Homeowners insurance covers the costs caused by damage to your home and its contents. This insurance reimburses you if visitors to your property are injured and pays out losses due to theft. Your insurance policy may also pay for living expenses, like hotel stays, if your home becomes uninhabitable. Read on to know some important things when it comes to buying homeowners insurance.
Go to An Independent Insurance Agent
Shopping for homeowners insurance through an independent agent can be your best option since these agents aren’t beholden to one insurer and can compare policies from various companies. Insurance agents take many factors into consideration when offering you a policy and its cost.
This includes the following:
-The size of your house
-Prevalence of natural disasters
-Your credit history
-Your neighborhood’s crime rate
Understand What’s Covered
When buying homeowners insurance, it’s very important to get covered for the perils you want to be protected against and for the items that you want to be compensated for if they’re destroyed or stolen.
Perils That Are Not Covered
Generally, homeowners insurance policies may not cover damage caused by the following things:
-Nuclear disaster
-Animals, including termites
-Mold
-War
-Failure to do routine maintenance or make repairs
-Government action
-Loss of power
Understand how Claims Get Paid
In most situations, you’ll have to pay a deductible before your insurer begins paying on your claim. You’ll also have to provide proof that you experienced the losses you’re claiming. There are a few ways a claim might get paid. The basis of the claim you’ve chosen will be spelled out in your policy.
Here are a few examples-
-Actual Cash Value (ACV)
-Replacement Cost
-Extended or Guaranteed Replacement Cost
-Cash Out
Don’t Be Afraid to Update Your Coverage
Before renewing your coverage, you must list any big, new purchases and home improvements you’ve made. If you want a higher level of coverage, but are leery of the higher premiums, ask your insurance agent how much you’d have to increase your deductible to get the extra coverage.
