Homeowners insurance is designed to cover accidental loss or damage to your home and personal property. Homeowners insurance also covers your personal liability if someone is injured on your premises.
We recommend that every client actually read their homeowners policy to gain an understanding of the coverage and exclusions. Here are at least three things you need to understand about your homeowners insurance.
- What the homeowners policy covers and does not cover. As stated above, a homeowner’s policy typically covers loss or damage to the home and personal property up to the policy limit. It also provides liability coverage if someone gets hurt on your property and decides to sue. Some common policy exclusions are flood, wear and tear, faulty workmanship, and even hurricanes in some locations. It is important that you read your policy to understand what is covered, excluded, and what your rights and obligations are.
- Always have replacement cost coverage. Replacement cost coverage is available for the structure of your home. This allows you to repair the home to the state that it was before the damage took place. Actual cash value coverage is replacement cost less depreciation. The older your possessions are, the less you will recover from the homeowner’s insurance company.
- Know what you can do to reduce premiums. These things will help keep your premiums lower: installing an alarm system or water intrusion system, having a fence around your pool, living close to a fire station, and updating your roof or electrical system.