Skip to ContentSkip to Footer

Beware the Fine Print: How My Online Insurance Left Me Broke and Wet

blog post picture

Overlooked Details: The High Cost of ‘Convenient’ Insurance

As an experienced professional at Preferred Insurance, I’ve seen too many cases where missing a small detail in an insurance policy, like the “roof surfacing payment schedule” clause labeled as “Applied,” led to big problems. This clause, often overlooked in exchange for lower premiums, can have costly consequences. Let’s break it down with two real-life scenarios.

Scenario 1: A 5% Hurricane Deductible

Consider a $300,000 home insurance policy with a 5% hurricane deductible. You face a wind claim for your 15-year-old roof that needs a $25,000 replacement.

  • Hurricane Deductible: 5% of your policy is $15,000.
  • Roof Depreciation: After 15 years, the roof’s value depreciates by 75%, leaving only 25% covered by insurance.
  • Insurance Coverage on Roof: 25% of $25,000 amounts to $6,250.

Here, you’re responsible for the entire roof replacement cost because your deductible exceeds the insurance coverage.

Scenario 2: A 2% Hurricane Deductible

Now, with a 2% deductible:

  • Hurricane Deductible: 2% of your policy equals $6,000.
  • Insurance Coverage on Roof: Still $6,250.

The insurance covers just $250, leaving you with a hefty bill.

The Misleading Charm of Online Insurance

The allure of certain online insurance providers is their accessibility and apparent lower costs. But these advantages can be deceptive:

  1. Complex Coverage Details: The nuances, like a “roof surfacing payment schedule,” can dramatically alter coverage outcomes.
  2. The Need for Tailored Advice: A local agent’s expertise is invaluable for understanding these intricacies.
  3. Advocacy in Times of Need: Having someone to negotiate on your behalf during claims is crucial, something local agents excel at.

The Perils of Short-Term Savings

Opting for a policy with a lower initial cost can lead to significant, unforeseen expenses, as shown in our examples.

Why Choose Preferred Insurance

At Preferred Insurance, we ensure you understand every aspect of your policy. Our commitment goes beyond selling insurance; it’s about securing your peace of mind.


Selecting the right home insurance is more than just looking at the premium. It’s about understanding what you’re actually getting and ensuring it meets your needs. Let Preferred Insurance be your guide to a policy that truly has your back.

Get A Quote

* indicates required fields

This field is for validation purposes and should be left unchanged.

Customer Reviews

Justin was always responsive.

—Angela M.

Fast service and great customer service.

—John H.

Justin really went above and beyond! Highly recommend!

—Sara V.

Justin was great. Answered my questions and got back to me in a timely manner.

—John L.