Whether you are a new homeowner or have had a house for some time, there are probably things about home insurance you didn’t realize. Different types of insurance policies exist to save you from enduring major financial losses in times of trouble, and you can get an insurance policy for your home that gives you additional security. Owning a home already comes with enough risks, and the right home insurance plan can help protect your real estate investment more. If you’re thinking of getting a home insurance policy, here are five things that you should know.
Your Policy May Cover More Than You Realize
It is important for homeowners to understand the full extent of what home insurance can do for them. In addition to covering things like theft, vandalism and fire damage, the insurance policy for your home may compensate you for other types of accidents or mishaps. Some plans cover snow and ice damage along with damage that’s caused by accidental discharges or overflows of water or steam. Damage to personal belongings may also be covered under your policy. Be sure to find out exactly what your policy covers so you can make the most of your insurance.
Deductibles are Often Still Required
Like health insurance, most home insurances do have a deductible required. Even though your home insurance policy will cover many damages, you may still have to pay a deductible out of pocket before the insurance company will agree to pay any extra amounts. Some plans will require you to only pay the first $1,000 while other insurance companies impose higher out-of-pocket costs. It is important to determine exactly what that deductible is before you sign up for home insurance and have that information ready somewhere you can access it easily.
Don’t Delay to File a Claim
Be sure to file a claim as soon as you can. You may be hesitant to file a claim with your insurance company, but waiting too long could result in your claim being denied. Waiting to file your claim will also prolong the amount of time that it takes to receive your money to cover the damages. A reputable home insurance company can process your claim quickly with minimal hassle along the way. If you have any questions, be sure to contact your home insurance company directly for more help.
Be Mindful of Inflation
Inflation can make a big difference where insurance is concerned, and homeowners should be aware of how inflation changes their coverage. The cost to rebuild your home may be more now than the initial construction cost was because of inflation. It’s important to review your policy to find out if your coverage includes an inflation safeguard that automatically adjusts your coverage based on the current building cost. If your plan doesn’t include this safeguard, you may need to increase your coverage if your house is partially destroyed or severely damaged.
Consider Bundling with Other Insurance Policies
Bundling your home insurance with other insurance plans can be a great way to save money while getting coverage for other areas of life. Some companies offer big savings on home, auto, and life insurance plans when they are bundled together as part of a package deal. Getting your plans from the same insurance policy will also save you from having to deal with different carriers whenever mishaps in life occur.
Knowing everything there is to know about home insurance can help you make smarter decisions about your coverage. Review all the details about your different policy options carefully, as this will make it easier for you to get the sufficient coverage that you need.