10 Facts about home insurance you should know


10 Facts about home insurance you should know

Home insurance has been around for a long time. It covers accidental damages to your house and your belongings due to fire, storm, theft, and other natural disasters. If you are planning to buy home insurance, there are several things you need to know. Unfortunately, most people purchase home insurance without understanding the facts and the basics of the policy. Below are ten points you should know about home insurance.

10 Facts about home insurance you should know

1. The basic coverage – The basic policy covers fire, storm, theft, and natural disasters. It also includes liability in case someone suffers an injury in the house.

2. There are different types of policies – when shopping for a home insurance policy, understand there are several policies. Hence, educate yourself about the coverage and the options you have. The most common home insurance policy is HO-3. It protects your home from various damages.

3. Some damages are not covered – home insurance does not include all disasters. In some policies, disasters such as earthquakes and floods are not covered. Also, there are some personal belongings or living expenses not included in the plan.

4. Be cautious with your claims – when it comes to claims; most insurance companies are very tight. And since homeowners insurance does not cover everything, you need to be careful with your requests. Make sure you understand the damages and items included and the type of policy you have.

5. There are discounts – when shopping for homeowners insurance, it is necessary to check for discounts. For instance, if you have installed smoke detectors, you have fire extinguishers and introduced other safety features, you can get a good discount.

6. Home maintenance matters – an insurance company would want to insure a well-maintained house. So, if damages occur due to your negligence, the company can reject your claim. Therefore, keep your home well-maintained by having regular roof inspections, trimming trees, and repairing the leaking pipes.

7. Your credit score matters – your credit score can affect your house insurance policy. If you have poor credit, your insurance premiums will increase.

8. There is claim deadline – if you want to make a claim for significant damages, do it as fast as you can. Most policies have a fourteen-day reporting window. If you miss the deadline, you will have to make repairs on your own.

9. Know the Deductibles – the amount you pay for the damages or expenses before your insurance pays for the claim is called a deductible. Therefore, ensure you know the deductible on your home insurance policy.

10. You need a home inventory – no one would want to have his or her claim denied by the insurance company. To avoid such a disaster, have a list of your items and what you paid for them.

Most people think that spending money on insurance coverage is a waste of money. But when a tragedy strikes, having an insurance cover can save you a lot of money and anxiety. Therefore, consider having home insurance to protect your house and your belongings. To make sure you not overpaying your home insurance, shop around for great quotes.

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