You never know when something bad is going to happen. From either mother nature or a water pipe bursting in your home.
When you buy insurance for your home it is not always just about protection from damage or even from theft. Often it can provide a great peace of mind just knowing that your home and loved ones are covered if something does happen. When something tragic does happen the last thing you want to worry about is money.
This is why we have assembled the things every homeowner should know.
- What does it cover?Typically an insurance policy will pay if your property suffers damage. This can cover multiple things from fire down to vandalism or even theft. It will also provide liability protection in the case that someone was to suffer an injury on your property and then chooses to sue you. A good policy will also cover displacement, if you have to stay at a hotel for a short time due to an issue with your home.
Insurance will also cover things outside of your home as well. If someone breaks into your car and steals things, often an auto policy will not cover this. However, a homeowners policy will. Did you know that a homeowners insurance policy will also cover things lost while traveling? If the airline loses your bag you can file a claim, to be reimbursed. Make sure to file the claim with the airline first, as they are probably going to want this documentation to prevent fraud.
- What they do not cover.
Your typical policy is not going to cover certain things. Typically this involves things like earthquakes, landslides or sink holes. They also do not cover faulty repairs and things like wars or governmental actions.When it comes to water damage this is where things get a little tricky. The best way to look at this is if the water comes from above the ground you are covered. So things like rainstorms busted pipes (in the house) are typically going to be covered. While water that comes from below the surface generally is not going to be covered. So things like backed up sewers ground flooding from raised water tables. If you live in an area that gets a lot of floods or earthquakes. You should really look into supplemental coverage.
- Ways to reduce premiums.
Adding simple things like smoke detectors, deadbolts things like this can normally drop your rates by 5%. But, did you know adding a security system to you home can drop rates anywhere from 15 to 20%?your premium price is based on how much of a risk they foresee. This means you can drop the premiums by lowering the liability risk. By taking preventive steps you not only protect your property and loved one better. You save money in the long run.
- Write down everything.
Make sure you keep great records of everything you have. This includes serial numbers receipts even pictures if you can. You can store these in the cloud on places like Google drive or dropbox. Many claims end up getting denied simply due to not having enough evidence that you actually had or owned the items.
- Keep up with maintenance.
By staying up on maintenance in your house you can detect things early enough before they become a bigger issue. One thing you should always do is keep a close eye on your water bill. An odd spike could mean that you have a water leak somewhere.
While this is not a complete list of everything you should know it is a good place to start.