The Costly Lesson: A Homeowner’s Pricey Mistake
Saving money on an insurance policy can sometimes cost you more in the long run. At Panther Public Adjusting, we recently handled a case that illustrates the hidden risks of choosing a cheaper insurance policy without fully understanding its limitations.
A homeowner opted for a less expensive policy, thinking they were making a smart financial decision. However, this decision ultimately cost them over $50,000 due to a policy restriction they weren’t aware of.
📞 Before you choose a policy based on price alone, call us at 833-726-8437 to ensure you’re fully covered.
Understanding the Policy: The 1% Matching Endorsement
Many homeowners don’t realize that their insurance policy may include endorsements and limitations that restrict payouts for certain types of damages. In this case, the policy contained a 1% matching endorsement, which meant that any repairs required to match undamaged materials were capped at 1% of the total policy value.
📩 Want to ensure your policy protects you fully? Email us at Claims@PantherPA.com for a free review.
The Burst Pipe Disaster: A Shocking Realization
One day, the homeowner experienced a burst pipe, which caused significant water damage to:
- The wall near the pipe burst
- 8 feet of kitchen cabinets
- The floor tiles in the immediate area
The general policy limit covered these damages up to $700,000. However, anything requiring matching materials—such as the rest of the kitchen cabinets and continuous flooring—was subject to the 1% limitation.
📌 Did you know small endorsements in your policy can drastically reduce your payout? Contact us today at pantherpa.com/#contact to find out if you’re at risk.
The Shocking Insurance Payout: $21,000 Instead of $125,000
Here’s how the 1% matching limitation impacted the homeowner’s claim:
- The insurance company paid $21,000 for the damage directly related to the burst pipe.
- However, the remaining kitchen cabinets that needed replacement were subject to the 1% limitation—capping the payout at only $7,000 instead of the $50,000+ required to match the entire set.
- The floor tiles throughout the first floor could not be matched, but only the immediate tiles were covered, leaving the homeowner on the hook for thousands in replacement costs.
Instead of receiving the $75,000 to $125,000 payout they expected, the policy’s limitations left them with just $21,000, forcing them to pay tens of thousands out of pocket.
📞 Think your insurance will fully cover you? Call us at 833-726-8437 before it’s too late.
The Importance of Reviewing Your Insurance Policy
This homeowner’s costly mistake serves as a cautionary tale. Many policies include hidden limitations that can severely reduce your payout when you file a claim. Here’s how to protect yourself:
✅ Review Your Policy Annually – Insurance policies change. What was covered last year may no longer be covered now.
✅ Look for Endorsements & Exclusions – Pay attention to policy add-ons that may limit coverage.
✅ Understand Matching Limitations – Check if your policy has restrictions on material matching.
✅ Consult a Public Adjuster – We can help identify risks in your policy before you ever need to file a claim.
📩 Not sure if your policy has hidden limitations? Email us at Claims@PantherPA.com for expert advice.
Why Working with a Public Adjuster Saves You Money
Insurance policies can be confusing, filled with legal jargon that makes it hard for homeowners to understand what is actually covered. Having a public adjuster review your policy before disaster strikes can prevent you from falling victim to these limitations.
💻 Have questions? Get expert guidance today at pantherpa.com/#contact.**
How We Help:
- We analyze your policy for limitations and exclusions before you file a claim.
- We fight back against insurance companies that try to minimize payouts.
- We ensure you receive every dollar you’re entitled to under your policy.
- We save you from costly surprises that could cost you tens of thousands.
Don’t Let Hidden Costs Drain Your Finances—We Can Help!
If you’re concerned about hidden insurance limitations, let us review your policy for free and help you secure the coverage you deserve.
📞 Call us now at 833-726-8437 to protect your home.
📩 Submit your policy for a free review: Claims@PantherPA.com.
💻 Visit us online for more information: pantherpa.com/#contact.
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Don’t let a cheap insurance policy cost you thousands. Get the right coverage today!