Use an independent roofing consultant to assess hail damage, not just the adjuster’s opinion.
The Second Opinion for Your Home’s Health
Imagine a doctor hired by your health insurer tells you that your serious condition only requires a band-aid. You would immediately seek a second opinion from an independent specialist. An insurance adjuster is that company doctor for your home. An independent roofing consultant is the specialist you hire to get the truth. They will conduct a thorough, unbiased examination of your roof, finding the legitimate hail damage the adjuster conveniently “missed.” Their expert report is the second opinion that proves you don’t need a band-aid; you need a new roof.
Stop accepting a denial for “wear and tear.” Do provide maintenance records to prove the damage was sudden and accidental, instead.
The Difference Between a Sudden Snap and a Slow Rot
Imagine a strong, healthy tree in your yard suddenly snaps in half during a storm. Now imagine a different tree, rotten and neglected, slowly falling over. The first is a covered accident; the second is predictable “wear and tear.” An insurer will claim your roof leak is like the rotten tree. Your maintenance records—receipts for regular inspections or minor repairs—are the proof that your roof was the strong, healthy tree. They demonstrate that the damage wasn’t a slow rot but a sudden, accidental snap.
Stop letting them pay for one mismatched shingle. Do invoke your policy’s “matching” statute or clause for a full roof replacement, instead.
The Mismatched Patch on Your Expensive Suit
Imagine a vandal puts a huge, ugly patch on the sleeve of your brand-new designer suit. A tailor offering to just replace that one patch with a mismatched fabric would be insulting. Your roof and siding are your home’s suit. When a storm damages them, the insurer wants to just put on a mismatched patch. Many states and policies have “matching” rules that say if a seamless repair isn’t possible, they owe you for a whole new, uniform appearance. Don’t accept a patchwork quilt; demand the brand-new suit.
The #1 secret to winning a water damage claim is to prove the cause was a “sudden and accidental discharge,” not a long-term leak.
A Burst Pipe vs. a Slow Drip
Think of water damage like this: a dishwasher supply line suddenly bursting and flooding your kitchen is a covered “accident.” A tiny, slow drip from a faucet that you ignored for months, causing wood to rot, is a “maintenance issue” and is not covered. The #1 thing the insurer will look for is evidence of a long-term leak, like old water stains or mold. To win your claim, you must prove the damage was a sudden, one-time event—the burst pipe—not the slow, ignored drip.
I’m just going to say it: Your insurance company is hoping you don’t know the difference between “flood insurance” and “water backup” coverage.
The Water That Comes from the Sky vs. the Water from the Sewer
Imagine your house is a boat. “Flood insurance” covers you when the river rises and water comes over the sides of your boat from the outside. But standard home insurance does not cover this. What it often covers (if you have the endorsement) is “water backup,” which is when a clogged drain or sewer line makes water come up from inside your boat. The insurer hopes you’ll confuse the two, so they can deny your sewer backup claim by calling it a “flood.”
The reason your mold claim was denied is because of the low sub-limit for mold in your policy.
The Tiny Safe Within the Giant Vault
Your homeowner’s policy is like a giant bank vault that can hold up to $300,000. But for certain items, like mold, they have placed a tiny, locked safe inside that vault. While the main vault is huge, the policy says the little safe for mold can only ever hold a small, fixed amount, like $5,000. So even if you have $50,000 in mold damage, they will point to that “sub-limit” and say they can only give you what fits inside the tiny safe.
If you’re still letting the insurer’s “preferred contractor” write the scope of work, you’re losing thousands in repair costs.
Don’t Let the Fox Design the Henhouse
Letting the insurance company’s chosen contractor write the repair estimate is like letting a fox design your henhouse. He will surely design a beautiful henhouse, but it will have a few convenient, fox-sized holes and use the cheapest possible materials. Your own, independent contractor is your trusted architect. They will create a detailed, complete blueprint for the repair that accounts for every nail and board, ensuring the henhouse is rebuilt to its original, fox-proof condition, not to the fox’s budget.
The biggest lie you’ve been told is that you can’t reopen a claim after you’ve received a check.
The First Check Is a Down Payment, Not a Final Payoff
That first check you get from the insurance company is not the end of the story. It is a down payment based on the visible damage. Imagine you cash a check for a dented car fender, but later discover the axle was bent. You can, and must, file a “supplemental claim” for that hidden damage. The same is true for your house. If your contractor opens a wall and finds hidden water damage, your claim can be reopened to pay for those additional, necessary repairs.
