Most homeowners know how important home insurance is—but few truly understand all the details of their coverage. Not knowing these details can be costly.
1. Gaps in Coverage
Many homeowners have policies that fail to cover certain types of damage. For instance, flooding isn’t covered by standard insurance policies, yet floods are one of the most common natural disasters. According to Floodsmart.gov, from 2014 to 2018, 40% of the National Flood Insurance Program’s claims were for policyholders who lived outside of high-risk flood areas. While overflowing rivers can lead to flooding, so too can hurricanes, snowmelt, and drainage problems. Homeowners should review their policy with their agent to determine if they are covered for flood damage and if there are any other gaps in their coverage that should be addressed.
Major kitchen and bathroom renovations can increase the value of a home, but they also increase the replacement costs of a home. If you haven’t reviewed your policy in a few years, read through it to make sure all home upgrades are included, and call your agent if you need to make updates. Including these upgrades might cost more in monthly premiums, but it can save thousands if disaster ever strikes.
Your home is one of your most important assets, so it’s important to be protected. If you’re not sure that your homeowners insurance policy is adequate, then it’s time for a review.