5 Things Homeowners need to know about Homeowners Insurance

Let’s be honest, homeowners’ insurance isn’t exactly a thrilling topic. It sits right next to “reading appliance manuals” on the excitement scale.

But when something goes wrong? Suddenly, it becomes   very   interesting.

The good news: you don’t need to become an insurance expert. You just need to understand a few key things to avoid unpleasant surprises later.

Let’s break it down into things you need to know.

1. Understanding what is and isn’t covered.

A standard homeowner’s policy usually covers:

• Your house
• Your belongings
• Liability if someone gets hurt
• A place to stay if your home is damaged

Not bad, right?

But here’s where it gets tricky—your policy does not cover everything under the sun. There are limits and things which are excluded from coverage, and it is important to understand these nuances. Take flooding, for example. Damage from flooding is not covered by a standard homeowner’s policy; you must purchase a separate policy specifically for Flood Insurance. Your insurance agent can help you understand these limitations.

Which brings us to our next point...

2. Having an insurance agent will make your life easier.

Insurance is   confusing. Having your own personal insurance expert is one of the best tools available. They understand the lingo and can make sure there are no gaps in your coverage.

3. Deductibles.

Many seem to think, “Well, I have insurance, so I am fully covered.” This statement isn’t inherently false; however, if a claim needs to be filed, you are responsible for the deductible amount, so that will be deducted from any claims payments which may be issued. A deductible is the amount that you, the Insured, agree to cover should a loss occur. That means that if you selected a $1,000 deductible when you signed on the dotted line, you agreed to cover that amount if a loss occurs.

4. Your Policy needs a yearly check-up.

Just like your car, your homeowner’s policy needs a bit of a tune-up every now and then. It is important to review your policy each year to ensure you still have adequate coverage. Things like home renovations, high-value purchases, and home updates can change the amount/type of coverage needed.

Just another reason an independent agent is great as they can help you with this!

5. Home Inventories are actually, really important.

Having some sort of record of what you have in your home, from possessions to fixtures to the type of flooring, can save you a HUGE headache in the long run. Should a loss occur, you already have a record of everything you have.

Some tips for inventory:

• Take a quick video walking through your house
• Snap photos of major items
• Save receipts when you can

Friendly reminder, it doesn’t need to be perfect but having a record that is more officially documented than “I’m pretty sure I had a really nice TV” is helpful!

Homeowners insurance isn’t something you need to obsess over—but it is something worth understanding.

Most people don’t run into problems because they don’t have insurance. They run into problems because they thought it covered more than it did.

A quick review now can save you a lot of stress later—and help you feel confident that your home (and everything in it) is protected.

Disclaimer: This is a general interpretation of processes and coverage. All claims are subject to Insuring Agreements, Endorsements, Exclusions, Terms, and Conditions of the Policy.