I wish I knew about the “co-insurance penalty” before I underinsured my home.
The Penalty for Bringing a Bucket to a House Fire
Imagine your $400,000 house burns down. You feel safe because you have a $300,000 policy. But the “co-insurance clause” is a hidden rule that says you must insure at least 80% of your home’s value (in this case, $320,000). Because you were underinsured, they won’t just subtract the difference. They will impose a penalty, reducing your payout even further. It’s like being punished for not bringing enough water to put out your own fire, leaving you with even less to rebuild.
99% of homeowners make this one mistake: not having a “rider” or “floater” for high-value items like jewelry or art.
The Special Ticket for Your VIP Possessions
Your standard home policy is like a general admission ticket to a concert; it gets all your normal stuff inside. But your valuable jewelry, art, or collectibles are VIPs. They are not allowed in the main doors and have very low coverage limits. A “rider” or “floater” is a special, all-access VIP pass that you buy just for those items. It insures them for their full appraised value, with no deductible, giving them the special protection they deserve.
Use a public adjuster for any claim over $10,000, not just for total losses.
Your Personal Lawyer for Your Insurance Claim
You wouldn’t go to court over a $10,000 business dispute without a lawyer. A public adjuster is the lawyer for your insurance claim. The insurance company has their own team of experts (adjusters, engineers) all working to pay you as little as possible. A public adjuster is your expert, on your side, who will read the policy, document the damage, and negotiate with the insurer to maximize your payout. For any significant claim, you need your own professional in the ring.
Stop accepting a denial for “earth movement.” Do hire an engineer to prove the cause was a covered peril like a broken pipe, instead.
The Shaking Ground vs. the Bursting Pipe
“Earth movement” — like a shifting foundation — is a standard exclusion in your policy. The insurer will use it as a reason to deny your claim for a cracked wall. But what caused the earth to move? Often, the true culprit is a covered peril, like an underground pipe that burst and washed away the soil supporting your foundation. An engineer’s report is the expert testimony that proves the “proximate cause” wasn’t the excluded earth movement, but the covered, accidental pipe burst.
Stop letting them depreciate your labor costs. Do argue that labor cannot be depreciated and must be paid in full, instead.
A Carpenter’s Skill Does Not Get Old
Depreciation applies to things that wear out, like a 15-year-old roof. An insurer will try to apply this same logic to the cost of labor to install a new roof. This is a trick. The skill and time of a carpenter, a painter, or a roofer do not get old or wear out. It is a service, not a physical product. You must argue that labor is a non-depreciable cost and demand that the full amount for the work be paid under the “Replacement Cost” portion of your policy.
The #1 secret for maximizing your “Additional Living Expenses” claim is to keep every single receipt for meals, lodging, and mileage.
Rebuilding Your Normal Life, One Receipt at a Time
“Additional Living Expenses” (ALE) is the coverage that pays for the difference between your normal life and your temporary life after a loss. If you normally spend $200 a week on groceries but now have to spend $500 eating out, ALE pays the $300 difference. The secret is that you must prove this difference with meticulous records. Every gas receipt for extra driving, every hotel bill, and every restaurant check is a brick you use to rebuild your financial life. No receipt, no reimbursement.
I’m just going to say it: The adjuster’s initial estimate is intentionally low and misses dozens of line items.
The First Draft That’s Missing Half the Chapters
The adjuster’s first estimate is not a final, thorough report. It is a first draft written with the goal of saving their company money. It is like a book that is missing half its chapters. They will conveniently forget to include the cost of painting the trim, hauling away debris, or the necessary permits. Their low number is just a starting point in a negotiation. Your contractor’s detailed, line-item estimate is the complete, unabridged novel that tells the true story of what it costs to fix your home.
The reason your theft claim is being scrutinized is because there was no sign of forced entry.
The Locked Room Mystery That Makes You the Suspect
When you report a theft, you are the victim. But if the police report says there was no broken window and no pried-open door, you immediately become the primary suspect in the eyes of the insurer. To them, a “no forced entry” theft is a giant red flag for potential fraud. They will investigate you thoroughly, asking for proof of ownership for every item and looking for any financial motive you might have for staging the event.
If you’re still not reading your policy’s “Ordinance or Law” provision, you’re losing out on money for required code upgrades.
