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Insurance Companies Charge More, Cover Less
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Friday, March 9, 2012 at 10:09am

Smartmoney magazine highlights a growing practice of insurance companies cutting back on home insurance coverage.  This is particularly the case in areas susceptible to tornados and hurricanes.  What used to be standard coverage now requires a supplemental policy.  This puts homeowners in a difficult position:

"Weakening coverage comes at an already challenging time for homeowners. Insurance premiums are estimated to rise 5% this year to $1,004 on average, according to the Insurance Information Institute -- and in some cases, deductibles are rising too. In December, State Farm began informing policy holders in Texas with homes insured for at least $100,000 that their deductibles would move from a fixed dollar amount (starting at $500) to at least 1%."

Homeowners and business owners should carefully examine their coverage with their agents.  And if a claim arises, an attorney can be of benefit if the insurance company treats the owner unfairly.