If you are a first time homeowner, or just bought a home, congratulations! Owning a home is an exciting milestone, but it comes with its own set of responsibilities — one of which is making sure your home is properly insured. While setting up your homeowners insurance might feel like a one-time task, there’s a lot more to it than just choosing a policy and forgetting about it. Here are seven surprising facts about homeowners insurance that could help you avoid costly mistakes and ensure your home is truly covered.
1. An Independent Agent Can Save You More Than Just Time
You may think buying homeowners insurance is as simple as browsing online quotes, but the truth is, having an independent insurance agent on your side can be incredibly valuable. Independent agents work with multiple insurance carriers, giving them the flexibility to find the best policy for your unique needs. They can also conduct an insurance checkup, ensuring your coverage keeps pace with any updates or renovations to your home, and help you avoid gaps in protection.
2. Water Damage Coverage Isn’t as Clear-Cut as You Think
Water damage can be one of the most destructive events for a homeowner, yet many people are surprised to learn that it’s not automatically covered by all homeowners insurance policies. Standard policies often cover water damage from internal sources, like burst pipes, or damage caused by a storm-created opening. However, floods or damage from broken water mains may not be included. If you live in a flood-prone area, consider adding flood insurance to make sure you’re fully covered.
3. Your Policy Has Exclusions You Need to Understand
It’s easy to overlook the fine print, but homeowners insurance policies come with exclusions that could leave you vulnerable. Common exclusions include damage from natural disasters like earthquakes or floods, or limitations on coverage for valuables like jewelry and artwork. Make sure to thoroughly review these exclusions with your insurance agent so that you’re aware of any areas where you might need additional coverage.
4. Don’t Forget to Update Your Policy After Renovations
It’s easy to assume that once your homeowners insurance is in place, it’s set for life. However, any changes you make to your home — whether it’s a new roof, kitchen remodel, or upgraded security system — can impact the replacement cost of your home. Failing to update your policy could leave you underinsured. Plus, some updates may even make you eligible for discounts, so it’s worth keeping your insurance agent in the loop.
5. Create a Home Inventory for Faster Claims
If disaster strikes, one of the last things you’ll want to do is remember every item you owned. This is where maintaining a home inventory comes in handy. A home inventory is a record of your possessions, and it can make the claims process much smoother. Take photos or videos of each room in your home, and update the inventory regularly to ensure it’s accurate. This simple step can save you time and stress in the event of a claim.
6. Coverage Amount Is Different from Market Value
Many homeowners mistakenly believe that the coverage amount on their insurance policy should equal the market value of their home. However, the cost to rebuild your home after a loss could be significantly higher than its market value due to factors like debris removal, material costs, and labor expenses. When selecting coverage, ensure that it’s based on rebuilding costs, not just the home’s value on the market.
7. Cheaper Insurance May Not Be the Best Option
We’ve all been there — scouring the internet for the best deal. But when it comes to homeowners insurance, cheaper isn’t always better. While the price may seem right, you need to look beyond the cost and evaluate the company’s financial strength, customer service reputation, and claims handling process. Sometimes, paying a little extra for a more reliable insurer can offer you greater peace of mind in the long run.
Stay Ahead with the Right Homeowners Insurance
Homeowners insurance doesn’t have to be a mystery. By understanding these hidden details and taking proactive steps to ensure your coverage is comprehensive, you can rest easy knowing your home is protected. Whether you’re updating your policy, creating an inventory, or comparing insurance providers, don’t let your homeowners insurance become an afterthought.
Our experienced team of agents at Arthur Blake Insurance are awaiting to assist you! Our agents in Plano, TX can help answer all of your questions and ensure you receive the best premium coverage. Contact our agency here or call (972) 954-6383 to speak with a local agent today. Let us help you secure better coverage at a price you can afford!