Many people don't read their homeowner's insurance policies and end up surprised when the policy does not cover a claim for them. You should read the policy before you purchase it and at least once a year in case there have been amendments. Examine your homeowner's policy for the following seven factors:
1. Guaranteed Replacement Value
If your home is destroyed in a fire or other disaster, you probably think your homeowner's insurance policy will pay to rebuild it, but this is not necessarily true if you don't have "guaranteed replacement value coverage". Guaranteed replacement value coverage pays to rebuild your home, no matter what the value of your home or current construction costs are. If you don't have this coverage, your homeowner's insurance will only pay for construction costs up to the current value of your home, which may be far below current construction costs.
2. New Construction and Additions
Check your insurance policy before remodeling, repairing or making additions to your home to see if your policy will cover your home after these changes are made. You may need to contact your insurance policy and make changes to your coverage before new construction or additions.
3. Endorsements for High Value Belongings
Homeowner's insurance policies typically cap out on the price that will be paid out for damaged or stolen items in your home. If you have high valued belongings such as jewelry, artwork, or antiques, you will need an endorsement on your policy to insure they are covered at full value in the event of theft or a natural disaster. An endorsement is an amendment to your policy that lists added coverage. To get high valued items covered, you will need proof that you possess the belonging (picture, receipt or both) and an appraisal of the value of the item, as well as the additional endorsement on your homeowner's policy.
Read your homeowner's insurance policy to see what liability coverage it offers. Many insurance companies require you to purchase additional coverage if you have a swimming pool, trampoline or pets.
5. Natural Disasters
Certain natural disasters such as floods and earthquakes, and acts of war, are often not covered under standard homeowner's insurance policies. If you live in a high risk area for non-covered disasters, talk to your insurance agent about getting extra coverage through private insurers or flood coverage through FEMA.
6. Home Business
If you run a business out of your home, you will most likely need to purchase additional coverage from your homeowner's policy in order to obtain liability coverage for business related activities.
7. Save Money With Discounts
Talk to your insurance agent about possible discounts that will allow you to save money. For example, you may be able to receive a substantial discount on your premium if you install a home security system.
Call Regency Insurance today for your Mentor OH home insurance needs. We can help you get the coverage you need at affordable prices.