If you own a home, you’ve had to get home insurance at some point. The whole home insurance idea is to give you extra cash to rebuild or repair your home if you encounter losses someday.
Most people believe that understanding the home insurance policy is difficult. This may be correct, as one needs to pay full attention to all the details in the policy. Some people don’t get how the policy works, though they know they need home insurance.
Do you know what you sign up for when you get home insurance?
Do you understand what your insurance covers or doesn’t cover?
Will your insurance payment be enough to cover all damages when they arise?
If you can’t clarify these questions, you may have to review your home insurance policy again.
Not many people know what home insurance entails; sadly, this is the new ‘home’ normal. In this article, you will understand better what home insurance is about. Get a grasp of what the policy you pay for covers, so you never fall victim to ignorance.
5 Things You Must Know About Home Insurance
So you don’t get surprises, the most important things you must know about home insurance include:
Know the Right Insurance Your Home Needs
Knowing the best policy for your home is necessary. Before setting up a home to your taste, ensure the chosen insurance policy is the best for your home needs.
To make a good assessment of the insurance policies available, look at what the insurance policy offers in these areas:
- Liability coverage
- Your belongings
- Your living expenses, when damages make you leave your home for a while
- Your house structure
The insurance policy should have liability coverage that offers good protection over your property if you get sued. Also, the right home insurance should be able to replace your belongings when disasters arise. In addition, the best insurance policy should cover the costs of living elsewhere as they rebuild or repair your home.
Most home insurance policies meet these criteria at different levels. However, it would be best to scrutinize well before choosing an insurance policy. First, make a comparison of the insurance policies available. Then, settle for the most suitable insurance for your home.
Know What Your Home Insurance Covers and What It Doesn’t Cover
Most people get home insurance, without knowing what it covers and doesn’t cover. Knowing the insurance coverage helps you take necessary precautions to avoid sorry situations.
In this light, the basic home insurance covers:
- Some disasters include heavy wind, hailstones, snow storms, freezing, etc.
- Liability coverage if someone gets injured in your home.
- Shelter expenses for you and your family when your home needs repairing.
- Protection of belongings within your home premises.
- Damage to your home or properties within the premises when there’s a fire outbreak. Home insurance also covers losses accrued during lightning and thunderstorms or theft.
However, common situations where most home insurance does not cover include:
- Damages due to power failure
- Substandard workmanship
- Natural earth disasters include earthquakes, tremors, landslides, etc.
- Situating your home in a faulty zone
- Some water damages
Never take the insurance coverage information with reluctance. The declaration page of your homeowner’s insurance should give you an idea about what the policy covers.
Understand What the Claim Process Involves
No matter what a home insurance policy promises, your benefit from their policy depends on the claim process. More than one insurance policy may promise the same coverage, but how quickly can they fulfill their promises? This makes the most difference if your home suffers damage.
Understand the claim processes the home insurance offers. If you don’t understand their terms, get an agent to explain the claim processes to you.
Ask questions about the claim processes. For example, you can ask questions like:
Does the insurance company pay for everything you lose or only a select few?
Do you get to receive your claims at once or in parts?
Does the policy give you the cash value of your belongings or wait till you replace them before giving you the replacement value?
How long do they take to replace your belongings?
When you ask these questions, you know the best decision based on how their policies work.
Record Inventory of Your Belongings, Keep Records in Safety
Before you get the insurance claims, you must confirm your belongings’ ownership and worth. The confirmation serves as proof of all you need to get insurance for. You wouldn’t want the insurance to deny your claims because you can’t keep good records.
However, taking single inventories of your belongings may be taxing. To ease the task, walk around your home with a video camera. Film everything in all sections of the house as you walk around. Keep the videos, receipts, and inventories of your belongings secured. You can make multiple copies of the video or inventories and keep them in different safe places.
Know the Insurance’s Window Period and Time Limit for Reporting a Claim
Some home insurance policies may come with time limits within which you can report damages. Be sure you are aware of the limits set in the policy and abide by them. To be on the safest side, report damages as soon as they occur. If you wait longer, your home insurance company may not be willing to pay for the damages.
Home insurance is a must-have for any homeowner. By understanding the different types of home insurance policies and what they cover, you can ensure that your family is protected in an emergency.
The first thing you should remember is that no two home insurance companies operate the same way. Yes, they may have similar coverage or meet your insurance criteria at a similar level. However, be sure you settle for the best policy your home needs.
You must ensure that the investment you make in ensuring your home is worth it.
Have you compared rates to find the best policy for your needs? If not, now is the time to do so. Use our tips to get started, and be sure to shop around for the best deal. Your family’s safety is worth it!
Are there other things you think people should know about home insurance?
Let us know in the comments below.