Homeowner’s insurance isn’t an option for most new buyers. If you have a mortgage, you’re going to need homeowner’s insurance. Even if you don’t have a mortgage, it’s a good idea to have protection. What about renters? Should they be covered, too?
Take a look at these five things you might not have known about home insurance.
Note: For details about specific costs and policies or for more complex questions, contact your insurance provider.
Renters Need Insurance, Too
Your landlord’s property insurance covers the building, not your possessions. If a pipe breaks and your rental floods, your personal property isn’t covered unless you have renter’s insurance. It’s not as expensive as most people fear, averaging about $12 per month for $30,000 of property coverage and $100,000 in liability coverage.
Homeowners Often Underestimate Their Coverage Amount
The amount of coverage you need should be at least what it would cost to rebuild your home from the ground up and replace your current possessions in the case of a catastrophic event. If you’re unsure how much this is, work with your insurance agent to find the right amount for you.
All of Your Things May Not Be Covered Under a Standard Policy
If you’ve got valuable jewelry, art, collectibles, or even technology, the full value may not be covered under your standard policy. There are typically limits for jewelry, art, and other items if you have to file a claim. You’ll want to consider additional coverage for your most costly and valuable possessions.
Standard Policies Don’t Cover Natural Disasters
Think the tornado that blew through your home is covered? Think again. Under most policies, natural disasters aren’t covered. Here in Florida, we’re all very familiar with hurricane coverage but ask your agent about other natural disasters that can hit.
Hurricane Coverage Doesn’t Include Flood Damage
Anyone living on the water is probably very familiar with flood insurance from the National Flood Insurance Program (NFIP). If you don’t have flood insurance, don’t count on your hurricane coverage to protect you when a storm hits and your home is flooded. Even if you think your home won’t be affected by rising waters, flood insurance – especially in our part of Florida – is a good idea to have. The further away you are from water and the higher elevation your home has, the lower the costs will be.
Having insurance for your home and possessions isn’t always enough. You need to make sure you understand your coverage and have enough of it, in case the worst happens.
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