivers.
🔹 Talk to your agent to make sure you’re fully covered!
Final Thoughts
Insurance policies are always evolving, and what worked in the past might not protect you today. If you haven’t reviewed your coverage recently, now is the time!
📞 Need a policy review? Contact us today!
“Apples to Apples” Home Insurance Quotes? Not So Fast! 🍏🚫
Are You Really Getting the Best Home Insurance Deal?
Shopping for home insurance can feel overwhelming, especially with rising premiums since 2022. Many homeowners are searching for lower rates, and unfortunately, some insurance agents take advantage of that by misrepresenting coverage to appear cheaper.
Recently, one of our clients reached out after receiving a quote from another agent that promised huge savings—but when we reviewed it, we found major coverage gaps that could cost them thousands in a real claim.
If you’re comparing home insurance quotes, this story might save you from making a costly mistake.
The $800 “Savings” That Wasn’t a Savings at All
A long-time client of ours emailed us about their home insurance renewal. Their rate had increased, like most policies these days, so they decided to shop around.
Another agent told them:
✅ They could save $600 with an “apples to apples” policy comparison
✅ They could save an additional $200 if they reduced their home’s insured value from $340,000 to $300,000
That’s a total of $800 in savings per year! Sounds great, right?
Not so fast. 🚨
The client wisely sent us the new quote to review, and here’s what we found:
5 Hidden Coverage Gaps That Could Cost You Thousands
Despite claiming to be “apples to apples,” the new quote was anything but. Here’s what was missing or reduced:
1️⃣ No Extended Replacement Cost Coverage
This is one of the most important coverages on a home insurance policy. It ensures that if rebuilding costs increase due to inflation or labor shortages, your insurance will still cover it.
Without this coverage, if rebuilding costs exceed your policy limits, you’re paying out of pocket.
2️⃣ Lower Coverage Limits Across the Board
The quote reduced liability limits, personal property protection, and other essential coverages, exposing our client to higher risks in a claim situation.
3️⃣ Five Essential Coverages Were Missing
The new policy excluded key coverages that the client’s existing policy included. This could mean no coverage for water damage, identity theft protection, or additional living expenses if they needed to temporarily relocate after a disaster.
4️⃣ Lowered Dwelling Coverage to Cut Costs
This agent manipulated the home’s insured value by downgrading materials in the quote.
5️⃣ Misrepresented Home Features to Justify a Lower Value
Our client had custom kitchens and bathrooms with high-end materials. However, the agent classified their home as having “standard builder-grade materials”—cheap countertops, prefab cabinets, and lower-quality finishes.
🚨 Why is this a problem? Come claim time, the insurance company would only pay for builder-grade replacements, NOT the custom materials the homeowner actually has.
How to Compare Home Insurance Quotes the Right Way
If you’re shopping for home insurance in the state of Oklahoma, here’s how to spot misleading quotes and protect yourself:
✅ Ask for a detailed breakdown of coverage (not just the price!)
✅ Look beyond the premium – cheaper isn’t always better!
✅ Check for missing or reduced coverages
✅ Verify that your home’s features are correctly listed
✅ Work with a trusted agent who explains everything clearly
💡 Pro Tip: If a quote sounds too good to be true, let an expert review it before you switch!
The Hidden Danger of “Cheaper” Insurance
In the event of a disaster, the wrong insurance policy could leave you paying out of pocket for repairs, legal claims, or even rebuilding your home.
Choosing a policy based only on price can cost you thousands when you actually need to file a claim.
That’s why it’s essential to work with an insurance agency you trust—one that ensures you have the right coverage before it’s too late.
Final Thoughts: Don’t Let a Low Price Fool You
The biggest lesson from this story? Not all insurance policies are created equal.
A lower price often comes with reduced coverage, and in the long run, a “cheaper” policy could cost you way more when a claim happens.
💡 Need a second opinion on your insurance quote?
