Your home is a major investment, and keeping it protected is one of your biggest goals. Understanding exactly what homeowner’s insurance coverage protects and doesn’t protect is extremely important.
Not all Insurance is the Same
When it comes to purchasing homeowner’s insurance, there’s no one-size-fits-all solution. While most policies offer basic coverages, your insurance agency will most likely customize a policy for you to ensure that your unique needs as a homeowner are addressed.
What is Homeowner’s Insurance?
Homeowner’s insurance is often a requirement for individuals who have mortgage payments. A policy is made up of coverages that help to cover the costs of repairs or replacements if damage occurs to your home or belongings. Typically, homeowner’s insurance covers damage caused by fire, windstorms, hail, theft, and lightening strikes. The policy may also cover costs if a guest becomes injured while visiting your home. Additionally, most homeowner’s insurance policies include coverage for other structures that you own, such as your garage, tool shed, and fence.
What’s Not Covered by Homeowner’s Insurance
Some natural disasters such as earthquakes and floods aren’t covered by homeowner’s insurance. Termite damage, sewer backups, and water pipe bursts resulting from the homeowner’s negligence may not be covered by the policy.
Understanding Deductibles and Limits
In most cases, a homeowner will have to pay the amount of a deductible before his or her insurance benefits kick in to cover a loss. If your home becomes damaged by a covered event and you have to file a claim, keep in mind that coverage is subject to a specific limit, which is the most your policy will compensate you for a covered loss. However, you can always adjust your coverage limits. When evaluating your limits, it’s important to take your home’s value into account. Also consider the value of your belongings, and assess how much it would cost if you had to repair or replace them if they became damaged.
You can’t always predict when an adverse situation will arise. Fortunately, you can be prepared for whatever comes your way with the right homeowners insurance sacramento policy.