Natural disasters can reveal a lack of literacy about homeowners insurance policies on the part of property owners. In New Jersey, fallout from Superstorm Sandy exposed some of that misunderstanding and inspired civic leaders to address the issue. This month, Department of Banking and Insurance Commissioner Ken Kobylowski announced that homeowners in the state will receive one-page summaries of their existing policies.
"As we worked with New Jersey consumers following that devastating storm, we saw that some homeowners didn't fully understand their homeowners insurance policy," said Commissioner Kobylowski. "For example, some consumers believed that homeowners policy covers flood damage. It does not. Flood insurance must be purchased separately."
Kobylowski described the summaries as "one way the State is working to raise awareness of insurance issues so consumers understand clearly what their policies do and do not cover." Proponents of the measure say this will help inform homeowners about the insurance coverage they need in the event of another disaster.
While this policy may prove helpful for property owners in New Jersey, misunderstanding insurance policies is a national problem that property owners and insurance professionals can address proactively. One of the best ways they can do this is by conducting an annual review of coverage to determine whether more or less is needed. This includes determining a current replacement value that takes any changes or updates to the home into consideration.
Insurance professionals need a consistent workflow strategy to provide the highest-quality valuations to their clients. With e2Value's suite of valuation solutions, agents and representatives can obtain consistent and reliable information about every property in their books. Contact us today to learn more about our flexible solutions for professionals in the insurance industry.