1. Understanding Covered Perils
The term “covered perils” in the insurance world means certain disasters such as fire, storms, and vandalism. Property damage coverage determines how much money the insurance company will pay to restore your home from damages. However, keep in mind that not all disasters are covered by standard home insurance. Make sure to talk to an experienced agent to know what the plan covers, and then compare home insurance rates.
Some homeowners might assume a standard plan covers any form of natural disaster, which isn’t true. All insurance plans have limitations but can be extended with whatever additional coverage you need. Flooding, for example, isn’t usually covered with a standard plan. Earthquakes also require special coverage.
2. Protecting Personal Possessions
Both home and renters insurance will cover personal property to a certain degree. The extent of available coverage will depend on what’s written into your customized plan. As a homeowner, most of your personal possessions will be covered in the event of a disaster, but some items may require extra coverage. The policy should cover the costs of replacing damaged clothing, furniture, and electronics.
It’s typical for an insurer to cover up to 70 percent of personal property. After that, you’ll be paying out of pocket unless you have added extra coverage for certain items. Remember that insurance rates are primarily based on risks. If you own a rare, irreplaceable antique that costs a fortune to repair, it likely won’t be covered in your standard plan.
3. Liability Coverage to Avoid Lawsuits
Home insurance rates cover liability if someone decides to sue you or a family member for damage done to their property. This part of a typical policy covers damages up to $100,000. To be on the safe side, you might want to raise this limit to $300,000, especially if you have kids or pets that may unintentionally cause damage to your neighbor’s property.
Most people don’t spend much time worrying about who they’re going to injure physically or financially, thus overlooking potential liabilities. However, with a comprehensive policy, you can avoid being caught in expensive lawsuits that exceed your coverage limits.
4. Special Items of Value
Not all personal items are covered in a standard homeowners insurance plan. Certain valuable items, such as jewelry, need additional coverage. The key is to take inventory of all your valuable possessions then present the list to your insurer. Find out what all is covered and what needs extra coverage. Don’t assume any item to be automatically covered just because it’s expensive.
5. Living Expenses During Repairs
Your homeowners policy will pay for living expenses if you have to stay in a temporary place while your home is being restored. This coverage includes hotel and restaurant expenses. You can share some potential scenarios with your insurer and ask what the coverage includes if you are forced out of your home for an extended period due to disaster.
Make sure to find out from different insurance agents the limits to living expenses in case of disaster. One question to consider is whether or not you will be able to maintain your everyday lifestyle.
If you want the best home insurance rates, you must compare different insurance companies, as each one has its own criteria. Generally, a standard homeowners policy covers most of what you need in a crisis, but you still must be clear on the exact details. Contact the experts at 01 Insurance today. We are ready to assist you even during the pandemic.