Homeowners Insurance

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Story Published: Sep 29, 2009 at 5:58 PM PST

By Jackie Watanabe

For disasters like hurricanes, fire and flooding, you need reliable insurance for your home.

But Consumer Reports says most people don't have reliable insurance.

"The problems included delayed payments, payouts that were smaller than expected, and some claims that were denied entirely," said Tobie Stanger of Consumer Reports.

People who had the most problems with claims were with Farmer's Insurance, Allstate and Traveler's - all major insurance carriers.

Consumer Reports says many insurance companies are cutting back coverage.

"Some are imposing high deductibles for windstorm damage," Stanger said. "You might not be covered any longer for mold or dog bites. So you better check your policy to see what's covered."

The key is checking what coverage you'll have if your house is destroyed.

"Insurers are cutting back here, too," Stanger said. "Guaranteed replacement cost coverage, which pays the total bill to rebuild regardless of the price, is very hard to get, and where it's available, it's very expensive."

To make sure you're getting the best coverage, you should compare insurance companies every 5 years. Some good sites to look at are netquote.com and insweb.com. Also, be sure the policy includes adjustments for inflation.

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