What Are Policy Exclusions?

Understanding Policy Exclusions is Your Best New Year’s Resolution

As the year winds down and we start thinking about everything we want to change or improve in the new year—like exercising more, mastering new skills, or decluttering our homes—why not add one more goal to your list? How about gaining a solid understanding of your insurance policy and learning what’s covered? Believe it or not, policy exclusions can be a significant blind spot, and they can leave you in the lurch when the unexpected happens.

So, What Are Policy Exclusions?

Policy exclusions are specific conditions or situations that your insurance policy does not cover. Think of them as the “not-so-fun” fine print in a contract. Policy exclusions specifically outline what is and is not covered and help define the policy’s scope of protection. Understanding these exclusions may help you avoid nasty surprises and, ultimately, can help you make better decisions regarding additional coverage or preventive measures.

Why Do Policy Exclusions Exist?

Why are exclusions even a thing? Can’t insurance carriers cover everything? Great questions! Here’s why insurers include exclusions in their policies:

The Most Common Exclusions You Should Know About

As you reflect on your insurance needs heading into the new year, it’s crucial to be aware of the most common exclusions in insurance policies. In regions prone to storms, one would expect insurance policies to be tailored to the risks property owners may face. Unfortunately, it’s become more and more common for exclusions to be added to policies from one term to the next. Ashley Workman, Sr Paralegal and Licensed Public Adjuster, has found an increasing number of exclusions in Florida policies. 

Here are a few exclusions that can catch you off guard:

1. Natural Disasters

Events like floods, earthquakes, and hurricanes are often excluded from standard homeowners’ insurance policies. If you live in an area prone to these, make sure to purchase additional coverage or a separate policy.

2. Wear and Tear

Damage caused by the gradual deterioration of property over time—like an aging roof or plumbing issues—often isn’t covered. Insurers exclude this to avoid covering damage that regular maintenance could have prevented.

3. Negligence

If you fail to maintain your property or take reasonable precautions to prevent damage (for example, ignoring a known leak), you might find your claim denied. Preventative care can save you from the headaches of negligence exclusions.

4. Acts of War or Terrorism

Most policies exclude damage from war or terrorism. Special coverage may be required if you’re concerned about these risks.

5. Intentional Acts

Insurance doesn’t cover damage caused intentionally by you or someone acting on your behalf. It’s all about preventing fraud.

6. Government Action

Government actions, such as property seizures or destruction for development.

How to Tackle Policy Exclusions

So, how can you ensure that you’re properly covered despite these exclusions? Here are a few proactive steps you can take as you head into the new year:

A New Year’s Resolution You Can’t Afford to Miss

As we wrap up the year and start thinking about our resolutions for the new year, let’s make one of those goals to understand your insurance policy. It’s a small effort that can make a huge difference in managing your risks and ensuring your protection. Take the time now to review your exclusions, ask questions, and make sure your coverage is up to snuff for 2025.

policy exclusions

Policy exclusions may seem like a boring detail in the grand scheme of things, but they can have a huge impact when things go wrong. By understanding these exclusions and proactively addressing them, you can confirm that your insurance coverage actually has your back. So, make it a point this year to tackle your policy exclusions head-on. The new year is the perfect time for a fresh start—why not start with your insurance?

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Are You Underinsured?

The Silent Risk Lurking in Your Business Insurance

When was the last time you reviewed your property insurance policy? If you’re like most business owners, the answer is probably “too long ago.” Unfortunately, complacency could cost you everything. Recent market changes—skyrocketing construction costs, supply chain delays, and increasing natural disasters—mean your coverage from two years ago may not cover you today.

In the last two years, the cost of construction has exploded. According to a report by the Associated General Contractors of America, construction material costs rose 10.1% in 2022 alone. This sharp spike could mean the cost to rebuild or repair your property is significantly higher than when you first signed your policy. If your policy was written based on outdated values, you could pay out of pocket to cover the difference. There is no need to panic, though; our team is here to give you the tools to protect your property and your business best. 

Understanding Your Insurance Policy

What “Replacement Cost” Really Means (And Why It’s Misleading)

Many business owners falsely believe replacement cost coverage will cover the total cost of rebuilding their property, regardless of market changes. In reality, the term “replacement cost” only applies to the maximum amount of coverage explicitly listed in your policy. It doesn’t automatically adjust for inflation or increasing material costs. If the limits in your policy haven’t been updated to reflect current market values, you’re left exposed. 

