Many people don't have reliable insurance for their home. That's the finding of a Consumer Reports National Research Center survey on insuring your home. The problems included delayed payments, payouts that were smaller-than expected, and some claims that were denied entirely.
Those who reported the most problems with claims were with—Farmer's Insurance, Allstate, and Traveler's—all major insurance carriers.
And Consumer Reports finds many insurance companies are cutting back coverage. Some are imposing high deductibles for windstorm damage. You might not be covered any longer for mold or dog bites.
Most important is checking what coverage you'll have if your house is destroyed. Consumer Reports says Insurers are cutting back here, too. "Guaranteed replacement cost coverage," which pays the total bill to rebuild regardless of the price, is very hard to get, and where it's available it's very expensive.
Consumer Reports recommends comparison shopping for insurance every five years. Some good sites—netquote.com and insweb.com.
And to be sure you're protected in the future, check that the policy includes adjustments for inflation.
Consumer Reports says be aware that flood damage is never covered by private homeowners insurance. But you can get flood coverage through the federal government. For details, go to www.floodsmart.gov.
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