Homeowners insurance helps to protect the investment that you made in your property. A home is one of the largest purchases that people make. Also, it’s often one of the largest assets that they own, so it’s important to protect it and its assets in unexpected circumstances. Unfortunately, many people assume their policy will provide them with all of the coverage they need, but this isn’t always the case. Here are some essential coverage options to consider for your home.
Personal Property Extensions
Most policies have limits concerning the value of items that can be covered or the total cost of your items combined. If you have pricey belongings, such as artwork, jewelry, and expensive electronics, you may need personal property extensions to cover the value of your more costly possessions. Be sure to verify what percentage of the policy protects personal belongings in the event of a theft or fire. Your plan may offer the option of decreasing or increasing the dollar limit of goods protected.
Replacement Cost Over Market Value
Homeowners insurance will typically pay you market value for any items of yours that are covered by an event, such as a fire or burglary. According to the Insurance Information Institute, nearly 98% of all home insurance claims filed were in response to theft. Market value is not always the same as replacement cost, or how much you would have to pay today to replace the item. In most cases, the market value is lower. As such, you may want to consider opting for a policy that offers replacement funds.
Flood or Earthquake Insurance Riders
Lastly, not every natural disaster is covered by your homeowners’ insurance policy. You may need a policy that has riders or standalone policies for natural disasters such as floods or earthquakes. If you don’t add these riders or stand-alone policies, your home won’t be covered if one of these events happens.
Having the right coverage is essential for your homeowners’ insurance plan. Our team of competent and trustworthy agents is here to help you understand the choices that are available to you when it comes to insurance and to help you find a great policy that covers what you need. Call AOAWest now for expert assistance with finding a homeowners insurance policy compatible with your needs.