It's time to have a heart-to-heart with your homeowner’s insurance agent. Knowing what is covered is an essential first step when it comes to your insurance policy. The last thing you want is to be left high and dry after a disaster. Get the facts straight now! Get your agent on the line and ask them these 6 critical questions:
1. What type of policy do I have? Replacement coverage, or market value?
Replacement cost covers repairing or replacing your entire home. Market value is how much someone would pay to buy your property and possession in its current state or condition. While a policy based on market value is typically cheaper, it will only cover partial expenses after a loss. Talk to your insurance about which homeowner’s policy you have!
2. What type of damage is covered by my policy?
While it might be a surprise, not every type of damage to your home is actually covered. A standard homeowner's insurance policy gives you peace of mind when it comes to the structure of your home, personal belongings, and liability. But it might not cover the damage resulting from a natural disaster, especially if your home is in a high-risk area. The best thing to do is to talk with your insurance agent and get clear-cut answers on what will and will not be covered in the event of a disaster. The next step to take is to find additional coverage to fill the gaps in your HOI policy.
3. What is NOT covered by my policy?
Another thing to ask your insurance agent is what belongings are insured and which are not. Some insurance policies limit jewelry coverage to one or two thousand dollars. If you have jewelry worth more than that, there is a chance you will come up short! Another thing to watch out for is if you lose jewelry is lost while on vacation, your insurance might only cover a small percentage!
4. What is the deadline to make a claim for significant damage?
Knowing how long you have to report a claim is fundamental! If you wait too long to file, you may no longer be eligible for benefits! You will have to pay out of pocket for repairs. Make sure to get a precise time period from your insurance agent before a disaster strikes. When a storm does hit your home, play it safe, and request a roof inspection right away!
5. Are there any discounts I can take advantage of?
Ask about potential discounts! The best way to save money is to ask how you can. There is always the potential for bundling and saving.
6. What can I do to reduce premiums?
Ask your insurance agent if there are steps you can take to reduce your premium! For some policies, having a working smoke detector can lower your insurance quote. Insurance companies price policies on the potential risk they see. By taking preventative measures to avoid disasters, you can help lower your premium!