The joys of home ownership are many, then there are those other aspects of home ownership we all wish we didn’t have to think about like routine repairs and having to pay for homeowner’s insurance. If you are already a home owner, then you are probably aware of the specific coverage that your insurance policy provides. You may have even had to file a claim or two over the years.
If you are a new homeowner however, it is likely you tried to get the cheapest policy possible that would satisfy loan requirements and help speed the process of your home closing along. Once you get settled in however, it is wise to take a look at the type of coverage and make sure your home and contents will be covered in case of an emergency.
A standard homeowner’s insurance policy will cover:
~Damages incurred by fire, windstorms, hail, lightning and vandalism .
A standard homeowner’s insurance policy will not cover:
~Sewage problems or sewage back up in a basement. Since this can happen in any home, it is very important to purcase a rider (optional coverage) explicitly to cover sewage issues.
~Damages caused by termites, vermin or other pests.
~Damages caused by earthquakes or floods, and some water damage due to flooded basements.
Most new homeowners are shocked to find that floods are excluded in basic insurance policies! If you live in a flood plain then there are optional policies which can be purchased to cover any losses due to those perilous acts of nature. Even if you live in an area that is typically not prone to flooding, you just never know…so in this instance it pays to spend a little more.
Theft may or may not be covered in certain instances, so it is important to clarify the terms of your policy with your insurance agent.
It is totally natural to be thinking about paint colors, new furniture, and landscaping ideas when purchasing a new home or renovating, but it very important to be sure that you have as much coverage as possible on your home dwelling. For more ideas on how to protect your home from loss and damage, check out my post below:
As a homeowner for over 25 years I learned many of these insurance policy ins and outs the hard way when certain losses weren’t covered. It is my hope to save you from the stress and financial loss that can happen as a result of improper coverage. I believe this outline of coverage will be beneficial and should clarify some of the questions you may have about homeowner’s insurance coverage. If you have any more questions be sure to contact your local agent and he or she can help you get the maximum amount of coverage. Don’t forget that you can always shop around for better pricing as well.
Best of luck!