Flood and Mold Insurance
Posted by: info | June 7, 2007
Both flood and mold insurance are optional in most states. Many agents exclude these coverages when providing homeowners insurance quotes. I was shopping for homeowners insurance quotes last week, to get a feel of how our rates compared to the competition. I flipped through the yellow pages and called six agents for quotes in Texas. The entire process provided me a better understanding as to why many people are under-insured and don’t have the proper coverage for their property.
During the process not one agent asked if I wanted flood or mold coverage. Flood coverage protects damages from water coming from the outside in. Most policies already cover water damages from plumbing, pipes, baths and any other sources in which comes from the inside of your home. This protection is great to have, but it will not cover you from a devastating flood. Floods kill more people and possibly cause more damage than any other natural disaster in America. So with this in mind, why don’t insurance agents care to at least offer you this protection?
This is very hard to answer. Some possible reasons for agents to leave off flood protection could be to, offer a lower priced quote, not trained properly or consider it not important. Agents who aren’t aware or consider flood damage not to be important, should lose their license or be forced to get better educated before writing anymore policies. I know these agents aren’t forgetting to ask if you want it, because everyone declining flood coverage must sign an agreement stating they was offered coverage but refused protection.
Mold has become a very hazardous and costly to insurance agents as well. In the late 90’s and early 00’s mold coverage became a big problem for a lot of insurance companies. Texas Insurance Companies may have been hit the hardest during this time. A lot of these companies couldn’t afford to pay these claims. They did not plan or was unaware of how big a problem mold coverage was. Even major companies dropped coverages and refused to write any new policies in the state. They decided is was easier and less expensive to quit doing business vs. solving the mold problems and paying out claims.
Mold coverage protects against dangerous fungus and bacteria growing in your home. Black mold is probably the most typical or common type of mold. It is a fungus or bacteria that grows most commonly where water is present and left standing with a blackish color. A leaky pipe, tub, toilet or roof in a cool dark and damp place is a hot spot for mold. With these dangers in mind, it puzzles me greatly that many agents don’t offer this coverage.
Mold coverage may not be offered for many of the same reasons that some agents don’t offer flood protection. Again anyone who doesn’t want to have mold coverage must sign an agreement declining coverage. unfortunately for most insurance buyers, some of these agents don’t explain or prefer you not to read the agreement in which you are signing.
The agents failing to offer or teach people the importance of the different coverages, are making the Internet a much more attractive place to get insurance quotes. The Internet can educate you on the entire homeowners insurance coverage options. Internet sites can also allow the public to get a policy designed for them. Visit our homeowners insurance center to learn more about coverage options, available tools, free worksheets, tips to save money or get a quote.
Posted in: Insurance, Mortgages, General |
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