The Hidden Fund to Get Your House Up to Code
Imagine your 30-year-old house suffers a fire. The insurance pays to rebuild it exactly as it was. But the city inspector arrives and says, “Sorry, modern building codes require you to add new sprinklers and updated wiring.” The “Ordinance or Law” coverage is a secret pot of money in your policy (usually 10% of your home’s value) specifically designed to pay for these mandatory, expensive upgrades that were not part of your original house. It’s free money you are leaving on the table.
The biggest lie you’ve been told is that damage from a fallen tree is covered by your neighbor’s insurance.
If a Tree Falls on Your House, It’s Your Claim
It feels logical: your neighbor’s tree falls and crushes your garage, so their insurance should pay. This is almost always false. The law views it as an “Act of God.” The location of the damage determines who pays. Since the tree landed on your property, it is your homeowner’s insurance that must cover the removal of the tree from your house and the repairs to your structure. The only exception is if you can prove your neighbor was negligent and knew the tree was rotten.
I wish I knew to get my own structural engineer’s report after a fire, not just relying on the fire department’s assessment.
The Doctor’s Report on Your Home’s Broken Bones
After a fire, the fire department’s report tells you how the fire started. It does not tell you if your house’s bones—its structural foundation and load-bearing walls—have been compromised by the intense heat. The insurance company’s engineer may downplay this. Hiring your own structural engineer is like getting an MRI for your house’s internal injuries. Their report is the expert medical opinion that proves which parts are just bruised and which are truly broken and need to be completely replaced.
99% of homeowners make this one mistake: discarding damaged personal property before the adjuster has inspected it.
Don’t Throw Away the Evidence from the Scene of the Crime
After a fire or flood, your instinct is to clean up and throw away the ruined, smelly mess. This is a catastrophic mistake. Your damaged belongings are the physical evidence of your claim. The burnt couch, the water-logged television, the smoke-damaged clothes—these are the exhibits you must present to the adjuster. Throwing them away is like a detective arriving at a crime scene to find it has been completely scrubbed clean. You have just destroyed the proof of your own loss.
Use a thermal imaging camera to find hidden water damage, not just relying on what’s visible.
The X-Ray Goggles That See Through Walls
Water is a sneaky enemy. A small, visible stain on your ceiling could be the tip of the iceberg, with a huge, hidden pool of water silently spreading inside your walls and insulation. A thermal imaging camera is like a pair of x-ray goggles. It allows a water mitigation expert to see through the walls and reveal the full, terrifying extent of the hidden water by detecting temperature differences. This provides the undeniable proof you need to justify tearing out and replacing all the wet materials.
Stop accepting a denial due to a “vacancy” clause. Do check your policy’s specific definition of “vacant,” instead.
The Difference Between an Empty House and a Vacant One
An insurer might deny your claim for a pipe burst by saying your house was “vacant.” But you must check the policy’s exact definition. A house that is simply empty between tenants but still has furniture in it is usually considered “unoccupied,” which is covered. A “vacant” house, however, is typically defined as a building that is completely empty of all property. Don’t let them use the common meaning of the word; force them to abide by the specific, contractual definition in their own policy.
Stop letting the adjuster dictate the pace of your claim. Do send a written demand for a decision if they are violating prompt payment laws, instead.
The Shot Clock That Forces Them to Make a Move
Most states have “prompt payment” laws that are like a shot clock in basketball. They legally require an insurance company to make a decision on your claim within a certain number of days after you’ve provided the necessary documents. If your adjuster is endlessly delaying, they are illegally running out the clock. Sending a formal, written demand that cites your state’s specific law is like the referee blowing the whistle for a shot clock violation. It forces them to make a move.
The #1 hack for getting your detached structures covered is to know the “Other Structures” coverage limit in your policy.
The Mini-Policy for Your Shed and Garage
Your homeowner’s policy is actually a bundle of smaller policies. The main one covers the house. But there is a separate, mini-policy hidden inside called “Other Structures.” This is the coverage for your detached garage, your shed, your fence, or your guesthouse. It’s typically a set percentage, usually 10%, of your main dwelling coverage. If your house is insured for $300,000, you have a secret, automatic $30,000 policy to rebuild your shed, and you need to make sure you claim it.
I’m just going to say it: Your insurance company uses software like Xactimate that can be manipulated to produce lower estimates.
