Many people mistakenly believe that their homeowners’ insurance will cover them sufficiently for any type of loss. The fact is, most homeowners policies are rather basic and may not provide you with the coverage you need. If you aren’t sure what is included in your policy, you may want to schedule a review with your insurance agent. They can help determine if you need more insurance or if you can cut back a bit.
Opting for Replacement Cost or Cash Value Coverage?
Most basic homeowners’ insurance policies insure a home for its current cash value, not its replacement cost. The cost of building materials increases every year. If your policy is only for your home’s cash value, it may not be enough to rebuild your home at today’s inflated costs.
Getting a Base Price for Your Personal Possessions
When you insure your personal possessions, you will normally cover them for what it would cost to replace them. While that is fine for a couch or game system, it may not provide you adequate compensation if you have valuable antiques or fine jewelry. These items will need a separate policy to ensure they are covered for their full value. It will pay to have your valuables appraised so you know their true value and get them insured appropriately. Creating a written or video inventory of your personal possessions is the best way to stay fully protected.
Is General Liability in Homeowners Policy Enough?
General liability is a part of every homeowners’ policy. Most people choose a generic amount without considering the potentially expensive payout in case someone happens to be injured while on your property. Medical expenses go up every year, so you need to ensure you have sufficient coverage for property damage and personal injury. If you don’t feel sufficiently covered with the policy you have in place, you may want to look into an umbrella policy.
Do You Need Special Types of Insurance to Protect Your Home?
Homeowners’ insurance policies have exclusions that are not a part of their basic coverage. Natural disasters like floods, hurricanes, and earthquakes require a separate form of coverage if you expect to be fully covered against any damage occurring from these excluded perils. Different areas of the country are more prone to specific types of disasters than others. If you aren’t sure which types of coverage you need, you may want to speak to your insurer to determine what is recommended for your area.
If you invest money in a homeowners’ insurance policy, ensure you have the coverage you need. Call our team at today Weeks & Associates Insurance Services to make an appointment and protect your investment. If you aren’t sure what your homeowners’ policy covers, schedule a review so you can go over it thoroughly with your insurance provider. This will ensure that your home and property are sufficiently covered for all types of events and natural disasters that may occur.