Choosing More Coverage

Posted on: 7 March 2022

If you own a home, there's a good chance you already know that it's essential to have a homeowner's insurance policy. There are numerous ways that home insurance can protect your property and belongings in the event of a disaster or other situations. However, while you may feel like you have a good grip on what to look for in a home insurance plan, there may still be a few gaps in your knowledge. Here are three things you need to know about home insurance.

What It Doesn't Cover

There are many options to consider regarding home insurance, and you are probably already familiar with what most policies cover. Your home insurance will kick in after a covered disaster destroys your home and belongings. If you are responsible for an injury or accident to another, your home insurance plan's liability coverage will take care of it. Homeowner's insurance covers a lot, but not everything. Damage from flooding and earthquakes is typically not covered by your homeowner's insurance and requires separate policies. 

Your Insurance Needs Will Change

Another thing to know about homeowner's insurance is that your coverage needs will likely evolve. The home insurance plan that works for you now probably won't meet your needs a few years down the line. The longer you live in your home, the more likely you will be to renovate it and add new features. It's also common to accumulate more belongings as you spend more time in your home. Your home insurance needs to reflect your current situation, not the one you were in when you selected your policy. Looking at your home insurance once a year is recommended to ensure your policy suits your needs. 

Claims Can Be Denied

Home insurance is a necessity, but there are situations where you may have a claim denied. Some obvious issues, like late or missing payments, can lead to claim denial. One thing you may not know is that failing to maintain your home or neglecting necessary repairs can lead to your home insurance company rejecting a claim. If you ignore a needed repair or maintenance and damage results, your insurance company may not cover the damage.

Home insurance is very important, and there are a few things to know about this type of coverage. First, knowing what homeowner's insurance doesn't cover is vital. Second, evaluating your coverage requirements once per year will help you maintain coverage that suits your needs. Finally, there are situations where your claims may be denied, so stay up-to-date on your payments and maintain your home.