Importance of a Comprehensive Homeowner Insurance Policy

For most people, their home is their largest asset. That being the case, it makes sense to do everything possible to protect it. Among other things, this means having a homeowner’s insurance policy that provides you with the right level of protection in case disaster strikes. Your homeowner insurance policy is one of the most important insurance products you own, so it is important to make sure you have the right coverages.

Protect Yourself from the Unexpected: When you are a homeowner, all manner of incidents can occur that can cause damage to your property. The weather is becoming more and more unpredictable, and each year, the East Coast seems to have multiple hurricane threats. When a hurricane (or even the remnants of a hurricane) hits, the high winds, blowing rain, and other elements can do serious damage to your roof and other parts of your dwelling.

Flooding is another common problem. Sustained heavy rain can cause major flooding during major storms, causing issues such as water in your basement. An accident in the home can cause a fire to break out, and this can cause you to lose everything. When you are looking at different policies, you need to pay careful attention to the coverage they provide, because repairs, rebuilding and replacing valuables are often underestimated.

Your Mortgage Lender Will Probably Require Homeowner’s Insurance: Most people have a mortgage on their property, and it is highly likely that your lender will require you to have a certain level of coverage on the home to protect their interests. In most cases, you will need to provide proof to your lender that your policy meets their requirements.

You Need to Understand what your Policy Covers: Many homeowners do not pay enough attention to the insurance policy that covers their dwelling. There are a number of different policies available, and quite often, they will go for the least expensive one. It is essential that you understand exactly what each insurance company is going to cover and not just accept what seems to be the best deal.

Unfortunately, it is fairly common that a homeowner suffers significant damage to their home and then discovers that their homeowner policy will not fully cover the extent of the necessary repairs. They end up having to take out expensive loans to make up the difference, which puts them in a financial hole.

It is worth spending a bit more on your homeowner’s insurance to ensure that you are fully covered. You need to know the limits of your policy and your coverage for certain situations. For example, you may live in a high-risk flood zone, so it may be in your best interests to purchase additional flood insurance through the Federal Emergency Management Agency (FEMA).

Your Situation is Unique: Each homeowner is unique, and each has specific needs that should be addressed within their insurance policy. Think about the valuables that you have in your home. If you have really expensive possessions such as high-quality furniture, jewelry, art or electronics, you can increase your coverage limits and/or add riders to your policy to account for this. 

You need to take a good look at all of the options available and know the value of the items in your home. It is all about protecting your assets and preventing losses if you need to file a claim. This means you will need to know what a homeowner policy covers and just as importantly, what it does not cover.

Where to Find the Right Homeowner’s Insurance: There are many options for homeowner policies, and it can be overwhelming to shop around and sift through proposals from numerous providers. One way to bypass this tedious and time-consuming process is to work with an independent insurance broker. An independent agent has access to several of the top insurers in your state. And because they are not captive to any particular insurance carrier, they are able to shop freely and objectively to find the policy that best fits your needs and budget.