Homeowner’s insurance is basically protection for your home in the event of theft, vandalism or natural disaster. Any standard policy will cover your home and all the belongings within it. This is usually a package policy, covering both damage to your property and your liability or legal responsibility for any injuries and property damage you may cause, including damage caused by pets, says the Insurance Information Institute. Most damage is covered; however, as with anything else, there are exceptions to the rule, such as damage cause by poor maintenance of the property, flooding or earthquakes. Flood and earthquake policies can be purchased separately. Maintenance is considered part and parcel of being a homeowner — a responsibility you must upkeep yourself. It can be easy to make a mistake when purchasing homeowner’s insurance, so follow these cautionary tales when making a choice.
It can be confusing when looking at the amount of insurance you need for adequate coverage. Insurance companies generally look at the cost to rebuild or replace your home rather than the market price, which is why it’s important to hire a professional to check out the construction and materials used so you get a legitimate estimate of what it would cost to replace your home, advises The Motley Fool. Alternatively, you could call your local insurance office to have an agent come out to your property and do an evaluation. Make sure your policy covers you for the full replacement value of the home — not just a flat dollar figure. This will give you peace of mind in case building material costs have increased, which adds to the price tag of rebuilding. Ask your agent what’s included in the coverage exactly. Most possessions are covered; however, if you have an exceptionally high amount of valuables such as jewelry, art or antiques, you may have to purchase additional coverage above and beyond the standard policy.
In the event a flood occurs at your home, you don’t want to find out that your homeowner’s insurance policy does not properly cover you for extensive water damage. Most policies don’t include coverage for this type of disaster: you have to purchase additional coverage through the National Flood Insurance Program, a federal government subsidized program. Talk to your local insurance agent about this to ensure you are properly covered, as well as what your specific flood risk is.
Just as with any other type of purchase, prices can vary by insurance agent. That’s why it’s so important to shop around and request a quote for various levels of coverage. Your risk level may be the same across the board, but each company may price them out differently, so comparison shopping is a must if you want to save money. Inquire about multi-policy discounts, as bundling your policies can save you big cash in the long run. Nobody wants to invest in homeowner’s insurance, but it has to be done in order to protect your home. You might as well partner with an insurance agent who can maximize your coverage while minimizing your out-of-pocket expenses.
Give Bosworth & Associates a call to see how we can help you select the perfect homeowner’s policy for your needs. Contact us today at 903-561-2621.