Homeowners’ Insurance – What’s Covered And What’s Not

Your home is your fortress. It’s your castle. And it doesn’t matter if it’s just a small one. Therefore, for most people, it represents their single biggest investment. Following are things you should be aware of to ensure you get the best homeowners’ insurance policy for you.

1. Understand what’s covered and what’s NOT. It’s really painful to lose a home or be rendered destitute just because you got a few things wrong. Just to give you a rough idea, your home insurance policy will likely cover these…

a) Damage to your home caused by fire and lightning, theft, smoke, frozen pipes, ice and snow.

Damage caused by terrorism, acts of war, flood, earthquakes and such are usually NOT covered. If you need coverage from such, discuss with your agent.

b) Damage to your home contents (to a certain limit) caused by fire and lightning, theft, smoke, frozen pipes, ice and snow.

But bear in mind that your standard homeowners’ insurance policy will NOT cover very expensive things like your diamond ring, antiques and such. You’ll need floaters for these to be covered.

c) It also has a liability part which will take care of anyone who gets injured on your property. This liability part also caters for lawsuits filed against you with respect to your home.

But do bear in mind that your home liability coverage has a limit. Find out what that limit is. If you’re NOT comfortable with it, get an umbrella policy. This will help you increase your liability coverage amount to any level you want.

Generally, make sure you study the exclusions section thoroughly before you sign the dotted lines. Ask every question you have. Don’t let anyone pressure you. Make sure the homeowners’ insurance policy you pay for is adequate and priced right for you.

To do this right you need to get and compare quotes from a wide range of insurers. I personally recommend that you visit NOT less than five quotes sites. This will help you spot providers who are ready to give you extensive coverage for a lot less.

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