One of the most frustrating aspects of applying for a home loan is insurance. Mortgage lenders are very particular about the declarations made by insurance companies in San Diego: loss payee, amount of coverage and applicable endorsements, for example.
Borrowers are often surprised to learn their closings are delayed because of some defect in their homeowner’s policy that requires revision. Even more jolting, however, is discovering that the policy is inadequate when the owner needs to file a claim. Although 95 percent of homeowners carry hazard insurance, many Americans are paying into policies that will not provide the expected benefits.
Collecting 70 billion dollars annually in premiums, the residential property insurance industry now takes in twice as much as it did in the year 2000. Yet, those premiums do not always deliver the necessary coverage to protect the policy holders. One reason for this involves home improvements: coverage is not increased when the house is enlarged or otherwise enhanced in value. Likewise, the cost of labor, energy and building materials has increased over seven percent in the last decade, raising the price of actual replacement.
Studies show that 65 percent of homeowners carry insufficient coverage. Worse, 50 percent of properties in high-risk areas are under-insured per the Federal Emergency Management Agency (FEMA), e.g. flood zones and regions prone to tornado activity. The cost of maintaining a home is heavy and an understandable response is to economize wherever possible. Each and every homeowner does well to examine the home insurance policy carefully. Compensation may be far from what is needed should a fire or other damaging incident occur.
Fortunately, whether you’re looking for a new homeowners insurance policy in San Diego or you’re thinking about switching insurance providers, you can rely on the experience and reputation of the professional insurance agents at American Tri-Star Insurance. It’s not our goal to sell you on policies that are high in price, but to provide you with the policy that will best protect you and your family.
For more information about homeowner’s insurance, reach out to American Tri-Star today at 619-325-0326. We offer free, instant quotes and would be more than happy to answer any of your questions.