Is your homeowners insurance policy riddled with loopholes?

The process of getting reimbursed for a homeowners insuranc is loaded with tricky loopholes and interesting situations. The simplest of everyday situations can become loaded with legal technicalities.

Do you have a CLUE?

If a neighborhood kid's ball smashes your window, you, a newbie to home insurance, could tell your insurance company about this and ask about your deductible.

The insurance company, however, might file this as a claim and accordingly change rates, forwarding the call through a CLUE (Comprehensive Loss Underwriting Exchange report). Since this report is available to anyone who expresses financial interest in your home/property, it can unnecessarily complicate the financial viability of your property.

Dogs Aren’t your Best Friend

Even your most loyal buddy can become a difficult variable in your policy. While a homeowner policy usually insures against dog-bite liability, this does not include dogs not specifically mentioned in your insurance.

To further complicate matters, certain breed of dogs like Pit Bulls, Rottweilers, and Doberman Pinschers, are commonly looked upon as suspect by insurance companies.

Was it a Flood or a Hurricane?

If your home is destroyed during a hurricane, know that even if your home insurance specifically mentions hurricane insurance it might not cover flood insurance - which is what might have actually destroyed the house.
(A hurricane involves both wind and flood, remember?)

This is called "anti-concurrent language," and is something you should interrogate your insurance agent about.
On the topic of the insurance agent, it might seem polite to trustingly agree with your insurance agent once he has impressed you. Beware!
Don't hesitate to ask him difficult questions. That's his job, to allay your doubts. If he can't, or hesitates to answer them, take it as a warning sign.