What You Need To Know About Your Home Owner’s Insurance Policy
When it comes to protecting your finances, few things can be as meaningful as a solid home owner’s insurance policy. If a disaster should strike – tornado, fire, theft – you’ll need a policy in place to safeguard against draining your savings to repair structural damage, replace stolen objects, and more. However, not all insurance policies are the same, so it’s important to know these key items about your home owner’s insurance:
What it Covers
Most insurance policies will cover damage to your home caused by natural disasters. However, many policies don’t include flood coverage. If you life in a flood plain, you may want to invest in a separate policy. Likewise, many home owner’s policies provide full coverage for belongings, but many require a separate type of policy for jewelry.
What it DOESN’T Cover
The majority of policies will exclude earthquakes, landslides and power failures from coverage. Many exclude windstorm coverage in areas prone to tornadoes or hurricanes, requiring home owners to maintain supplemental insurance for such damage.
Why You Should Keep Good Records
Many homeowners see legitimate claims rejected simply because they couldn’t provide proper documentation. Always save receipts, contracts and appraisals for big-ticket items and, if an unforeseen loss occurs, document everything you’re able to do to mitigate damages.
When to File a Claim
Insurance companies don’t like frivolous claims, and it’s possible that your rates will rise if you’re a habitual offender. However, you’ll certainly want to file in the event of a true disaster, and you should consider filing for legitimate, but lesser, damage to your property, too.
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