When it comes to the responsibilities of owning a home, few things can be as meaningful as a good homeowner’s insurance policy. If a disaster should strike, be it a tornado, a fire or even a theft, you’ll need a policy in place to safeguard against draining your savings to repair structural damage, replace stolen objects and more. However, not all insurance policies are the same, so it’s important to know these four key items about yours:
- What the Policy Covers
Nearly all insurance policies in today’s marketplace will cover damage to your home caused by natural disasters. However, many policies don’t include flood coverage. If you live in a flood plain, you may want to invest in a separate policy. Likewise, many homeowner’s policies provide full coverage for belongings, but many require a separate type of policy for jewelry that is lost, damaged or stolen.
- The Items is Does NOT Cover
Typical homeowner’s insurance policies will exclude earthquakes, landslides and power failures from coverage. Many exclude windstorm coverage in areas prone to tornadoes or hurricanes, requiring homeowners to maintain supplemental insurance for such damage.
- Why it Pays to Keep Impeccable Records
Frustratingly, many homeowners see their legitimate claims rejected simply because they aren’t able to provide proper documentation. Always save receipts, contracts and appraisals for big-ticket items and, if an unforeseen loss occurs, document everything you’re able to do to mitigate damages.
- When You Should File a Claim
It shouldn’t come as a surprise that insurance companies don’t like frivolous claims, and it’s possible that your rates will rise if you’re a habitual offender. However, you’ll certainly want to file in the event of a true disaster, and you should consider filing for legitimate, but lesser, damage to your property, too.
While many homeowner’s insurance policies are similar, they aren’t all the same. It’s important to know the specifics of your own policy, so spend some time learning to understand it, while focusing on the four items above.
Image via Unsplash/Tierra Mallorca
