5 Often Overlooked Details About Your Home Insurance Policy

Homeowners insurance is a type of property insurance. It covers home and property. It also covers liability should an accident happen to someone else on the property. If damages occur to the house during a natural disaster, a homeowners policy will cover it. Having homeowners insurance is a requisite to mortgaging any property or house. Paying close attention to the details of the home insurance policy can save hundreds of dollars on premiums.

  1. Natural Disaster: Believe it or not, many people do not know what exactly is covered in their home insurance policy. If there is a small amount of storm damage from high winds or pelting hail, the average homeowner will often brush it off and assume the cost and responsibility of repairs. Trees can also cause damage to the policyholder’s home as well as neighbors. With or without a pervading storm, a tree’s limbs can fall to the ground. Homeowners often will not bother to check their policy and just pay for repairs. Check the policy fully when you first purchase it. Know if you are covered if a tornado or hurricane wreaks havoc on your home.
  2. Personal Items: Homeowners insurance is often purchased as a prerequisite to mortgaging the house. Mortgage lenders always necessitate a homeowners policy to protect their investment in the house. What policy holders often overlook, however, is that their personal belongings may not be covered. Fire damage listed on the policy may not extend to personal belongings inside the home or surrounding structures on the property. Personal property damage can cost hundreds and thousands of dollars. Remember to make sure that personal property is covered in the policy. Become familiar with the details of the property to make sure you know what you can claim.
  3. Assessing: Often homeowners will underestimate the value of detailed and correct worth assessment and lose hundreds of dollars or even thousands on personal property. The whole idea of buying home insurance is to protect yourself from having to pay thousands of dollars in repairs. It stands to reason that an accurate evaluation of the home and property is of extreme importance. However, so many homeowners under-evaluate their homes and end up under-insured. This goes for updating the policy as well. Whenever improvements are made to the home and property, such as a adding a backyard pool, they should be reported immediately since insurance companies require that the cost of the policy must cover the damages to the property you insured and nothing that isn’t listed in the policy.
  4. Property Value: Another often overlooked component of homeowners insurance is being uninformed about the actual value of the property. Where the property is located, the surrounding neighborhoods, and structures are all factors that determine value. The constant instability of property values must all be taken into consideration. Insured property and homes should be reassessed for value every five to ten years.
  5. What Isn’t Included: All too often homeowners assume something is covered on their policy that isn’t. All natural disasters are not usually included and may have to be purchased separately. However, minor damages from storms and all acts of God are usually part of the basic policy. A quick survey of the property after a storm can save a homeowner hundreds or thousands of dollars. There are three basic types of homeowners insurance: comprehensive, named perils, and broad. Knowing what type of policy you have is a big part of being aware of what can and cannot be included in it. Comprehensive policies are those that cover everything — including burglary and liability. Everything except things specifically mentioned in the policy. Specific geographical areas do not offer flood insurance or earthquake insurance as part of the comprehensive policy. The named perils type of policy is one that lists specific risks that it will cover.

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