Are you getting the right insurance coverage for your property? Are you aware of what your home insurance policy is covering? If you are confused and still undecided on what type of policy to avail of, here are some information that will help you understand your options and help you choose your home insurance policy:
First is to know what your home insurance covers. Any home on the property or detached home located on the property together with the items within the home are covered by basic policies. So it is important to make a comprehensive list of the items you have in your home. Living expenses will also be provided for in the case that you are forced to leave your home. Make it a point to discuss everything with your insurance provider.
It’s good to understand what your policy covers but it is also a must to identify what your policy will not cover. Simple home insurance company may require you to add more coverage in natural disasters like, earthquake, tornado, floods, landslides, tsunamis etc. likewise with damage caused by your pets, pest control and contractors working on repairs at your home.
Next is to decide on the amount of coverage you need. Sometimes in our effort to spend the least amount we settle on the minimum coverage available. This is not at all wrong but put in mind that if your property goes through a major damage your simple coverage will not provide for repair cost and replacement of items. Thus it’s essential to determine what you value the most before availing any type of policy.
Strive to be well-informed on different types of coverage. There are two basic forms of policy; the less expensive cash-value policy that insures your property at face value without covering cost for depreciated value and the one with a higher premium replacement cost coverage that will replace your home and items lost equivalent to the amount you have paid. So make sure to know what you need and value before choosing the right plan for you.
Lastly, be bold to ask questions about your policy. If you have special and valued bits and pieces that you are holding onto and high risk items such as pools and spa you might want to ask your insurance provider on how coverage applies to these things. It’s important that you clarify this because basic policies might not include replacing such items in case of theft or damage.