The Underinsurance Epidemic in Commercial Properties

According to a study by Marshall & Swift/Boeckh, 75% of commercial properties in the United States are underinsured by an average of 40%. This staggering statistic means most businesses facing a catastrophic loss will find themselves unable to rebuild or repair their property fully. Even worse, those same businesses might not even realize they’re underinsured until they file a claim—potentially leaving them on the hook for tens or hundreds of thousands of dollars in unexpected costs.

No business or person should have to go through this. While our current insurance climate may not be in favor of the insured, Premier Claims is here to fight for your right to a fair claim and an adequate policy.

When Disaster Strikes

Natural disasters aren’t a hypothetical risk. In 2024 alone, there have been 20 confirmed weather/climate disaster events in the United States, “with losses exceeding $1,000,000,000 each,” according to the National Centers for Environmental Information. This includes everything from hurricanes and floods to wildfires and tornadoes—events that often devastate businesses and lead to major insurance claims.

Unfortunately, underinsured businesses are far less likely to recover. The Federal Emergency Management Agency (FEMA) estimates 40% to 60% of small businesses never reopen after a disaster. For those with insufficient coverage, the financial burden is simply too great.

Updating Your Policy Fell Through the Cracks

Running a business is no small feat. With countless responsibilities on your plate—handling operations, growing your customer base, and managing employees—reviewing your insurance policy typically doesn’t make the top of the to-do list. And that’s completely understandable.

For many business owners, the insurance policy they signed years ago feels like a safety net. It’s easy to assume that it will continue to protect your business, no matter how much time passes or how the market changes. After all, you should be able to trust your insurance carrier has your best interest in mind. At least, you would think!

The problem is that policies don’t automatically update to reflect your property’s changing needs. It’s not your fault if you didn’t know; no one’s given you a reason to look. 

 Regularly reviewing your policy might seem unnecessary, especially if you’ve never experienced issues with your carrier. With the rapid changes in the industry and the increasing frequency of natural disasters, we recommend an annual review of your coverage to keep up with reality.

The Real Solution: Regular Policy Reviews

The good news? Preventing underinsurance is relatively easy. Regular policy reviews, ideally every year, ensure your policy reflects the current needs of your property, thereby keeping you and your business protected.

Our team of legal professionals provides complimentary policy reviews to try to identify any gaps in your coverage. If necessary, it may be worth discussing adding an Inflation Guard Endorsement and ACV coverage to your policy. 

Inflation Guard Endorsement

A rider that automatically adjusts your policy limits to account for rising construction costs.

Actual Cash Value Coverage

A policy provision that compensates policyholders for the current market value of damaged or lost property, rather than replacement cost. ACV takes into account depreciation, meaning the payout reflects the item’s value at the time of the loss. 

Take Action Before It’s Too Late

Underinsurance is a risk no business can afford to ignore. The consequences of insufficient coverage are severe—from devastating financial losses to permanent business closure. Rising construction costs, natural disasters, and the complexities of modern insurance policies make reviewing and updating your coverage more important than ever.

Not sure if you’re underinsured? Don’t wait until the next disaster to find out.

Contact our team today for a free policy review!

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How Climate Drives Insurance Rates and Property Damage

How Climate Drives Insurance Rates and Property Damage

Weathering the Unexpected

In the wake of recent storms, many property owners are realizing how unpredictable the weather—and their insurance coverage—can be. Severe weather events are becoming more frequent and more destructive, pushing property owners and insurers to the brink of financial strain. Understanding the relationship between climate risks and property insurance premiums is crucial for anyone looking to protect their property and finances best. 

The Increasing Frequency and Severity of Natural Disasters

It’s no secret natural disasters are occurring more frequently. According to the National Oceanic and Atmospheric Administration (NOAA), the U.S. experienced 18 weather-related disasters in 2022, each causing at least $1 billion in damage, tying 2022 with 2011 and 2017 for the third-highest number of such events. This continues a trend of increasing disaster frequency and severity driven by factors like higher temperatures and extreme weather events.

