Choosing More Coverage

Posted on: 17 September 2019

A house is one of the biggest investments most people make in their lifetimes. Houses are sound but costly investments. In most cases, you will be making mortgage payments for decades to come. That's why it's important to protect your investment with homeowners insurance. Homeowners insurance can help you afford the repair work you need if unfortunate accidents befall your house or belongings. It can also provide you with legal and financial protection in case someone gets hurt while visiting your house. Here are four tips that will help you get started with homeowners insurance:

1. Decide which level of protection you need.

All homeowners insurance plans cover your house and structures that are part of your house; an attached garage would fall under this category. If you have a free-standing garage or another cottage on your property, you would most likely need to purchase a more extensive policy that covers other structures on your property.

2. Add earthquake and flood protection if necessary.

Most insurance policies cover things like burglaries, fires, and vandalism. However, damage resulting from earthquakes and floods aren't usually covered. If you live in an area that is prone to these natural disasters, you may want to add earthquake and flood protection to your policy. This will cost you extra money each month, but the peace of mind it gives you can be completely worth it. Floods and earthquakes can be incredibly damaging, and having financial help to rebuild afterward can be a lifesaver.

3. Read the fine print.

Don't make assumptions about your level of coverage. You don't want to find out that your assumptions were faulty after you've experienced an emergency. Make sure to read the fine print and all the documents of your homeowners insurance policy. You want to understand exactly what you're paying for so you can get all the support that you're entitled to.

4. Ask your insurance representative questions.

If you're still unsure about your policy needs, don't be afraid to ask questions. Your homeowners insurance service is there to help you. Your insurance representative will be happy to walk you through the process. They can clarify anything that you find confusing on the insurance forms and guide you toward the right level of protection for your house and personal items. Just remember to have a budget in mind because you don't want to end up paying more than you planned.