Are you properly insured?

The three levels of insurance coverage are Basic, Broad and Special. If you are carrying basic you may find you have gaps in coverage. Whats more; your agent may not have told you your coverage was insufficient to cover many types of loss.

This month we added a new client, by the time we got the keys and access to the property it had severe damage from a flood. The flood appeared to be caused by theft of some plumbing; an all too common problem in Kansas City.

As of now it appears the insurance company may try to decline her claim because she may not have had the proper coverage. With the changes in the industry after the disasters of 911, Katrina, Texas mold and California wildfires, many insurers have decided to limit their exposure in some areas. While your agent is supposed to representing your interests it may be up to you to ask some questions.

Some coverage's do not cover theft; the problem is not always the theft but the damage caused by the theft. The same would apply if you are insured for fire but not insured for vandalism; in theory if the fire was caused by vandalism you may not be insured.

Furthermore; many insurance policies are no longer in effect after a period of vacancy, often thirty days or more. If you aren't sure of your level of coverage you should contact your agent and discuss your specifics. Might I suggest you use email so you have a record of your communication should the need ever arise.

We have had our own surprises with insurance not covering what we thought we were paying for. You may be surprised to find out what they are not covering.

Ben Edsall

http://www.turnkeyproperties.org