In order to purchase the appropriate insurance for your home it is important to know what NOT to do to better protect your home and family.
Focusing on Price
Whenever we make a significant purchase, we always look at price. It’s important to understand exactly what you’ll be receiving with your homeowners’ insurance. Make sure that your “cost effective” policy isn’t less expensive because important coverage has been removed or because the company has inadequate reinsurance. Just like you wouldn’t buy something that’s missing pieces from a store, get what you need in your homeowners’ coverage.
Purchasing a Policy for the Wrong Occupancy
We own homes for many reasons: to raise a family, to supplement income with rental income or to fill a dream. In order to determine the type of insurance you need make sure you know who is living in your home as it determines the type of policy you should have. There is a different policy for people who own and live in their home as opposed to people who own a home that they are renting, or even people who own that nobody lives in. In some cases, your claim won’t be covered if you have the wrong policy based on the occupancy of your home. If the occupancy of your home changes, make sure you give us a call to review your policy.
Not Understanding Exclusions to Your Policy
Take the time to understand from a comprehensive level what is and is not covered. Your homeowners’ policy is meant to protect you in the event of a major, or even semi-major, disaster.
Thinking Flood Insurance is Included
Many people are not aware that a homeowners’ policy does not include flood coverage. Flood insurance covers your property and/or contents against a storm surges and flooding during torrential rains, hurricanes and tropical storms. Remember that flood insurance is a SEPARATE policy. Please give us a call if you think you may want to add flood insurance. Most often there is a 30-day waiting period required before a flood policy goes in to effect.
Next week, I’ll discuss additional considerations.