Important takeaways about home insurance coverage.
A new home is most likely one of the most important investments you will ever make. The second most important investment is homeowners insurance. Before you pick a policy and then forget about coverage instantly, it’s wise to know your policy inside and out. It’s not until a disaster occurs that homeowners finally realize exactly what coverage they do and do not have on their home insurance policy. Here are three important things to always know.
- Your deductible
Your home insurance will usually have several different types of deductibles. Most people tend to focus on the main deductible collected by the insurance company, but be aware there may be more in the event of a claim. If you purchased coverage for earthquakes, floods, or windstorm damage, you might find that the deductible is a percentage of the claim rather than a specific dollar amount.
Every insurance policy has its limits. When you purchase a policy, you select the amount of coverage you need to replace your home and possessions. However, while you might be aware of the two main limits for the dwelling and personal property, you might not realize that there are sublimits for other items. Items such as jewelry and electronics have much lower limits of coverage, regardless of your overall personal property limit. Be sure to read through your policy to understand where these limits apply.
- Covered perils
One of the most common mistakes homeowners make is to not understand the perils covered by their home insurance policy. Most standard policies will cover fire, wind, hail, explosions, theft, and vandalism. That means, if your home experiences loss from an earthquake, earth movement, or flood, you will not have any coverage to help you pick up the pieces. Talk to your insurer to understand what is – and is not – covered so that you can fill in the gaps as necessary.
To find the best home insurance policy to fit your needs, contact Bell Black Insurance today! We serve all insurance needs for those in Idaho Falls, Island Park, Driggs, Victor, Swan Valley, Ashton, and the neighboring communities in Idaho, as well as Jackson and Star Valley in Wyoming.