Insurance is all about preparing for worst-case scenarios, whether it’s a car accident, a health problem, or a death in the family. When it comes to home insu
rance, the principle is the same. While it may sound pessimistic to think of the worst that could happen, the last thing you want is to be caught with your pants down when you need to make emergency home repairs or recover from theft.
Home insurance isn’t just about protecting yourself against structural damage and loss of property, it’s about having the peace of mind knowing that even if disaster strikes, you have a lifeline to reclaim some semblance of stability. Here are 5 more things you need to know about homeowner’s insurance.
1. What’s Included in Your Coverage
Your standard home insurance policy will cover damage to your property and possessions in the event of fire, storms, theft, or vandalism. It also comes with liability coverage, protecting you in case someone is injured on your property and files a lawsuit against you.
2. What’s Not Included in Your Coverage
A standard policy will also have exclusions, such as damage caused by landslides, sinkholes, and earthquakes (also known as earth movements); war; nuclear hazards; power failure; and government action.
While some policies will cover tornado and windstorm damage, some insurance companies will not include this in your coverage if your home is in a high-risk area.
3. On Water Damage
Water damage is a bit trickier.
The thing to remember is that damage caused by water from above, such as rain or faulty plumbing in an upstairs condo, is included in your policy. Damage caused by water from below, such as ground-level flooding or a clogged sewer, usually isn’t. So, if your home is in a flood-prone area or coastal area, considering getting supplemental coverage to protect yourself.
4. Shop for a Policy and an Agent
While it’s obviously important to shop for a policy with great coverage for your money, it’s also important to look for an agent you can trust after signing up for homeowner’s insurance. Some agents will be eager to answer your questions about your coverage before you sign up—after all, they get a commission for each client they close.Not all them, however, will be as helpful when you want to make a claim.
While claims are processed by insurance adjusters, agents can and should still provide support when you want to use your policy.
5. How to Reduce Your Premiums
Homeowner’s insurance isn’t exactly cheap, which is why it pays to take preventive measures to lower your premium. Things like adding a working smoke detector and burglar alarm can actually reduce your premium by as much as 15 to 20 percent. Even installing something as simple as a deadbolt will lower your premium by a few percentage points.
If you have more question about homeowner’s insurance and buying a home in general, talk to the realty specialists of Blue Hen Homebuyers. Call our offices today at 910-802-2222 to learn more about our services.