Home insurance is designed to protect your home, but it’s easy to overlook some gaps that can cost you down the line. That’s why it’s important to do your homework so you can make the most of your homeowners insurance. Although homeowners insurance might seem like a straightforward thing, here are some overlooked home insurance claims that you need to know about to avoid significant financial losses.
Dwelling Coverage
When you take out your homeowners insurance, it may seem like you have your dwelling coverage all sorted out. But is your main structure really protected? According to recent statistics, about one in 40 insured homes has wind or hail-related property damage claim, while one in 50 insured homes has a property damage claim related to water damage or freezing each year. Without enough dwelling coverage, it means you are liable to pay out-of-pocket expenses. The problem with issues like wind, hail, and water damage is that they all happen unexpectedly, and being underinsured can negatively impact your budget in the future.
Home Improvements
Chances are, you don’t have enough insurance to cover the cost of your making home improvements or rebuilding your structure in the event of a disaster. Also, if you’re planning to make remodels down the line, it’s important that you fully understand the home insurance coverage for your home.
In that case, you should sit down with your insurance agent because your existing policy might cover renovations. However, if you may be underinsured if you are planning to carry out any major upgrades. In that case, you’ll probably need to increase your coverage limit to suit your future home improvement plans.
Liability Coverage
As a homeowner, you may not enjoy thinking about someone getting injured on your property, but it can happen. Your current liability limits may not be able to fully cover you in case of a mishap. For instance, if someone trips and get injured because of a fall, then you would have to pay fr the medical costs yourself because you’ll be underinsured. Some homeowners are not even aware that they have this type of insurance at their disposal. The great news is that liability coverage insurance limits vary widely, so you’ll be able to find something to suit your budget.
These homeowners insurance claims are only just a few of the claims you need to be aware of. Do you know that you may be overlooking your vacant home insurance as well as your coverage for personal possessions like jewelry? Contact us to learn more.