Choosing the Right Homeowner Insurance Policy
Not only do insurance policies vary from one homeowner insurance company to another, but they also vary from one property to the next. And they should, because no two homeowners’ circumstances are exactly the same. You might have a high-priced art collection that requires extra coverage, but your next-door neighbor might be a minimalist with no extra items to cover. And both of you might be in a flood zone near the coast, so you both would require more coverage than homeowners who live in an inland location. That’s why each policy is written individually.
When you seek homeowner insurance quotes, be as specific as possible about what you need. The following will give you an idea of some the aspects you should be aware of as you contact each homeowner insurance company:
The basics
Your actual dwelling, additional structures, personal property and expenses related to loss of the use of your home are automatically covered, but the dollar amounts and deductible levels are up to you. Make sure your insurance agent makes all available options clear so you can choose the coverage that works best with your budget and circumstances.
Mold
Coverage for mold damage isn’t the standard option it once was in homeowner policies. Make sure to inquire whether mold coverage is included in every quote you get, because you can save money if you find a company that still offers it as part of their normal coverage.
Natural disasters
The greater the likelihood you’ll experience a natural disaster like a hurricane, flood or forest fire, the less likely your insurance company will be to cover it. At the very least you’ll have to purchase separate coverage at an additional charge. But don’t let that stop you. If you live in an area you know is at risk, make sure you’re covered.
Computers and luxury items
Coverage varies for computer equipment and luxury items such as furs, jewelry and collectibles. Have a list of these special items available when you get quotes and ask whether your specific items require additional coverage or if they can come under a standard policy. Also, check exactly how much of the items’ value will be reimbursed. This varies from one company to another, so if you have a lot of extra items to cover it’s an important aspect to compare.
Neglect
Insurance companies usually won’t cover expenses caused by neglecting routine home maintenance, such as tree trimming, water leaks or termites. But some companies may cover some circumstances, so find out which those are in advance. Regardless of insurance coverage, it pays to stay on top of routine maintenance by doing regular inspections. A home warranty plan can help, since it covers repairs or replacement for any appliances or home systems that could potentially cause expensive problems.