The Impact of Climate Risks on Property Insurance Costs

Areas prone to natural disasters, such as hurricanes, wildfires, and tornadoes, are seeing significant increases in their insurance premiums. The Insurance Information Institute (III) reports that average home insurance premiums have risen by about 7% annually since 2017. The New York Post reported, “At $11,759, Florida has the highest average home insurance in the nation. In 2023, Floridian homeowners paid an average of $10,996 for coverage.” States like Nebraska, Oklahoma, and Louisiana also experience high insurance costs due to their exposure to tornadoes and hailstorms. 

The Cost of Rebuilding is Rising

One of the primary reasons for rising insurance costs is the increasing cost of rebuilding homes after disasters. According to the National Association of Home Builders (NAHB), “Building materials prices are up 19.2% year over year and have risen 35.6% since the start of the pandemic.” This increase, paired with labor shortages, is driving up insurance premiums as insurers adjust for the higher claims payouts required for repairs. 

Credit Scores—An Overlooked Factor in Insurance Premium Rates

Beyond the risks of the climate driving insurance rates, your credit score plays a surprisingly large role in determining your insurance rates. Insurers often use credit-based insurance scores to assess the likelihood of filing a claim. Nerd Wallet found “that a person with good credit would pay $1,915 per year for homeowners insurance, on average. But in most states, someone with poor credit would see an average premium of $3,320 per year — more than 73% more.” This factor means that even if you live in a lower-risk state, a low credit score can still result in significantly higher premiums.​

Documenting Damage is Essential for Claim Success

When disaster strikes, your ability to document damage could be the difference between a fair payout and being left to shoulder repair costs on your own. Claims are often underpaid or denied due to poor documentation. Insurance carriers often seek ways to minimize payouts when evidence is lacking. Our team is here to help you set a strong foundation for your claim—starting with proper and thorough documentation. Contact our team today for claims assistance!

Push for Fair Treatment

Many property owners don’t realize that they can negotiate their insurance claims. A significant number of people who accept their insurer’s first settlement offer end up with less than the full value of their claim. This is where public adjusters come in. A public adjuster represents the policyholder—not the insurer—and can help fight for you to receive the payout you’re entitled to per your policy. They are skilled at negotiating with insurance carriers and often help policyholders recover more than they would on their own.

Planning for the Future

The rising cost of insurance and increasing frequency of natural disasters means property owners need to take a proactive approach to protecting their property. Understanding how local climate risks, insurance regulations, and economic trends impact your premiums will help you make better decisions. Consider reviewing your policy annually and consult with professionals to ensure you have adequate coverage for the specific risks in your region. 

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Nebraska’s Property Insurance Crisis

Nebraska’s Property Insurance Crisis

How Hailstorms and Tornadoes are Driving Premiums Through the Roof 

Nebraska’s weather can be downright relentless. With tornadoes and hailstorms frequently appearing each season, the aftermath often leaves property owners grappling with soaring insurance premiums. While we can’t ignore the power of Mother Nature, do insurers really need to pass every last cent of their costs onto you? Spoiler alert: they don’t.

The Storms Aren’t Slowing Down

Nebraska has always been a storm-prone state, but in recent years, the frequency and intensity of hailstorms and tornadoes have hit record highs. The Center for Disaster Recovery stated, “As of September 18, 2024, there have been 1,437 confirmed tornadoes.” Nebraska ranks among the “top five most impacted regions, alongside Iowa, Texas, Missouri, and Oklahoma,” as reported by 11 Alive. Hailstorms, notorious for causing costly damage to roofs, vehicles, and properties, have also been relentless. Since 2020, Nebraska has averaged 50 days of severe hailstorms each year, one of the highest in the nation.

What Does This Mean for Your Insurance Premiums?

Insurance carriers justify premium hikes by pointing fingers at these natural disasters, but is that the whole story? Nebraska Public Media spoke with Chip Bullock, an agent in central Nebraska, who “said he’s seen premiums increase rapidly in the last few years, by between 10% and 40%.” Insurers claim it’s all due to the high number of storm-related claims. But here’s the kicker: while storm frequency is up, insurers are also racking profits by leveraging reinsurance and passing costs along to you. It doesn’t stop there—many carriers are notorious for using delay, deny, and defend tactics to avoid paying out claims altogether. 

The Passive-Aggressive Reality of “Risk Management”

Let’s be honest. Insurance carriers love to talk about “risk” when it comes to raising your rates. Yet, when you file a claim, they’re suddenly not so generous, are they? It’s almost as if they prefer collecting premiums without paying out. According to experts, insurers have a history of using reinsurance policies that protect them—not you—from catastrophic losses. So, while you’re paying more, they’re quietly pocketing their share. 

