Insurance and Finance

4 Spooky Insurance Horror Stories

By Abi Grise Morgan 10.4.21

This Halloween, we’re bringing you 100%-true insurance horror stories, courtesy of Rodney Hooper, a Texas Farm Bureau Insurance Agent in Rockwall. Gather round for troublesome tales of woe … lurking liability claims for side-hustles at home! Narrow escapes from the grips of an inflated housing market! And the most frightening of all: coverage denials from not-so-neighborly agencies …

Tonight, you might need to leave the light on.

1. It Was a Dark and Stormy Night

No, really. In Texas, dark and stormy nights are prime time for residential property damage.

“I have four or five contractor friends who work on roofs. Texas is rough on roofs. We have storms, hail damage, wind damage,” Hooper says. “Without naming names, contractors says that some insurance companies are notoriously difficult to work with when there’s a roof claim. They’ll only cover part of the roof, for example. Homeowners have to fight tooth and nail to get the coverage they were promised. Texas Farm Bureau Insurance does a great job taking care of our customers so they never have to live through that horror.”

It pays to have an insurance policy built by Texans with Texas weather conditions in mind.

2. A Side-Hustle Horror Story

With many people picking up side-jobs at home these days, it’s important to know if you need commercial insurance for your residential property. One of Hooper’s clients was lucky they didn’t have to learn the hard way.

“My client had a dog breeding business on their property and had no idea they needed commercial business coverage until we discussed it. Fortunately, we got them covered with liability insurance in case a customer filed a lawsuit for an event such as a dog bite or accident. They now have some peace of mind.”

3. Nightmare on Cheap Street

The biggest, baddest wolf in insurance is a lack of understanding.

“Especially when looking for an auto quote, people often want the cheapest they can get within reason,” Hooper says. “They don’t always realize that their family is worth X amount of money, including their assets, and all of that is exposed to being sued. If you go cheap on your policy and have a higher net worth, you could have insufficient coverage.”

That’s a good reminder to always “know your worth.”

4. A House Haunted by Inflation

This year has been a wild ride for the housing market. The average home price is up 13% from last year. Homeowners everywhere are over the moon with their return on investment. But all too often, they forget to adjust their policy to reflect their home’s updated value.

“Especially with the pandemic, the prices of materials and the value of your home have changed,” Hooper warns. “Labor and parts cost more now. So you need more coverage. One of my clients recently discovered they were about $60,000 short on coverage for their house, since the value had gone up. Fortunately, we adjusted their policy. If a tornado had come and wiped out the house and they hadn’t adjusted their policy, that’s $60K they wouldn’t get back.”

Beware! And Be Prepared.

In the best-case scenario, you never have to file a claim in your life. But it’s always important to take the time to make sure your policy is up to date in case you need it.

“I used to be a teacher,” Hooper says. “As an Agent, I still teach — I give you the information. But you’re the one making your own decisions. You have all this time to build up equity in your life, and I don’t want you to lose that.”

A chilling message — because it’s true! Don’t become a victim of an insurance horror story. Call your Texas Farm Bureau Insurance Agent today to review and update your policy.

Coverage and discounts are subject to qualifications and policy terms and may vary by situation. © 2021 Texas Farm Bureau Insurance