If you have your own home, you must have homeowners insurance. Buying the best homeowners insurance policy may appear to be a difficult undertaking. Homeowners insurance can help you recover financially after a natural disaster or other loss on your property. It protects you against losses to your home and your liability for injuries or property damage you cause to others. Understanding every aspect of the policy before choosing to buy it, on the other hand, will ensure that you get the best value and the most reliable protection possible.
However, there are a few aspects of this insurance that are essential for you, and knowing this information can help you in a variety of ways.
The following are seven commonly overlooked facts about homeowners insurance that you should be aware of:
You can reopen a claim after receiving a check from an insurance company
Even if you have already filed a claim and received a check, you may be able to add claims to it if you discover additional problems later. The only requirement is that the additional claim is filed within a year of the original claim.
Your homeowner’s insurance cannot be canceled by an insurer if there is no valid reason
Unless there is a valid reason, your insurer cannot simply drop you or cancel your policy if you have concerns about your coverage. Instead, they must notify you and provide you with a justifiable reason for terminating your coverage, such as a high number of minor claims filed in a short period of time or an unusually high number of late payments. If a homeowner insurance policy has been in force for more than 60 days, the insurance company cannot cancel it unless very specific conditions apply, such as when the insured party:
- The premium is not paid.
- Fraud is committed.
- On the original insurance application, the applicant lies or makes other false statements.
- Abandons the property or allows it to deteriorate.
Homes near fire stations and hydrants are less expensive to insure
To save money, look for a home in a community with a “highly rated” fire department. If you live in such a community, your insurance premiums may be lower. This is because a faster response from the fire department may reduce your risk of loss.
- Other considerations include:
- The efficiency with which the department receives and dispatches fire
- The community’s water supply is adequate.
Before you renovate your home, you should update your homeowners insurance coverage
Are you thinking about adding a new room or other structure to your home? Before you begin a renovation or addition, it is best to contact your agent. You will need to modify your policy to cover the building materials and any new construction you intend to undertake. By doing this, you can modify your liability insurance to provide protection for the project’s workers.
Your dog may make purchasing comprehensive homeowners insurance more difficult
If your dog bites someone, most homeowner’s insurance policies offer coverage. The liability portion of your policy will typically cover up to $300,000 in damages. Certain dog breeds can make it difficult for you to find an affordable homeowners insurance policy with good coverage. Pit bulls, Doberman Pinchers, Akitas, and German Shepherds are frequently at the top of this list. While they make excellent guard dogs, they are frequently perceived as easily provoked and dangerous to have around.
Dog owners with a history of biting are more likely to face these restrictions. In these cases, your insurer may:
- Decide not to renew your insurance policy.
- Increase your premium.
- Exclude any dog-related damages from coverage.
Purchase reasonably priced water damage insurance to close any gaps
Although your homeowners insurance covers a number of risks, you might want to purchase supplemental coverage for particular kinds of water damage that aren’t covered. This additional insurance is relatively inexpensive when compared to the cost of repairs in the event of water damage.
Your homeowners insurance deductible may be limited by your lender
By raising their deductible, many homeowners attempt to reduce the cost of their premiums. It’s common for your lender to have input into the homeowner’s insurance coverage you choose. High deductibles can reduce the actual payout to the bank in the event that something happens to your property, yet they may produce in reduced rates. Your lender may therefore impose a cap on the amount of deductible you select in order to safeguard their interests.
You might not even be aware of all the aspects of your homeowners’ insurance coverage unless you thoroughly review your policy. Visit our website Amazing Flakes on a regular basis for all kinds of insurance-related blogs!