When you buy a home, your next step should be to insure it. After all, by buying coverage, you’ll receive protection against multiple losses that might only prove inconvenient but also expensive. However, it’s important for every homeowner to buy the policy that is most specific to their property.
You’ll need to choose coverage that can adapt with you to any changes you make to the property while you live there. However, all homeowners insurance will include limitations and exclusions that might not make it fully protective of every risk you want to cover. Always review your policy and ask yourself a few questions about the policy you select. This will help you make sure you have the right policy.
Does the policy cover remodeling?
Any change you make to your home might change its value. Therefore, you might need more money to help you recover from property damage or other losses. As you plan to make changes in your home, you will need to update your property coverage to include this additional value. Should you have to make a claim, you want to have the ability to fully repair your home from the ground up, if necessary.
Have I bought new possessions?
Homeowners policies will include coverage for the contents of your home. However, as you buy new or unique possessions, then the value of your contents will increase.
To update your homeowners coverage to address this risk, you might need to take a couple of steps. First, you should consider increasing your overall possessions coverage limit to include the value of new items. If necessary, you should also buy scheduled item riders to include specific coverage for particularly unique belongings such as jewelry, art or collectibles.
What Exclusions Are on the Policy?
Nearly all homeowners policies will exclude certain types of claims. For example:
· Most policies exclude flood damage, and to get coverage, you will have to buy a separate flood insurance policy.
· Other policies might cover earthquakes, terrorist acts or falling objects.
· Your policy will never pay for damage from normal wear & tear.
If you live in an area that is prone to certain types of losses, then you should ask your home insurer how you can best augment your coverage to your benefit. They can work with you to expand your standard coverage or help you enroll in a separate policy.
How Much Liability Insurance Is Available?
Nearly all homeowners policies will include liability coverage. It will help you respond to claims made by third parties who claim that you mistakenly or negligently harmed them.
While most policies will include expansive liability coverage, the limits still might be less than you want. Therefore, you might choose to buy expanded liability coverage or a separate umbrella liability policy. Your coverage should match your present level of risk, which might change over the years.