3 Things You Should Check on Your Policy Today
Have you ever thought about what is most important in your homeowner’s insurance policy? If you want to understand your home insurance policy, it’s important to make sure you have the coverage you really need. There are three main areas of your policy to focus on for comprehensive protection for your property. Comprehensive protection in an insurance policy is when you are insured against a wide range of risks and unforeseen events, adequately.
# 1. Coverage Types
– Dwelling Coverage: Make 100% sure that your policy has the full replacement cost of your home as well as all structures on your property, even your fencing! Your agent can help you determine the cost to rebuild your home in today’s market by running a quick replacement cost estimate.
– Personal Property Coverage: Is your policy limit too low or too high? We see this a lot in today’s market, sometimes the limit is preset by companies you may be overinsured. Why pay for more than what you own? You may need a separate policy called an inland marine policy to schedule valuables such as jewelry, guns and collectibles. Never assume everything you own is covered, most policies have preset limitations on specific valuables.
– Liability Coverage: it is imperative to have enough liability protection/limits in case someone is injured on your property or if you accidentally cause damage to someone else’s property. No one likes getting sued, but it happens daily.
# 2. Deductibles
– Amounts: In coastal SC, almost every company sets a minimum amount on your wind/hail deductible and that is normally 2% of your dwelling coverage. All other peril deductibles (anything not related to wind/hail) can range from $1,000-$5,000 or a percentage of dwelling coverage. You can pick which deductible is most affordable to you. But remember, you pay those deductibles out-of-pocket before insurance kicks in. Choose an amount that fits your financial situation.
# 3. Exclusions and Limitations
– Specific Exclusions: In our area, flood damage is specifically excluded on property policies. Be aware of what is not covered under your policy and don’t just assume you have coverage. Read through your policy to see the exclusions.
– Coverage Limits: A lot of policies have caps on damages caused by water on older homes. See if your policy has any caps on specific types of claims, like theft or damage to personal property. This also ties back to valuables and realizing there are certain limits built into policies.
Our homes are our livelihoods. Please ensure that you understand your policy. No one thinks the unimaginable could happen to them, but we see it more than you know. In the event of a total loss, you will need the tools necessary to help yourself recover financially. Reviewing these three areas on your policy does just that!
Submitted by Mary Beth Morris
