Beware of agents modifying your policy for hail and wind losses. I was contacted by a customer last week who had damage to their home from a hail storm. This past year, the agent apparently changed their coverage to “save” them some money on their annual premium! The agent modified the coverage for the roof to be actual cash value rather than replacement cost for hail and wind losses. Moreover the agent made the deductible for wind and hail claims be 2 percent of the value of the property rather than the normal 500 deductible. When the claim was tallied, the total deductible was nearly $6,000 and the reduction to roof coverage was nearly $5,000! How much did the premium get reduced as a result of this change? A whopping $62 a year! Criminal!
It appears that a lot of insurance companies are doing this! It is not to save the consumer premiums as much as it is to reduce their exposure on claims! Beware! Just ask anyone who has experienced a loss and you will realize that this is primarily why you have coverage! The annual savings is no benefit! Do not let your agent change this. I spoke with others recently who got renewals and these items were changed and not brought to the customers attention! The carrier just made it part of the renewal!
You will want to avoid premium reductions for wind hail!