subject: Do You Know What Your Home Insurance Really Covers? [print this page] Most of us spend a lot of money on our houses. We pay mortgages, taxes, insurance premiums, and repair bills. This takes up a big share of most family budgets. Despite the importance of our homes, and the money we spend on them, it is surprising that many people do not know what their home policy really covers. Have you taken the time to find out what your insurance does, and does not, insure?
A typical home policy includes coverage for the property and the contents inside the property. There should also be some liability insurance in case a visitor claims that you caused him damage while inside your house. Finally, may policies have some sort of coverage for relocation in case you cannot live in your home because of damage. But finding the right coverage for your own home is more than a matter of finding good prices for a standard policy. You have to make sure you have the right coverage for your valuable assets.
Lots of things may not be included in a normal homeowners insurance contract. Floods are one example. Weather related floods might not be covered under a standard policy. Most home owners have to buy another flood insurance policy. This is particularly true if you live in a flood prone aera. If you are not sure if you have flood insurance, you shold contact your agent or insurer.
What about sewer backups? Are they covered or exlcuded. Sewer backups can cause terrible problems. However, they are not often covered under a typical home policy either. They are also not covered by a flood insurance policy that handles natural disasters. You might actually need to buy another policy to cover this hazard. Again, if you are not sure if sewer backups are covered, you should contact your agent or insurance company.
Did you know that some home policies can even protect your mortgage against unemployment? You cannot expect this to be included in your standard home policy. Some insurers offer it as an extra option though. Not all insurers offer these, and not all types of employment are covered. However, foreclosure insurance may be worth checking out if you are worried about your future employment situation.
Do you think the contents of your home are well covered. A standard policy does cover some loss, but it may not be enough to really allow you to replace you valuables. Think about all of your electronics, appliances, furniture, and clothes. If you had to visit retail stores, and buy it all again, you may have to spend tens of thousands of dollars. If you do not have your home contents well protected, you could be risking a lot.
Geting good coverage for your valuable home is important. Sometimes, it is more complicated than just trying to find the lowest priced deal. Make sure you talk to an agent or company to find out what your policy really covers.
by: Marilyn Katz
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