Make the Most of Your Policy

So, what should a Nebraska property owner do in the face of skyrocketing premiums? Well, start by evaluating your current policy. Many property owners are underinsured, but unfortunately, insurance carriers won’t volunteer that information.

Some insurance carriers have begun to exclude wind coverage, which could be a significant setback for Nebraska policyholders. To make matters worse, Insurance carriers aren’t communicating this coverage change when they send out policy renewals, leaving it up to the policyholder to read through their policy to ensure they know exactly what they’re signing up for. Unfortunately, this critical detail is often overlooked, leaving many policyholders underinsured and caught off guard when it matters most.

We recommend reviewing your policy annually to ensure your property is adequately protected. Submit your policy for a free review today! Our team will identify gaps in your coverage and help you find a policy to protect you when disaster strikes.  

The (Not So) Transparent Insurance Industry

Here’s where the gloves come off. Despite their endless justifications, insurance carriers aren’t hurting. Many are seeing record profits—and yet premiums continue to rise. The property and casualty insurance industry made a “record $88 billion in profits in 2023. In Q1 2024, profitability continued to surge, reaching $39 billion in one quarter alone,” the Illinois Trial Lawyers Association reported. So, the next time your carrier leaves you to believe they simply don’t have the means to help, remember—you’re padding their bottom line. 

Don’t just Weather the Storm—Fight Back!

Nebraska property owners deserve better. The ongoing storm cycles may be uncontrollable, but unchecked insurance premiums don’t have to be. Start by taking control of your policy and working with professionals who have your back. Because let’s face it: your insurance carrier? Not so much. 

Submit your policy for review today!

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Make an Appeal: Denied Property Insurance Claims

No-Nonsense Guide to Turning Rejection into Victory

Got a big, fat “denied” stamp on your insurance claim? Ouch—we know how much that hurts. A denial isn’t the end of the road—it’s just a detour. If you’re ready to file an appeal for your denial, it’s time to roll up your sleeves, gather your facts, and call the Premier Claims team to tackle the appeal process head-on.

Step 1: Get to the Bottom of Why Your Claim Was Denied

First, understand why you can appeal your denied insurance claim. Your insurance carrier will send you a formal denial letter explaining their reasons. The terms could be straightforward, like missing documentation or a policy exclusion, but sometimes, they’re more complicated.

Review the Denial Letter Thoroughly

Compare the reasons in the letter with the terms of your policy. Does the denial align with your understanding of your coverage? 

Discuss the Denial

Contact your claims adjuster or agent if the explanation doesn’t add up. Sometimes, a simple conversation can clear up misunderstandings. 

If the letter looks like it’s written in a foreign language, Premier Claims is here to help. Our team will break down the fine print and help you understand your policy and the so-called reasons for denial.

Step 2: Gather Your Evidence Like a Pro

Once you understand why your claim was denied, it’s time to build your case. This step is all about showing your insurance carrier why they got it wrong. You’ll need:

Proper Documentation

Collect all the paperwork tied to your claim—damage photos, repair estimates, and correspondence with the insurer. If you have photos of your property before the damage occurred, make sure to include them! 

The key here is thorough documentation. The more compelling your evidence, the harder it is for the insurer to stick to their denial. 

Step 3: File a Formal Appeal

If a friendly conversation with your insurance carrier doesn’t lead to a resolution, it’s time to file a formal appeal. Your insurance policy will outline the specific appeals process, including any deadlines. Don’t miss these—once the window closes, so does your chance to appeal.

Write an Effective Appeal Letter

Address the reasons for the denial directly and back up your argument with the evidence you’ve gathered. Make sure everything is organized and easy to follow. 

Stay Professional

This is all about facts, not feelings. Keep the tone professional, and let your evidence do the talking. 

Do you want your appeal letter to be as effective as possible? Premier Claims can take this task off your hands, writing a clear and compelling appeal intended to increase your chances of success. 

Step 4: Get a Public Adjuster on Your Team

Here’s where things can start to turn in your favor. A licensed public adjuster, like those at Premier Claims, can make a world of difference. They understand the ins and outs of property insurance claims and know how to best get results. 