The Computer Program That Can Be Rigged to Lowball You
The adjuster will show you an official-looking estimate from a program called Xactimate, making it seem like an undeniable fact. But Xactimate is a tool, not a truth machine. The adjuster can choose to use cheaper, lower-quality materials, remove necessary labor steps, and use outdated local price lists. It’s like a calculator: the answer it gives is only as good as the numbers the user types in. Their first estimate is their lowball version; your contractor’s is the one based on reality.
The reason your pipe burst claim was denied is because they claim it was due to “freezing,” which may require you to prove you maintained heat.
The Frozen Pipe and Your Duty to Keep It Warm
A pipe bursting is usually a covered event. But your policy contains a hidden duty for you: if a pipe bursts because of freezing, it is only covered if you took reasonable care to maintain heat in the building. The insurance company will deny the claim by asserting you were negligent. To fight this, you need to provide proof, like utility bills or a statement from a housesitter, that shows the heat was on and set to a reasonable temperature, proving you did your duty.
If you’re still letting a contractor handle your entire claim negotiation, you may be engaging in the unauthorized practice of public adjusting.
Your Contractor Is a Builder, Not a Lawyer
Your contractor is an expert at fixing houses. They are not a licensed expert in interpreting insurance policies. In most states, the negotiation of a claim with an insurer is a licensed activity called “public adjusting.” If your contractor is arguing with the adjuster about what is and isn’t covered by your policy, they may be breaking the law. Let your contractor write the estimate for the repairs, but you or a licensed public adjuster should be the one to negotiate the contractual details.
The biggest lie you’ve been told is that your policy covers everything unless it’s specifically excluded.
You Bought a List of “Covered Items,” Not an “Everything” Policy
This is a critical, and often misunderstood, difference. An “all-risk” policy covers everything except for the things listed in the exclusions. But most standard homeowner’s policies are “named peril” policies. This is the opposite. It is like a shopping list. It only covers the specific list of perils (fire, wind, hail, theft, etc.) written in the policy. If your damage was caused by something that is not on that specific list, there is no coverage.
I wish I knew that I could get a partial payment for the “Actual Cash Value” before the repairs are even started.
The Down Payment to Get the Work Started
After a loss, the insurance company owes you for the full replacement cost, but they don’t pay it all at once. The first check they will release is for the “Actual Cash Value” (ACV). This is the value of your damaged property minus depreciation. Think of it as the down payment. You are entitled to this money immediately, even before you’ve chosen a contractor. It gives you the cash you need to start the rebuilding process while the rest of the money is held back until the work is complete.
99% of people make this one mistake: not understanding the difference between “Replacement Cost Value” and how they actually get paid.
The Two-Check System That Confuses Everyone
“Replacement Cost Value” (RCV) is the full amount to fix your home. But the insurer pays you in two checks. The first check is the “Actual Cash Value” (ACV), which is the replacement cost minus depreciation. The second check, for the depreciation amount they held back, is only released after you have completed the repairs and sent them the final invoice. You have to spend the money first to prove you are entitled to get the full amount back.
Use a detailed inventory of your personal property with photos and receipts, not just a generic list.
The Difference Between “a TV” and “a 65-inch Sony 4K Smart TV”
If your house burns down, the insurer will ask you to list everything you lost. A list that just says “couch, lamp, TV” is a recipe for a tiny settlement. A proper inventory is a detailed, spreadsheet-like document. It lists the specific brand, model, age, and original cost of every single item. “A TV” might be worth $50. A “65-inch Sony 4K Smart TV, model X900, purchased in 2022 for $1,500” is a specific, provable asset that they must pay for.
Stop accepting the adjuster’s lowball offer for your personal belongings. Do find receipts or current online prices for replacements, instead.
Don’t Let Them Price Your Couch at a Garage Sale
When it comes to your personal property, the adjuster will often offer you a lowball amount based on what they think your used items were worth—like a garage sale price. This is wrong. For a Replacement Cost policy, you are owed what it would cost to buy a new, similar item today. You must do the work. Go online, find the current price for a similar couch or television, and send them the link. You must prove the modern replacement cost to them.
Stop letting them deny a claim for wind-driven rain. Do look for evidence of direct wind damage that created an opening in the structure, instead.
The Wind Must Open the Door Before the Rain Can Come In
A standard policy does not cover rain leaking into your house. However, it does cover rain that gets in after the wind has first damaged the building. Think of it this way: the wind must be the burglar that breaks a window or kicks open the door. Only then is the rain that comes in through that new opening considered a covered part of the crime. You must find the evidence—a missing shingle, a damaged piece of siding—that proves the wind broke in first.
