Since owning a home is among the most significant purchases in most people’s lives, most people make a point of buying a homeowners insurance policy in order to protect it. Homeowners are not required to carry insurance on their homes, technically. However, many mortgage companies do require that a borrower secures their insurance before a home is purchased.
Not only is a home an investment, but for many it is one of the biggest symbols of security in their lives. So when buying home owner’s insurance, it is important to know what you are getting. Homeowner’s insurance protects against many potential mishaps, but there are some situations where homeowners are not covered, such as floods, earthquakes, and heavy wind damage. It is important to look closely at whatever policy you choose in order to identify what is covered and what is not. That way you can seek out extra protection if you believe you need it. You can also be prepared to assert yourself if the time comes when you do need to make a claim. In any case, there are several things Wisconsin residents should keep in mind when they are choosing or updating their homeowner’s insurance or related insurance policies.
You are Not Bound to One Insurance Company
The process of buying a home is among the most exciting experiences in many people’s lives. In the middle of that hustle, many people chose a basic homeowner’s insurance policy, only to secure their mortgage and get into their home. Especially if they are competing with other buyers, they may not have the time and energy to fully evaluate their policy and decide whether or not they have the features they need. If this is you, remember – You may have signed a 30-year mortgage, but you didn’t sign a 30-year homeowner’s insurance contract.
It may be that you are comfortable with that basic homeowners insurance policy, but before you make that decision, it is a good idea to go over it with an insurance agent or some other professional that will help you decipher the fine print. As you do this, be sure to ask questions and present possible scenarios from fallen trees to spoiled food. Ask what you will need to have handy in order to make a claim. Ask how often you need to update your home inventory.
What’s Commonly Included
While individual homeowners have different priorities on what they want to have covered, some common elements apply to most homeowners policies. These include;
- Dwelling and Personal Property Insurance,
- Personal Property Floaters (for valuables, such as jewelry),
- Personal liability coverage – for injuries that occur on your property due to your negligence,
- Medical payments coverage for when someone is hurt on your property no matter who is at fault,
- Additional living expenses for times when you may have to stay at a hotel while damages are being repaired
- Additional coverage for the yard or areas surrounding your home
Any of this coverage will have a varying level of protection and/or deductible. With the help of a good independent insurance agent, like Frydach Insurance in Germantown, WI, you will be able to take a closer look at all the possible options, prioritize your coverage, and identify places where you may be able to qualify for discounts so that you can walk away feeling that your home is truly being protected and at a fair price.
What Usually Isn’t Covered
One of the biggest things that many people believe is covered by their home owner’s insurance is damage from flooding. Usually, this isn’t the case. Separate flood insurance needs to be purchased. Keeping this coverage off of the main policy helps to keep costs down overall. Those who live in places where flooding is a bigger problem will usually pay higher premiums than those who aren’t in a high-risk area. Coverage for earthquakes is also limited, as is war-related attacks. Pets are also often not included in the default coverage. Most of these things can be covered by some type of insurance, however. Contact us at Frydach Insurance to help us find the right insurance package for your home.