Why You Need a Public Adjuster

Public adjusters work for you—not the insurance carrier. They’ll review your policy, document and value your losses, and negotiate your settlement on your behalf. 

Timing is Key

The sooner you get a public adjuster involved, the better. They can help strengthen your case and handle the tough conversations with your carrier. To learn more about when to get a Public Adjuster involved in your claim, read our blog: https://premier-claims.com/blog/when-to-hire-public-adjuster/

Don’t wait until your appeal is denied before calling for backup. Getting our team involved early can turn the tide in your favor before things get messy. 

Step 5: Consider Filing a Complaint or Taking Legal Action

If you’re still not getting anywhere, you may need to escalate the situation. Filing a complaint with your state’s insurance commissioner is one option. If things have really gone south, you might consider legal action. 

Filing a Complaint

Insurance regulations govern the industry. If you believe the insurer treated you unfairly, submit a formal complaint to your state’s regulatory body, which can sometimes push the insurer to reconsider.

Legal Action

In some cases, hiring a lawyer who specializes in insurance disputes may be necessary. This can be costly and time-consuming, but sometimes, it’s the only way to get what you’re owed. 

If you’ve reached this stage, Premier Claims can still help. We can connect you with trusted legal experts who know how to handle property insurance disputes and fight for your rights. 

Don’t Go It Alone

Appealing a denied insurance claim can feel like an uphill battle, but you don’t have to go through it alone. Working with experts like Premier Claims can significantly increase your chances of success. We’ve helped countless clients turn denials into approvals, and we’re ready to do the same for you. 

Need help with your appeal? Contact Premier Claims today!

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Why Insurance Claims Are Denied and Underpaid

Navigating insurance claims can feel like deciphering a cryptic puzzle. You file a claim expecting support, only to face the frustration of either a denied or underpaid insurance claim. Ever wondered what causes these outcomes? Join us as we unveil why insurance claims sometimes fall short and how you can proactively protect your rights.

Profit Pressures and Claim Outcomes

Insurance companies prioritize profit, which directly impacts their bottom line. This focus can lead to underpaid claims as they seek to maintain financial health. Your claim could be denied or underpaid for a multitude of reasons. Here are five of the most common:

Policy Exclusions

Policies often contain specific exclusions that limit coverage for certain events or circumstances. Your claim may be denied or only partially paid if it falls within one of these exclusions. If your current policy falls short, exploring alternative options is crucial to better prepare for the future. Our team is ready to assist you in finding the right coverage with the right carrier. To ensure that your property is adequately protected, submit your insurance policy for a complimentary review: https://premier-claims.com/policy-review/

Incomplete Documentation or Incorrect Information

Insufficient evidence or documentation to support your claim can result in underpayment or denial. Keep records, receipts, and photos to substantiate your claim. Incorrect or incomplete information provided when filing a claim can lead to delays or denials. Ensure all details are accurate and supported by documentation.

Misinterpretation of Policy Language

Insurance policies can be complex, and misinterpreting the language or terms can lead to misunderstandings about coverage entitlements. When was the last time you went through your insurance policy? One might think that insurance carriers purposely design policies with sneaky language and jargon that the average policyholder doesn’t understand.

Delay in Reporting

Failing to report a claim promptly after an incident can raise suspicions and lead to increased scrutiny or denial. Report claims as soon as possible to avoid complications! To learn more about when to file a claim, read our blog: When Is the Right Time to File a Property Insurance Claim?

Pre-existing Damage or Conditions

Claims for damage that existed before the policy period or was caused by pre-existing conditions may be denied as they do not meet the coverage criteria. Accurate documentation of the damage to your property and the date of loss is key! We recommend ensuring that your property is routinely inspected to help mitigate this type of denial. Updated documentation of your property’s condition can be a huge asset throughout any claims process.

Understanding Your Coverage Inside Out

Misunderstanding policy coverage often leads to claim denials. Policies are filled with industry jargon and fine print that can be challenging to decipher. Knowing your coverage thoroughly can prevent surprises and ensure you receive entitled benefits.

Leveraging Claims Expertise

Navigating claims processes alone is daunting. Our team of licensed professionals dedicates itself to maximizing your claim and advocating for your rights. Their extensive experience tends to ensure clarity and fairness throughout negotiations.

