Homeowners Insurance: 10 Tips to Protect Your Home
Homeowners insurance can be one of those things we set and forget. Most homeowners pay their insurance through their lender. Each month a portion of our payment goes into your escrow account and your lender pays your insurance on your behalf annually. It's a good idea to review your coverage once a year with your insurance agent. Here are 10 tips for making sure you have the right coverage.
1. Ask your agent what isn’t covered. Buyers often select policy based on the price. So, to be competitive sometimes insurance agents will strip down coverage in their estimates. Ask what isn’t covered in the policy, then ask how you can get coverage for those things.
2. Additional Replacement cost: In the event you lose your home, will your insurance pay whatever it takes to rebuild your home at no additional cost to you?
3. Full Roof Replacement: Does your policy pay 100% of the replacement cost for a new roof?
4. Understand your coverage for water backup, leakage, and flooding. Ask your agent what types of situations are covered which are not. Do you need any extra endorsements?
5. New Personal property: There are types of coverage you can get that will replace all items brand new in the event of a covered loss.
6. Service line endorsements: You’ll want to ask for coverage for underground service lines. Things like sewer lines be very costly to replace.
7. Inflation Protection: Get coverage that increases your home insurance policy as the cost of materials like lumber and building supplies increase, and as your home grows in value.
8. Matching undamaged Siding, Roofing, and Windows. If your insurance is covering a replacement window, they won’t always match what you already have unless you have it written into your policy.
9. Equipment breakdown: Ask what coverage is available to you for major home systems and appliance breakdowns?
10. Umbrella policy. This type of policy provides protection and coverage for large home or auto liability claims. It can also help cover costs and protect your assets if you’re sued due to damages to someone else’s property or due to injuries in an accident.
I don't claim to be an insurance expert...your insurance agent should be, though! Give them a call. Or, if you'd like a few referrals, I have a few I've enjoyed working with and would be happy to give your their contact information.