HOMEOWNERS: Are You Completly Covered By Insurance?
More often than not, the situation goes like this: your lender requires insurance, and you hurriedly made a decision without truly comparing different policies and likely not looking at additional endorsements or riders. Did you just decide to bundle policies with the insurance company you got your car insurance through 10 years ago?
Choosing the right policy can feel overwhelming, but don’t worry! Whether you're reviewing your current coverage or shopping for insurance, here’s a list of key factors to keep in mind. →
1. Liability coverage – do you have it?
What if someone gets hurt at your home? Good personal liability coverage can protect you from hefty medical bills or lawsuits if an accident happens, so it’s crucial to select a liability limit that properly reflects the value of your assets.
2. Are you protected from natural disasters?
While standard homeowners insurance covers a lot, it doesn’t typically cover damage caused by floods, earthquakes, or other natural disasters. If you live in an area prone to these, it’s worth looking into separate policies for extra protection.
3. What about your valuables?
Personal property coverage generally includes clothing, furniture, and electronics, but check the limits to ensure it covers everything you own. High-value items like jewelry may not be fully covered under a basic policy, so it's a good idea to take inventory and update your coverage if needed.
The Encircle app can help you easily take inventory of your entire home so that you know you’re adequately covered!
4. Does your policy cover the full cost of rebuilding your home?
It’s easy to think your home is covered for its market value, but the actual cost to rebuild can be much higher. With construction costs on the rise, you might be underinsured if you haven’t updated your coverage recently.
5. Understand your deductibles!
Your deductible is the amount you’ll pay out-of-pocket before your insurance covers the rest. If you choose a policy with a low premium but a high deductible (like $5,000), you’ll need to pay that amount first if something happens. Make sure your deductible is something you can comfortably afford.
PRO TIP: It’s always a good idea to review your policy every year or after major life changes (like home improvements or getting new valuables). If you’re unsure where to start or need help understanding your policy, I can connect you with trusted experts who can walk you through it.| Previous Post | Next Post |