3 Sneaky Clauses to Look for in Your Insurance Policies

When you purchase an insurance policy for your home or business, you expect that your property will be covered in the case of an accident or natural disaster. Unfortunately, this isn’t always true. Sometimes, insurance policies have deeply-buried clauses that release the company’s obligation to cover you. Here are three sneaky clauses to look for in your property insurance policies.

1. Insurance Deductibles

This shouldn’t be sneaky. In fact, it should be very straightforward. However, some insurance companies bury clauses in their policies that can change the amount of your deductible.

For example, it’s not uncommon for individuals who live in high-risk areas like Tornado Alley or hurricane-prone locations to have insurance policies with an altered deductible. These policies might have a clause that insists on a higher deductible if the home or property is damaged by one of these storms. Often, the new deductible amount is about 5% of the value of the home. This can be a substantial amount, especially if your bank account isn’t prepared for a natural disaster.

2. The “Anti-Concurrent Causation” Clause

This clause states that if two events happen at roughly the same time and one is covered but the other is not, the entire claim will be denied. So, let’s say that there is a bad storm and your roof gets ripped off your house. Such damage would probably be covered by your insurance.

However, the storm continues and rain pours into your house and floods it. Unfortunately, if you don’t have flood insurance – even though the flooding happened because of the absence of your roof – your whole claim will not be covered. After Hurricane Katrina, more people became aware of the existence of this clause. Because of its denial of coverage, it earned quite a nasty reputation.

3. Coverage Caps

Some policies come with caps on certain damages. A cap means that the insurance company will only pay up to a certain amount of money and no more, regardless of the value of damage.

For example, if your house has water damage, that is probably covered by your insurance policy. However, you might be surprised to discover that many insurance policies have a cap for water damage. This could mean that if your water damage is extensive, you could pay for a portion of your repairs out of pocket.

We Can Help

If you are not sure what exactly your insurance policy is or is not covering, Barnard Law Offices can help. Bring your policy to us and we can help you understand exactly how much coverage your property has. It’s important to understand your policy before you need to file an insurance claim so you can be certain what your insurer should cover.

If you have filed a claim and the company is denying your coverage, Barnard Law Offices can also help. Give us a call today at (305) 665-0000 or contact us online to schedule a time when we can review your policy together.

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Barnard Law Offices

The Barnard Law Offices, L.P. has been protecting the rights of Floridians for four generations. Together our attorneys bring years of insurance claim advocacy and trial experience to the table. We don’t believe in half-hearted measures when it comes to proving your claim: after inspecting the damage to your property, our office will engage or connect you with high-quality third-party professionals to assist you with your claim and assess your property damage. Our talented team is dedicated to serving each client’s needs with a passion and commitment that makes us stand out among our peers.
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