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Things You Need To Know About Purchasing Homeowners Insurance

When purchasing home insurance, it is a good idea to know what kinds of coverage are included with your standard policy. Here are the four basic types of insurance you will likely see:

Structure Insurance

Insurance that covers your structures and will help pay for the cost if your home is physically damaged by fire, accidents, lightning, and other weather-related risks. It can often cover other structures on your property as well as fencing, detached garages, and sheds. Your major home systems, such as electrical, heating, and plumbing, may also be covered.

Possessions Insurance

Disasters can bring damage and destruction to the possessions you have inside of your home as well. Personal property insurance covers the contents inside your home. Your belongings, such as dishes, furniture, clothing, and more, may get damaged or stolen by a covered event or thief. Your home insurance policy can pay to repair or replace these items.

Liability Insurance

This is an essential insurance to have. There are times when people even lose their homes if someone is severely injured on their property when they do not have liability insurance. It will protect you against lawsuits and medical expenses that may happen if someone else is hurt on your property.

Loss Of Use Insurance

If your home is unlivable after a disaster or accident, it will need to be repaired. If you rent a place to stay while your home is being repaired or rebuilt, loss of use insurance helps cover the costs. It can also include the costs of food and transportation.

Homeowners Insurance Doesn't Cover Everything

The list of things the standard home insurance plan covers seems to include everything at first glance. There are, however, a number of things that likely aren't covered. They can consist of specific expensive items and disasters, which sometimes have additional riders to increase coverage. While purchasing home insurance can be straightforward, it is essential to look over the list of things that are not included, often called exclusions.

Among the things that might not be included are some types of specialty electronics, fine art, family heirlooms, and expensive jewelry. Getting a simple add-on to your homeowner's insurance will extend your coverage to items that are not covered by your standard policy.

Things your standard policy may not cover are:

  • Flooding
  • Earthquakes
  • Business Related Injuries
  • Injuries From Dogs Deemed More Dangerous
  • Specific Additions, Like Pools And Trampolines
  • Sewage Backup
  • Tenants Making Claims
  • Mold
  • Jewelry And Other Specialty Items
  • Damage From Construction
  • Firearms
  • Instruments
  • China
  • Antiques

Other exclusions may be part of your policy as well. It is crucial to understand both what is covered and what is not when purchasing home insurance.  The smart plan is to read your entire policy. It is also a good plan to let an experienced agent, like those from General Insurance, guide you through the process. Don't be afraid to ask a lot of questions.

How Much Coverage Should I Get 

Most professionals recommend getting coverage for the entire rebuild cost of your home. Having an accurate rebuild value will help you purchase the coverage that makes the most sense. If you end up needing to make a claim after a catastrophe, the few extra dollars spent on higher limits will be well worth it. Without enough new homeowner insurance, you will not be able to rebuild your home if it is wrecked. 

It is also important to note that if you live in an area that can be affected by natural disasters, the costs of rebuilding homes skyrocket due to limited materials, labor, and other logistical difficulties. Additional riders can be purchased to cover these additional expenses and situations. 

As far as coverage for your possessions is concerned, he will want to know the difference between Actual Cash Value and Replacement Cost. These are the two types of personal belongings insurance that get offered. Replacement Cost will pay for the complete replacement of the contents of your home with new ones. Actual Cash Value will use the current market value, including depreciation, to replace the items in your home. This means that Actual Cash Value will subtract depreciation from the replacement cost of those items.  Replacement Cost is considered better but is also more expensive. You also will not need to negotiate the value of the things in your home with Total Cost insurance coverage, which you may need to do with Actual Cost Value. 

You will also want to make sure that you get a proper amount of loss of use coverage in your policy. Staying at a hotel or another place while your house is being repaired due to a covered situation can be expensive.

Lastly, liability insurance is essential. The expenses of from injuries and lawsuits can quickly add up to hundreds of thousands of dollars. The difference between paying for $100,000 and $300,000 of coverage is not a lot when it comes to insurance coverage rates. People have lost their homes due to their inability to pay for lawsuits and medical bills, which is why this coverage is essential.

Final Notes

General Insurance is here to get you the best insurance at top prices. We have exceptional customer service and a smooth claims filing process. Quotes are free, and purchasing home insurance is easy. We look forward to hearing from you.

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