As a homeowner, you need to make sure that your property is protected at all times. You never know what could go wrong and if you aren’t covered by an insurance policy, you could face a lot of expenses that are outside of your budget. For this reason, it doesn’t hurt to get clued up on home insurance policies and learn all that there is to know. Read on to hear about some of the things that you should know.
There Are Three Levels of Cover
Did you know that there are three levels of cover that a homeowner’s insurance policy will typically cover? For example, you’ll find that the three basic levels of coverage include the actual cash value of the home, the replacement cost and the extended replacement cost or value. When picking out homeowners’ insurance, look for all of these key things before buying. If you have a lot of valuable items in your home, you should always ensure that these are covered by your policy.
It Can Include Temporary Accommodation
It is important that you are always on the lookout for any additional benefits of your homeowner’s insurance policy before you buy. For example, if your home were to burn down or need to be rebuilt for any reason, your homeowner’s insurance policy could actually provide you with temporary accommodation. This can cover the living expenses such as renting a new home or a hotel room. If this isn’t covered in your policy, you could find yourself in hot water if something were to go wrong.
What About When You Are Selling Your Home?
If you are selling your home, you will likely have strangers coming over to check it out. So, what happens if someone is injured when walking down your stairs or somewhere else in your home? Your homeowner’s insurance policy won’t always cover this but if your real estate agent has real estate insurance, this might be covered under liability. For this reason, it doesn’t hurt to check that your real estate agent has this kind of cover.
Natural Disasters Aren’t Always Covered
Finally, you should note that natural disasters aren’t always covered by your homeowner’s insurance policy. So, if you live in an area that is prone to flooding, earth tremors or hurricanes, you might need to find some additional cover. These types of natural disasters are known as ‘Acts of God’ and can destroy your entire home. Look out for riders or extra policies that can help to ensure you are covered whatever the weather.
Keep This in Mind
Now that you know a bit more about homeowner’s insurance policies, you can ensure you have the right type of cover. Usually, insurance providers will offer all of the small details and so it is up to you to check these out to make sure that you are not making the wrong decision. Cover everything in your home and opt for additional cover if you live in a high-risk area.