Do you actually know what your home insurance policy covers and doesn’t cover? If you can answer “yes” to that question, you’re in a pretty good spot. Value Penguin found that 47% of homeowners claim they are unsure what their insurance covers. It’s also quite likely that other people have misconceptions about what is and isn’t covered. Given how important insurance is, it’s a wise idea to regularly review, and if necessary, update your insurance policies. It’s also wise to work with professional insurance agents to better understand specific policies.
Some Things Aren’t Covered Under Standard Home Insurance Policies
Home insurance can provide protection from many events. However, not everything is covered under the standard insurance plan. For example, most standard insurance plans won’t cover damage caused by flooding. These events are considered “acts of God” and because the damage is so widespread, insurance companies can’t afford to cover all of the damage. It’s possible, however, to take out flood insurance plans, many of which are backed by government authorities.
Floods aren’t the only thing that typically isn’t covered under a standard insurance plan. Many plans also won’t pay for damage caused by earthquakes or other earth movements (like sinkholes). Acts of war and nuclear accidents might not be covered as well.
By regularly reviewing your insurance policies, you can find gaps in coverage. If you find a gap, you should assess the risks and then consider updating your insurance policy to increase coverage. You might also opt to take out separate insurance plans to cover the gaps. Besides evaluating your home insurance, it’s also smart to analyze other policies, like auto and health insurance.
Keep Deductibles and Co-Pays in Mind
Many insurance plans feature a deductible and coverage may not kick in until you pay a certain amount out of pocket. If you’re tight on money and don’t have an emergency fund to cover any deductibles, you might want to select an insurance policy with a lower deductible. On the other hand, if you’ve built up considerable savings, selecting an insurance plan with a higher deductible could save you money on premiums.
Do you need help understanding your insurance plan? Want to close gaps and increase coverage? Contact AOAWest today and we can provide assistance with home insurance. We can also help with other types of insurance policies.