Whether you’re moving into your first home or your fifth home, homeowner’s insurance is always a safe bet. It’s important to know about its coverages, as well the other policies you might need to make sure your home is protected. Since there are so many different types of insurances to choose from, knowing what’s available before settling on a property can make a world of difference. Keep reading to see some common mistakes homeowner’s make and give you an insight on ways to avoid following suit.
What is Homeowners Insurance?
Homeowners insurance is a form of property protection that covers damages to an individual’s house and the assets within. Additionally, this insurance also serves as liability coverage against accidents that may occur in or around the home, such as water damage or fallen objects. To learn more about what homeowner’s insurance entails, check out one of our previous blogs.
3 Common Mistakes to Avoid:
- Underinsuring your home. Failing to have enough insurance to cover the cost of rebuilding your house is one of the biggest mistakes we can make as homeowners. Many of us buy just enough insurance to cover our mortgage, which may equal only 80 to 90 percent of the actual value of the house.
- Dropping flood insurance or assuming you have it. Generally speaking, coverage for flood and water damage is not included with homeowner’s insurance. If you live near a lake, river, flood plain, or the ocean, flood insurance should be a must. For non-coastal region residents, flood insurance comes in handy for protection against groundwater or extreme weather. To learn tips for preventing flooding, check out this blog about water damage and spring flooding.
- Not taking the time to make an inventory of possessions. While this can be a tedious task, devoting some time towards making an inventory will pay off in the long run. Standard homeowner’s insurance covers more than just the structure of your house. Without an accurate listing of all personal possessions, insurance companies will probably reject the claim (as they need proof to justify a claim).
What Does Homeowner’s Insurance Cover?
Homeowner’s insurance is a fairly large policy. Some of the different aspects covered are:
- Dwelling: Covers the infrastructure of the property.
- Other properties: Detached structures of the home such as garages, sheds, patios, in-ground pools, etc.
- Personal property: Any type of personal possessions or items owned that are stored within the home.
- Liability coverage: Ranges from potential damages to injuries from visitors of the home. Check out this blog to understand everything that falls under liability coverage.
- Additional Living Expenses (ALE): In the event of possible displacement from your home (due to water damage, weather, etc.), ALE may provide living expenses, such as meals or hotel accommodations.
Owning a home is a momentous occasion in anyone’s life. It’s important to make sure you have enough coverage to protect your new investment should an accident happen. Using the above information, your next step is to speak to an insurance agency. Think about contacting TJ Woods insurance: we’re an independent insurance agency where our one goal is to get you the best and most comprehensive coverage, regardless of carrier. Contact us today to get started.