The #1 secret for a successful liability claim (like a dog bite) is your “Medical Payments to Others” coverage, which is no-fault.
The “Goodwill” Money That Prevents a Lawsuit
Hidden inside your policy is a small, no-fault medical fund called “Medical Payments to Others.” If a guest is injured on your property (say, they trip on a step), this coverage can pay for their immediate medical bills up to a certain limit (usually
1,0ax,000−1,0ax,000-1,0ax,000−
5,000). It requires no proof of your negligence. Using this “goodwill” coverage to pay for their emergency room visit immediately can often prevent them from getting angry and hiring a lawyer to file a much larger, more expensive liability lawsuit against you.
I’m just going to say it: The contractor the insurance company recommends often has a financial incentive to keep costs low for the insurer.
The Contractor Who Serves Two Masters
The “preferred contractor” the insurer sends you is like a builder who gets 90% of his work from one wealthy client. Who is he going to try to keep happy—you, the one-time customer, or the insurance company that butters his bread all year long? He has a powerful financial incentive to use cheaper materials and cut corners to keep the costs down for his most important client, the insurer. Your own contractor has only one master: you.
The reason your siding claim is being denied for a full replacement is because the adjuster claims the old siding is still available.
The “It’s Still Out There” Lie
When hail damages a few pieces of your siding, the adjuster will often deny a full replacement by claiming your specific, 15-year-old siding is still available. They might even show you a single, dusty piece they found online. This is often a bluff. You must challenge them. Ask them to provide enough of that material to actually complete the repair. When they inevitably cannot, you have proven that a seamless match is impossible, which triggers the clause for a full replacement.
If you’re still signing a “Direction to Pay,” you’re losing control of the insurance money.
Don’t Give Your Contractor the Keys to Your Bank Account
A “Direction to Pay” is a form that allows the insurance company to pay your contractor directly. It sounds convenient, but it is a terrible mistake. It’s like giving your contractor the keys to your bank account. You lose all your leverage. If you are unhappy with the quality of the work, you can’t withhold the final payment because you’ve already authorized the insurer to pay them. Never sign it. The check should be made out to you, so you are the one in control.
The biggest lie you’ve been told is that you have to get three estimates for repairs.
The Myth Designed to Make You Do Their Work
The insurance company might tell you to go out and get two or three estimates. This is a myth designed to make you do their job for them and to anchor the negotiation at a low price. You are under no contractual obligation to do this. Your only duty is to allow them to inspect the damage. Your best strategy is to hire one trusted, high-quality contractor, get their detailed estimate, and present that as your official scope of work.
I wish I knew to document all the landscaping, trees, and shrubs I lost in the fire.
The Green That Adds to Your Green
Your home insurance doesn’t just cover the house; it also has a special, limited coverage for your landscaping. After a fire or other disaster, you might be so focused on the house that you forget about the expensive Japanese maple or the mature oak tree that was destroyed. This coverage is usually a small percentage of your dwelling coverage, but it can add up to thousands of dollars. You must specifically document and claim this loss, or you are leaving free money on the table.
This one small action of creating a video inventory of your home today will change any future property claim you have.
The Five-Minute Video That’s Worth a Million Words
Imagine your house is gone. Now, try to remember and list every single thing that was in your kitchen cabinets. It’s impossible. A video inventory is the ultimate proof. Walk slowly through every room of your house with your smartphone, narrating what you see. Open closets, drawers, and cabinets. This five-minute video, safely stored in the cloud, becomes an undeniable, high-definition record of your life’s possessions. It is the single most powerful tool you can have in a major claim.
Use the appraisal clause to dispute the “amount of loss,” not just accepting the adjuster’s numbers.
The Official Tie-Breaker That’s Written in Your Policy
The “appraisal clause” is the official dispute resolution system built right into your policy. If you agree that your roof was damaged by hail, but you and the insurer are thousands of dollars apart on the cost to fix it, you can invoke appraisal. You each hire an appraiser, and they hire a neutral umpire. The decision of any two of the three is final and binding. It is a powerful tool to break a deadlock on price without having to file a full lawsuit.
Stop letting them deny your claim for a collapsed structure. Do check your policy’s specific definition of “collapse,” instead.
The Difference Between a Crack and a Crumble
Your policy covers damage from a “collapse.” But what does that word mean? The insurer will argue it means the building must be a pile of rubble on the ground. But the policy often has a much broader definition, sometimes including things like a sagging roof or a bowing wall that is in imminent danger of falling. You must find the specific definition of “collapse” in your policy, as it is often the key to getting a denial for a major structural problem overturned.
