Insights into Homeowners Insurance You Should Know
-
Be mindful of exclusions to coverage; standard policies often omit flood or earthquake protection, requiring separate purchases.
-
Check for dollar limitations on claims, as insurers may cap payouts, particularly for items like stolen jewelry, unless individually insured.
-
Grasp the concept of replacement cost: Your coverage may only fund home replacement up to the insured maximum, emphasizing the importance of sufficient insurance. If your home costs $3,000,000 to replace, but you're insured for $2,000,000, you'll receive $2,000,000.
-
Comprehend actual cash value, where you receive replacement cost less depreciation if you opt not to replace your destroyed home.
-
Understand liability coverage, protecting you against accidents on your property. Ensure coverage aligns with your assets, as there's typically an upper limit on payouts for medical care, court costs, and court-awarded settlements.
It’s recommended to calendar annual reviews of your coverage with your insurance agent. By conducting an annual review, you actively engage with your insurance coverage, adapting it to your evolving needs and ensuring that you are adequately protected against potential risks.
