4 Things To Know About Homeowners Insurance

Here are four things you should know about homeowners insurance.

Why do you need homeowners insurance? These plans offer tons of protection for homeowners, but they’re also required by most lenders before they’ll approve your loan. Given that, let’s talk about four things you need to know about homeowners insurance:

1. Coverage exclusions. Homeowners insurance policies might cover a lot, but they don’t cover everything. For example, many policies don’t cover floods or earthquakes. If these are things you’re concerned about, reach out to your insurance provider and see what your options are.

2. Dollar limitations on claims. Just because you have coverage for something doesn’t mean your insurance will pay for everything. Understand what your limitations are before deciding on coverage.

"Just because you have coverage for something doesn’t mean your insurance will pay for everything."

3. Replacement costs. Let’s say your house is destroyed. If your replacement costs are $400,000, that’s how much your insurance will provide to rebuild the home. However, if your property will cost more to rebuild, you’re responsible for the difference. You can take the cash and move on, but be aware of your replacement cost before committing to a policy.

4. General liability. If someone gets hurt on your property, does your insurance protect you? How well does it protect you? If you have significant assets, make sure your insurance protects those assets.

If you have questions about today’s topic or anything else, please call or email me. I am always willing to help!

 

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