Stop thinking your claim is over when the repairs are done. Do be prepared to file a supplemental claim for hidden damage, instead.
The Repair Is Just the End of Chapter One
Getting the check and completing the repairs feels like the end of the claim. It’s not. It’s just the end of the first phase. Inevitably, your contractor will find hidden damage once they open up a wall, or the paint on the new siding won’t quite match after a few weeks. These are “supplemental” claims. You have the right to keep the original claim open and submit these additional, unforeseen costs as they arise. The claim is only over when your house is truly back to its original condition.
The #1 hack for getting your claim paid faster is to provide the adjuster with a complete, well-organized documentation package.
Make It Easy for Them to Say “Yes”
An adjuster’s desk is a chaotic mess of disorganized, incomplete files. The file that gets paid first is the one that is easy. Your goal is to create that easy file. Provide them with a single, well-organized package: a clear summary of the damage, your contractor’s detailed estimate, photos, receipts, and a specific demand. By doing all the work for them, you are handing them a file that is too easy to approve and pay to be put on the bottom of the pile.
I’m just going to say it: An adjuster who is “nice” and “friendly” can be the most dangerous because they lull you into a false sense of security.
The Wolf in a Friendly Sheep’s Clothing
A rude, aggressive adjuster puts you on guard. But a friendly, empathetic adjuster is far more dangerous. They use kindness as a weapon. They will call to check on your family, build a rapport, and make you feel like they are on your side. This lulls you into a false sense of security, making you more likely to trust their lowball estimate, less likely to hire your own expert, and more likely to give away information that hurts your claim. Their job is not to be your friend; it’s to save their company money.
The reason your ice dam claim was denied is because your policy excludes damage from freezing and thawing.
The Water Must Come from Inside, Not Outside
An ice dam is a ridge of ice on your roof that causes melting snow to back up and leak into your house. It feels like a roof leak, but insurers often deny it using a tricky exclusion. They will claim the damage is from “freezing, thawing, and the pressure of water,” which is excluded. However, if that water backs up and damages the inside of your home (like your insulation and drywall), that ensuing damage is often covered. You have to understand this subtle but critical distinction.
If you’re still not taking moisture readings of your walls after a water leak, you’re losing the proof for a future mold claim.
The Scientific Proof of a Hidden Problem
After a water leak, a contractor might tell you the walls are “dry.” But “dry to the touch” is not a scientific measurement. Mold can grow on anything that has a moisture content above 16%. You must insist that your water mitigation company use a professional moisture meter and provide you with a documented report of the readings inside your walls. This scientific proof is the undeniable evidence you will need later when mold inevitably starts to grow on the damp materials they failed to remove.
The biggest lie you’ve been told is that your standard homeowner’s policy covers earthquakes.
The Ground Shaking Is a Completely Separate Disaster
Your homeowner’s policy is a list of covered disasters, or “perils.” Fire, wind, and theft are on the list. Earthquakes and other forms of “earth movement” are specifically excluded. It is a completely separate type of disaster that requires its own, separate insurance policy. Just like flood insurance, if you live in an area with seismic activity, you must purchase a specific earthquake policy. Assuming your standard policy covers you for a quake is a catastrophic mistake.
I wish I knew that my policy had a separate, much higher deductible for hurricanes or named storms.
The Secret Deductible That Only Appears in a Hurricane
You might think your policy has a simple $1,000 deductible. But buried in the fine print is a secret, monster deductible that only awakens during a major storm. This “hurricane” or “named storm” deductible is not a flat dollar amount. It is a percentage of your total home value, usually 2% to 5%. If your home is insured for $300,000, a 5% hurricane deductible means you have to pay the first $15,000 of the damage, not just your normal $1,000.
99% of homeowners make this one mistake: not understanding that their policy doesn’t cover the source of a water leak, just the ensuing damage.
They Pay for the Mess, Not the Machine That Made It
This is one of the most confusing rules in insurance. If your 15-year-old hot water heater rusts out and floods your basement, your policy will pay for the catastrophic damage caused by the water—the ruined carpets, drywall, and furniture. However, it will not pay the $1,500 to replace the old, worn-out water heater itself. The policy covers the sudden, ensuing damage, but not the failing piece of equipment that was the source of the problem.