Making sure you are insured properly involves more than just making sure you have the right dollar amounts on your policy
( https://insideinsuranceagency.com/much-homeowners-insurance-coverage-need/ ).
You will also want to make sure you are covered against everything you want to be.
Your policy will come with a list of things that are not covered. Here is a look at what that list will likely contain:
- Law and Ordinance
- Earth Movement ( Earthquake, landslide, mudslide, sinkhole)
- Water Damage ( Flood, backup of sewer or drains)
- Power Failure
- Nuclear Hazard
- Intentional Loss
- Governmental Action
This is pretty standard and you will want to talk to your agent to see what is covered and not covered by your specific policy.
Some carriers have an option to add earthquake coverage to your policy. There are some companies that will provide a policy specifically for earthquake and/or landslide coverage.
When talking about flood or water damage, this generally is not referring to leaking pipes or water lines to appliances, that is generally covered (as long as it’s not neglect). What is not covered is water from flooding, backing up of sewer or drains, groundwater, or water from an outside source.
To be covered against flood you would need a separate flood policy. Coverage against the backup of sewer and drains can be added to your regular home policy as an endorsement.
Also, when it comes to personal property, your home policy will have some special limits on certain items.
Each policy will be different in regards to what is on this list and what special limit is placed on these items, so you will want to discuss this in detail with your agent. Here are some things that could be on the list:
- Money, bank notes, bullion, gold, silver, securities, deeds, letters of credit, etc…
- Jewelry, watches, furs, precious stones.
- Silverware and Goldware
- Personal business property
- Musical Instruments
- Fine Art
There are ways of getting additional coverage for some of the items on this list, so if you have any concerns talk to a home insurance expert.
Whether you are looking at a new policy or trying to make sure your current policy is adequate, always make sure your home is covered at replacement cost, you are comfortable with your coverage amounts, you are protected against everything you want to be, and that you know what special limits there are on your policy.
Being insured properly is most important, but we all know how important pricing is. Check out this article on how to find the best inexpensive home insurance policy for you. http://insideinsuranceagency.com/first-time-home-buyers-finding-cheap-homeowners-insurance/