Send it our way! We’re happy to review it at no cost and make sure you’re truly protected.
The Cost of Cutting Corners on Insurance
At our agency, we recently worked on a quote for a homeowner who ultimately decided not to purchase from us. The reason? They didn’t like what we had to tell them. But in insurance, the truth isn’t always what people want to hear—it’s what they need to hear.
Roof Coverage: The Hidden Risk
The first red flag we noticed in their current policy was that their shingles were subject to a roof payment schedule. This meant that if they ever needed to file a roof claim, their payout would be depreciated by over 50%, on top of their deductible.
We explained that their current insurance company actually offers an endorsement for full replacement cost, which would have protected them from this costly depreciation. However, they quickly told us that they used to have that endorsement—but after a rate increase last year, they called their agent to lower their premium. Their agent removed the endorsement, without explaining that it directly affected their roof coverage. The client mistakenly believed it only inflated the home’s insured value and didn’t realize the hidden cost of this change.
Underinsured by Over $100K
Unfortunately, that wasn’t the only issue. After reviewing their policy further, we discovered that their home was underinsured by over $100,000.
Their response? They didn’t believe it would cost that much to rebuild, so they were comfortable leaving it as is.
But here’s the reality: People almost always underestimate the cost to rebuild their home.
Most homeowners arguing these numbers have never built or rebuilt a home. Even as an insurance professional, I wouldn’t make an educated guess—I rely on Reconstruction Cost Estimators. These are tools purchased by insurance companies from independent organizations specializing in construction and labor data. These estimators ensure that homes are properly insured to value based on current material and labor costs.
The Real Takeaway
So what’s the lesson here?
If you call your agent and ask them to lower your rate, make sure you understand what coverages are being removed.
Many agents focus more on keeping your business (and their commission) than ensuring you have proper protection.
The cheapest policy isn’t always the best policy—it’s about making sure you’re covered when it matters most.
Get a Coverage Checkup
Your home is one of your biggest investments. Are you confident it’s properly insured?
If you’re unsure, let’s talk. We can review your policy and help make sure you’re protected, not just paying premiums. Contact us today for a coverage review!
Roof Coverage: The Hidden Risk
The first red flag we noticed in their current policy was that their shingles were subject to a roof payment schedule. This meant that if they ever needed to file a roof claim, their payout would be depreciated by over 50%, on top of their deductible.
We explained that their current insurance company actually offers an endorsement for full replacement cost, which would have protected them from this costly depreciation. However, they quickly told us that they used to have that endorsement—but after a rate increase last year, they called their agent to lower their premium. Their agent removed the endorsement, without explaining that it directly affected their roof coverage. The client mistakenly believed it only inflated the home’s insured value and didn’t realize the hidden cost of this change.
Underinsured by Over $100K
Unfortunately, that wasn’t the only issue. After reviewing their policy further, we discovered that their home was underinsured by over $100,000.
Their response? They didn’t believe it would cost that much to rebuild, so they were comfortable leaving it as is.
But here’s the reality: People almost always underestimate the cost to rebuild their home.
Most homeowners arguing these numbers have never built or rebuilt a home. Even as an insurance professional, I wouldn’t make an educated guess—I rely on Reconstruction Cost Estimators. These are tools purchased by insurance companies from independent organizations specializing in construction and labor data. These estimators ensure that homes are properly insured to value based on current material and labor costs.
The Real Takeaway
So what’s the lesson here?
If you call your agent and ask them to lower your rate, make sure you understand what coverages are being removed.
Many agents focus more on keeping your business (and their commission) than ensuring you have proper protection.
The cheapest policy isn’t always the best policy—it’s about making sure you’re covered when it matters most.
Get a Coverage Checkup
Your home is one of your biggest investments. Are you confident it’s properly insured?
If you’re unsure, let’s talk. We can review your policy and help make sure you’re protected, not just paying premiums. Contact us today for a coverage review!
