Your home is one of the most significant investments you’re likely to make, and it’s important that you are able to protect it. Homeowner insurance is a way to safeguard your home against any potential damage. Here are a few essential things you need to understand about your homeowner’s insurance:
- Be aware of exclusions to your coverage
You don’t want to wait until after a Washington storm to find out your homeowner’s insurance doesn’t cover flood damage. Stay up to date on what your policy will cover, so you don’t get caught off guard when disaster strikes.
- Look for limitations on your claims
Many policies put a cap on the amount that they will put forward for stolen items unless you insure them separately. When you invest in expensive items, such as fine jewelry or art, know whether you should have a separate rider.
Your policy should have a declarations page that summarizes the percentages that you can expect back on certain items, depending on their value at the time of your claim. If an insurance policy has low limits, you may want to keep shopping around.
- Understand replacement cost
The replacement cost will come in handy if your home becomes destroyed due to unpredicted circumstances. These funds can be used to rebuild your home and restore it to original quality.
The key words here are “unpredicted circumstances” – your policy won’t cover purposeful damages!
- Understand actual cash value
Your actual cash value will be the reimbursement you receive for damaged belongings after depreciation, meaning your insurance provider will take into consideration the age and condition of your claimed items.
Ease any future heartbreak by coming to terms with not coming out even when it comes to insurance.
- Understand liability
In most cases, your homeowner’s insurance will back you up on any medical or legal costs if you are ever sued for accidents that happen on your property. However, you will want to make sure your policy allows for a large enough reserve to handle any worst-case scenarios.