So you have bought a home and have purchased homeowners insurance in case you were to lose everything. Life is good, right? Well, it may be if you know everything you need to about your insurance coverage. The problem comes when you don’t know what is covered and you are faced with a situation in which you need coverage fast.
This may be the most important article you read today if you are unsure of how your own insurance company works.
1. Anything regarding natural circumstances such as fire, lightning, frozen pipes, ice, and snow is covered. The main thing to remember with this, however, is that these don’t cover ALL natural disasters.
2. Robberies are insured. You may have not thought of this before, as I know I didn’t, but it is the same thing as losing your possessions, so if you find yourself in this situation, call your agent right away.
3. Flood damage is not covered under a standard policy. This is something you need a floater for.
4. Unfortunately, we live in an age when terrorism and war are daily circumstances somewhere in the world. Your standard homeowners insurance policy will not cover this. Neither will it cover earthquakes. I know, it seems that should be covered, but you have to have a special policy for that.
Homeowner insurance standard policies should also cover the items in your home as well as your home itself.
So what about the very expensive items in your home? Should you just assume they are covered? Absolutely not. In fact, if you have a diamond ring, be sure to insure that separately with your agent. I have a grand piano that is also insured separately. These are some important things to remember.
If you use your home for a day care or any other business where people have to come and go, you better have liability insurance. If you don’t, you could potentially owe a lot of money if someone were to get injured and try to sue you.
As you can see, homeowners insurance can be tricky and confusing, but it doesn’t have to be as long as you stay informed. If you are shopping currently for a policy, take your time and ask lots and lots of questions. It is important to make the wisest decisions you can.