The Role of Public Adjusters

Similar to going to court without a lawyer, facing an insurance claim without a public adjuster may put you at a disadvantage. Public adjusters, like those at Premier Claims, specialize in claims management, offering critical support in understanding your rights as a policyholder. Premier Claims has a fully equipped team that tackles every aspect of the claims process for you.

Understanding why claims are underpaid or denied empowers you to secure fair treatment from your insurance company and prepare for future claims. Leveraging expertise, knowing your policy, and seeking professional support enable confident navigation of the claims process.

Take Charge of Your Claims Process Today.

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Understanding Water Damage Coverage: A Policyholders Guide

Water damage is one of the most common and potentially devastating issues property owners face. Whether it’s due to a burst pipe, heavy rainfall, or a faulty appliance, water damage can wreak havoc on your property. Understanding your insurance coverage is crucial in such situations. We will delve into the intricate details of water damage coverage, so that you, as a policyholder can be better informed and prepared in the event of water damage.

Types of Water Damage Coverage

Sudden and Accidental Damage

Most standard property insurance policies cover sudden and accidental water damage. This includes situations like a burst pipe, a malfunctioning appliance, or a sudden leak in the roof. However, coverage might vary based on the specific cause, so it’s essential to understand the policy terms.

Flood Damage

It’s important to note the standard insurance policy typically does not cover flood damage. For protection against floods, a separate flood insurance policy from the National Flood Insurance Program (NFIP) is necessary. Furthermore, if you live in a flood-prone area, investing in flood insurance is highly recommended.

Sewer Backup

Sewer backups can cause significant damage to your property. Some insurance policies offer coverage for sewer backups, but it’s often an optional add-on. Check your policy to see if this coverage is included or consider adding it for comprehensive protection.

Understanding Coverage Limits

Even if your policy covers water damage, there are often limitations to the coverage. These limitations may include caps on the total payout, restrictions on certain types of water damage, or higher deductibles for specific causes. It’s crucial to review your policy documents carefully to understand these limitations and assess if additional coverage or policy adjustments are necessary to align with your financial situation & strategy.

Preventing Water Damage

Regular Maintenance

Regularly inspect and maintain your property, checking for signs of leaks, deteriorating pipes, or faulty appliances. Consequently, addressing issues promptly can prevent significant water damage.

Install Proper Drainage Systems

Ensure your property has adequate drainage systems, including gutters, downspouts, and sump pumps. Therefore, proper drainage can redirect water away from your property, reducing the risk of water infiltration.

Educate Tenants

If you rent your property, educate tenants about the importance of reporting leaks promptly. Simultaneously, in your own residence, ensure family members are aware of water-saving practices and how to shut off the main water supply in emergencies.

Being well-informed about your water damage coverage is the first step in protecting your property and assets. Regular policy reviews, understanding coverage limitations, and investing in additional coverage where necessary can provide peace of mind. By taking preventive measures and staying informed, policyholders can minimize the risks associated with water damage and ensure a swift and effective response in case of emergencies. Remember, a well-informed individual can better protect their property. Stay informed, stay vigilant, and safeguard your property against the unexpected challenges of water damage.

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Insurance Coverage for Collapse

You just bought your dream property— investing time, effort, and resources into making it a reality. Yet, amidst the joys of ownership lies the uncertainty of potential structural disasters. Enter collapse coverage, a policy feature often overlooked, but essential in shielding your investment. Learn about the depths of this coverage type, demystifying its significance, and empowering you to navigate your policy with confidence.

Do I Need Collapse Coverage?

Collapse coverage protects policyholders from financial losses resulting from the sudden and unexpected collapse of a building or a part of the property. This collapse could be due to various reasons, including structural defects, hidden decay, or other covered perils. Collapse coverage typically comes in two forms: broad and narrow.

Broad Collapse Coverage

Broad collapse coverage offers protection against a wide array of causes, including hidden decay, insect or vermin damage, and weight of contents. This comprehensive coverage ensures that policyholders protect their property from a broad range of potential risks.

Narrow Collapse Coverage

Narrow collapse coverage requires proof of a specific cause, such as fire, explosion, or perils explicitly listed in the policy. This type of coverage is more specific in its requirements, but still offers essential financial protection in the event of a collapse.  

What Does This Look Like in Your Policy?

