Homeowners Insurance during Stormy Weather

As Tropical Storm Ida brought heavy rain and powerful winds to the Gulf Coast on Tuesday, homeowners were reminded to check their home insurance to ensure they have the proper coverage. In fact, MoneyWatch.com reports that many homeowners take out a homeowner’s policy as a standard step in the mortgage application process, only to toss it into a desk drawer never to see it again.

“Too many people are not adequately insured, and they don’t know it until it’s too late,” says Amy Bach, executive director of United Policyholders, a nonprofit consumer education organization. The article goes on to explain that an estimated 66 percent of American homes are underinsured by an average of 18 percent (that’s $90,000 for a $500,000 house), according to a 2007 survey by Marshall & Swift/Boeckh.

Whether you purchased cheap home insurance or don’t remember the details of your coverage, now is the time to bring out your current policy and visit your insurance agent to negotiate some changes. Since insurance is a competitive industry, it is a good idea to shop around to find the lowest home insurance quotes available.