Knowing these home insurance points can help you protect your property and yourself.
1. There are coverage limits on certain types of property
Standard coverage limits for jewelry, art, business equipment and other costly items are usually lower than what the items are actually worth. Adding a supplemental rider can help ensure that these items are fully covered.
2. Flood insurance is a separate purchase
The average flood claim for U.S. homeowners is about $30,000, according to the National Flood Insurance Program. To protect your home from flood damage, you need to purchase flood insurance. Keep in mind there’s a waiting period—usually 30 days—from when you buy flood insurance until coverage starts.
3. Not reporting home improvements can leave you underinsured
Building a deck or remodeling your kitchen adds value to your home, which increases its replacement cost. Let your agent know of changes you make to your home in order to accurately insure the property.
4. Home maintenance can save you from trouble later on
Removing dead limbs from trees, keeping gutters clean and fixing leaks are just a few of the ways to prevent or reduce damage to your home. If you ignore a problem like a leak in your roof, and the damage worsens, insurance may not cover it.
5. An accident on your property could cost more than your home insurance policy covers
For extra protection, consider the value of an umbrella policy, which can provide you with additional liability coverage, starting at your home policy’s maximum and extending to $1 million or more.