It may feel like you need a degree to understand your home insurance policy. Everyone wants to make sure they are adequately protected against disasters. It's important to remember you are only protected by the peril your policy covers. For example, if you do not have optional flood insurance, you will not be covered. With a variety of coverage and options available, here are some of the basics you may need:
Basic Coverages
*Dwelling Protection. This is how much it would cost to rebuild your home if it was destroyed. Realize this price doesn't mean what your home would resale for. This doesn't include the price of the land. The replacement cost will be calculated by an agent or home appraiser.
*Other Structures Protection. This covers structures not included in your home, which may include fences, a tool shed, or other property. If vandalism takes place and destroys your pool, this coverage can help cover the costs.
*Personal Property. This covers the value of your personal possessions which can include furniture, electronics, and clothing. You can purchase extended coverage to help cover such items as jewelry, watches, and furs. Make sure you calculate the total needed to cover your possessions.
*Living Expenses. This covers your living expenses while you aren't able to use your home. For example, if your sewer backs up and you're unable to use your drains, you may have to relocate until repairs are made.
*Personal Liability. This is important coverage to have. If a neighbor is bitten by your dog, or someone slips in your driveway, this personal liability coverage assists in medical payments, possible legal costs, and covers the injured person's lost wages. It can also cover repairs if you accidentally damaged another person's property, for example, if a tree from your property fell into another person's home.
Optional Coverage
*Natural Disaster. This includes coverage from natural disasters like earthquakes, floods, lightning, windstorm, or hail. Double check what your policy covers for your area, as it varies.
*Building Code Coverage. This will help cover the extra expense with rebuilding to make sure you are in compliance with any new codes and ordinances for your area.
*Identity Theft. This coverage assists with any costs incurred by someone stealing your identity and restoring your credit. This type of protection can be added to your homeowner's insurance or purchased separately.
Finding a good agent to help you navigate the waters of homeowner's insurance is key. They can help explain the variety of coverage and where combining or adding coverage can help you in the long run.
Share12 December 2017
How well do you understand your insurance policy? Although it might seem like something that would be easy to figure out, insurance policies can be incredibly complicated, which is why everyone should invest a little time into reading their policies. I started focusing more and more on insurance policies a few years ago, and I was able to completely overhaul my personal level of coverage. This website is all about understanding insurance policies and qualifying for the right plans. Check out this blog for great advice that might help you each and every day. You never know when you might need it.