When purchasing homeowners insurance, there is more to the story than just purchasing enough insurance to cover the value of the house and its contents.
For homeowners insurance to adequately protect the owner’s investment in their home and personal property, insurance policies require that the insured person has an insurable interest.
What does that mean?
It is a detail that many customers of homeowners insurance agencies do not understand, resulting in great personal loss when their home and personal property are damaged.
What Is An Insurable Interest for Homeowners Insurance?
Insurable interest is a requirement that homeowners insurance carriers have for their policies.
It is a concept stating that homeowners insurance claims are only payable to persons with an insurable interest in the property.
While that likely makes sense to home-owning customers on the surface, many end up surprised after the fact when making claims to their homeowner's insurance agency for damage to homes and other personal property.
Why Does Having An Insurable Interest Matter?
For every person and their property to be fully protected by a homeowners insurance policy, all owners of the home and personal items within it must have an insurable interest in the home.
The purpose of this requirement that homeowners insurance carriers include in their policies is to prevent insurance fraud.
Names that do not appear on the deed and/or on the insurance policy may not be recognized as having an insurable interest in the property by their homeowner's insurance agency, leaving those individuals footing the bill for declined property damage and liability claims.
Watch This Video For More Info About Insurable Interest!
In this short, but informative video, partner Brad Hurt from Service Insurance Group introduces the concept of insurable interests when purchasing homeowners insurance and how it can affect insurance claims for physical damages as well as liability protection.
Discuss Insurable Interest with An Insurance Expert
Before finalizing any homeowners insurance purchase, it is critical for homeowners to understand the concept of insurable interest and who actually has that according to their chosen policy and insurance carrier.
Homeowners can avoid costly claims rejection surprises by discussing insurable interest with an experienced homeowners insurance agent who can help them find the right policy or make the changes necessary to ensure their property is effectively protected!
About
Homeowners' insurance claims provided by an insurance agency such as Service Insurance Group are only paid to those who have an insurable interest in the property.
If looking for any type of personal or business insurance, the Agents at Service Insurance Group shop for the right person or business insurance policy to fit individual needs – call them at (979) 300-7345 to get a quote!
