As with most insurances, homeowners insurance isn’t always simple or easy to understand. Since your home is your biggest investment, it’s important for it to have the proper insurance. This means it’s time to pull out your policy and give it a read through.
Here are the 3 major items you need to pay attention to:
Amount of Coverage
Your insurance needs to cover the cost of rebuilding your home in the event of disaster. Many homeowners choose coverage that only covers the amount of their mortgage, which is generally about 80 - 90 percent of the home value. Additionally, many homeowners purchase coverage for the current value of a home, but that is rarely the full cost of a complete rebuild.
Talk with your insurance agent today to understand the amount of coverage you have on your home.
Here are the 3 major items you need to pay attention to:
Amount of Coverage
Your insurance needs to cover the cost of rebuilding your home in the event of disaster. Many homeowners choose coverage that only covers the amount of their mortgage, which is generally about 80 - 90 percent of the home value. Additionally, many homeowners purchase coverage for the current value of a home, but that is rarely the full cost of a complete rebuild.
Talk with your insurance agent today to understand the amount of coverage you have on your home.
What is Covered
Floods, mold and sewage backup are just a few areas that many homeowners expect to be covered but may not be. If you opt for a bare bones, off-the-rack insurance policy you may be putting yourself at risk to cover the cost of these and many other incidents out of pocket. It’s important to know what you need covered, read your policy and ask your agent to summarize everything that is covered.
When you’re buying homeowners insurance on a new home, or if you’re looking to update your policy, there’s no such thing as asking too many question.
Specific Deductibles
Many policies list specific deductibles for specific situations. This means that your deductible for a vandalism may be $1,000 but your deductible for fire is $15,000. This is because many policies set the deductible to be a percentage of your coverage. So depending on the incident, what you pay out of pocket may fluctuate. Ask your agent what the deductible for your policy is so you can be prepared.
If you are uncomfortable with the idea of a fluctuating deductible, then ask your agent to see options for a set deductible, although this will likely have a higher premium.
Understanding the protection you have on your home is so important. If you have any questions about value or need a reference for an insurance agent, reach out to your Realtor® today.
Floods, mold and sewage backup are just a few areas that many homeowners expect to be covered but may not be. If you opt for a bare bones, off-the-rack insurance policy you may be putting yourself at risk to cover the cost of these and many other incidents out of pocket. It’s important to know what you need covered, read your policy and ask your agent to summarize everything that is covered.
When you’re buying homeowners insurance on a new home, or if you’re looking to update your policy, there’s no such thing as asking too many question.
Specific Deductibles
Many policies list specific deductibles for specific situations. This means that your deductible for a vandalism may be $1,000 but your deductible for fire is $15,000. This is because many policies set the deductible to be a percentage of your coverage. So depending on the incident, what you pay out of pocket may fluctuate. Ask your agent what the deductible for your policy is so you can be prepared.
If you are uncomfortable with the idea of a fluctuating deductible, then ask your agent to see options for a set deductible, although this will likely have a higher premium.
Understanding the protection you have on your home is so important. If you have any questions about value or need a reference for an insurance agent, reach out to your Realtor® today.