Have you checked up on your homeowner's insurance policy lately?


Now might be a good time to check on your homeowner's insurance policy.  Many insurance companies are making changes and notifying (or not notifying) customers by sending them one of those three page letters with the type so small you have to use a magnifying glass just to read it.  Certainly, about half way through most of us just stop reading and trash it thinking it's not important.  I'm guilty of the same thing, but that is starting to change!


Many insurance companies are changing their customer's policies and the customer doesn't even know.  One prominent Tennessee insurance company now pro-rates the life of the roof on your home.  This is due to all the claims that have been made for hail and storm damage in recent years.  So, if you have a 20 year shingle on your home and you have hail damage 10 years after you installed the roof, you're only going to receive half the cost of a new roof!  So you thought you were getting a new roof because you had insurance, surprise, you're not!  Unless you're willing to fork out the cash to cover half the cost.  This has happened to many homeowners when selling their home.  A home inspection reveals they have hail damage they never knew about.  They are then told by the inspector they can make an insurance claim on the roof.  That's when they discover their policy has changed and they now have to pay out an additional $5,000 just to sell their home (half the cost of an average roof).  Wow!  Didn't think about that when they negotiated their sales price!  The bad thing is that if the damage isn't enough to warrant replacement, then the buyer's insurance company won't insure the roof.  When that happens, the mortgage company won't loan money on the home because the roof is damaged and can't be insured and the sale of the home falls through!  Talk about a scam!  Your insurance company won't repair it and the buyer's insurance company won't insure it!


What can you do?  My suggestion would be to check your current policy for all terms and conditions.  Especially roof replacement!  If your current insurance company is pro-rating your policy, FIND A NEW INSURER!  There are many companies out there that are still providing 100% replacement.