One fundamental aspect to consider is how your insurance policy defines collapse. Definitions can vary significantly depending on the policy and carrier. While some policies define collapse as an abrupt falling down or caving in of a structure, others may include substantial impairment of structural integrity. Understanding how collapse is defined in your insurance policy is key when it comes to protecting your property.

Covered Causes

We recommend policyholders review the events or perils covered in their insurance policy to assess their level of protection comprehensively. Covered causes may encompass structural defects, insect or vermin damage, the weight of ice, snow, or sleet, and specific natural disasters, among others. By understanding these covered causes, policyholders can better anticipate and mitigate potential risk to their property.

Exclusions

Similar to other insurance coverages, collapse coverage has a set of exclusions that can limit what it will cover. Common exclusions include gradual deterioration, wear and tear, settling, and maintenance related issues. These exclusions highlight the importance of routinely maintaining your property. Being aware of these exclusions allows you to understand the extent of the coverage provided by the policy and any potential gaps that may exist.

Why Your Property Needs Structural Protection

Collapse coverage provides policyholders with financial protection against unforeseen structural failures that could result in significant repair costs. Property owners may face substantial expenses to repair or rebuild damaged structures without this coverage type.

Review Your Policy

To ensure adequate protection, we recommend policyholders carefully review their insurance policies and understand the terms and conditions of their coverage. They should also consider consulting with a qualified insurance professional to assess their coverage needs and make informed decisions. To have your policy thoroughly reviewed by our team of licensed professionals, submit your policy here: https://premier-claims.com/policy-review/

Collapse coverage is a vital component of property insurance, offering protection against unexpected structural failures. By understanding what their insurance policy entails and ensuring they are adequate coverage, policyholders can protect their properties accordingly. Knowing that you’re financially protected in the event of a collapse, is the peace of mind every property owner deserves.

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Will My Insurance Premiums Go Up?

A hailstorm hits your area, leaving a trail of damage in its wake. Amidst the chaos, you’re left wondering about the aftermath, not just in terms of property damage but also the looming uncertainty of insurance premiums. Will your premiums go up if you seek professional help in navigating the claims process?

Understanding Insurance Premiums

Insurance carriers assess several factors when calculating premiums. This includes the likelihood of future claims and the overall risk associated with insuring a property. However, it’s important to note that insurance carriers cannot legally raise premiums solely due to an Act of God, such as a hailstorm, flood, or hurricane.

Factors Influencing Premium Increases

Insurance carriers may increase premiums based on two primary factors:

Fault of the Policyholder

Premiums may increase if the policyholder is deemed at fault for the property damage. For example, if a policyholder recklessly drives a vehicle into their building, resulting in damage, the insurance carrier may raise premiums to reflect the increased risk associated with insuring the property. 

Catastrophe Area

Premiums may also increase if the property is located in a “Catastrophe Area.” This designation typically applies to regions affected by severe storms, such as hurricanes or tornadoes. Areas where severe storms cause multiple claims to be filed in the area. In such cases, insurance carriers may raise rates for all policyholders in the affected area to help mitigate the financial impact of widespread damage. 

The Role of Public Adjusters

Public adjusters play an important role in the insurance claims process. These professionals advocate for policyholders and assist in navigating the complexities of filing insurance claims. Contrary to common misconceptions, hiring a public adjuster should not inherently cause insurance premiums to increase. 

Public adjusters work tirelessly to fight for policyholders to receive fair and equitable compensation for their losses. They possess in-depth knowledge of insurance policies and regulations. This allows them to negotiate effectively with insurance carriers on behalf of the policyholder. By leveraging their skills, public adjusters strive to earn the best settlement possible for a claim, in turn expediting the claims process. To learn more about the role a public adjuster can play in your claim, read our blog: What is a Public Adjuster?

Connect with Premier Claims

If you’re considering hiring a public adjuster or have questions about your insurance premiums, our team at Premier Claims is here to help. We comprehend the complexities of the insurance industry and pledge to serve as a trusted resource for policyholders. Contact us today for an inspection or to have your policy reviewed by our experienced team. 

Working with a public adjuster should not result in an increase in insurance premiums. Insurance carriers primarily base premium adjustments on factors such as fault and Catastrophe Area designations. Public adjusters play a vital role in advocating for policyholders. Don’t hesitate to seek assistance from our team at Premier Claims, we’re here to support you every step of the way.

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