For many Americans, their house is their most valuable asset making homeowners insurance especially important. Homeowner’s insurance protects a home and its contents in the event of a fire, theft, natural disaster or another emergency. Although most homeowners do have insurance, many don’t fully understand their policies, which can be both dangerous and costly.
Here are the top three things homeowners should understand about their homeowners insurance policies:
What is the Amount of Your Home’s Coverage?
Homeowners need to ensure that they have enough insurance to cover the structure of their home, the contents within as well as liability issues. Beware of having too much coverage, though, because that’s where it can get costly. Be proactive by reviewing your homeowner’s insurance policies or call your agent to discuss line items together. Start by reviewing these three things: home structure coverage which should cover 100 percent of the cost of rebuilding a home; home contents coverage which should cover the estimated value of the contents within your home; and finally, the liability coverage which protects homeowners if someone gets injured on their property.
Wait! That’s Not Covered in My Policy?
When homeowners need to understand not only the amount of insurance they have for the structure, contents of their homes, and their liability protection, but what’s not covered by their policy so they can plan accordingly. If you live in a region with a high probability of flooding or earthquakes need to purchase an additional flood/earthquake policy, as the standard policies will not fully cover such damages. If you own a condo, co-op or townhouse instead of a home, then you should ensure that the building has an insurance policy to cover the common areas.
If you own valuable items like jewelry, art, etc., you may need separate policies to protect those valuables, because again, the standard home contents coverage will not cover these items.
Why is My Deductible So Important?
Before insurance begins to cover costs if something happens to your home, homeowners must pay a certain amount of money out of pocket– this is called the deductible. It is critical that homeowners know what their deductibles is and that they have this amount of money set aside in case something happens to their home.
How Can I Get Affordable Homeowner’s Insurance?
Homeowners can save money by simply asking their insurer how they can save money. Some insurers will lower rates if homeowners install an alarm system or if the homeowner also buys other insurance from them, like car insurance. We hope these tips help you in your search for better insurance and make you a more educated buyer. If you are on the market for affordable homeowners insurance, vehicle insurance or even renter’s insurance, contact one of Tio Rico’s friendly insurance agents today.