When it comes time to secure homeowners insurance, you may not know where to start. However, rather than settling on whatever policy comes your way, you should take the time to understand exactly what the policy will offer you. Get the answers to these questions to understand your home insurance coverage.
1) What does my policy cover?
Before you settle on a policy, it’s important to understand exactly what it will cover. Generally, homeowners insurance policies consist of four main coverages: property, personal property, personal liability, and loss of use. Ask your agent to go through the details of your coverage with you so you understand your coverage limits, covered perils, and so on.
2) What does my policy not cover?
You also need to understand your policy’s limitations. This means asking your insurer about excluded perils and potential coverage gaps. For instance, most standard home insurance policies will explicitly exclude coverage for flood damages, earthquake damages, landslide damages, pest infestations, home business claims, and so on. Once you understand where your coverage gaps lie, you can speak to your insurer about securing endorsements or other forms of supplemental coverage to ensure you are completely covered.
3) How much dwelling coverage does my policy offer?
Dwelling coverage refers to the amount of coverage that can be applied to rebuilding your home if it is completely destroyed by a covered peril. It’s important that you do not confuse your rebuilding cost with your home’s purchase price or market value. The price to rebuild your home (including labor costs, material costs, and the cost of meeting code) will be totally different than what you purchased your home for. So, make sure your policy is offering the right amount of coverage for your needs.
These are some of the questions that you should ask to understand your home insurance policy. Do you need help securing the right home coverage to meet your needs? If so, then contact us at Mike Leonard Insurance Agency. Our dedicated team is eager to find you the right coverage from one of our many carriers including: Kemper, MetLife, Nationwide, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance.