Buying home owners insurance can be complicated at times because there are multiple risks to consider. Buying a home is one of the most significant investments a person can make during their lifetime. Buying homeowners insurance is important because it allows you to protect your investment. Things will run much smoother if you have a safety net in place if your roof suffers damage due to severe weather or an accidental fire victimizes your home. Finding the right home insurance policy that provides full coverage at an affordable rate can be challenging. Here's a look at some important variables to consider.
Your policy deductible is arguably one of the biggest parts of homeowners insurance. Your home insurance deductible outlines the amount you are responsible for paying towards a claim before your insurance takes over. Perhaps you have a specific price range in mind that you're willing to pay for your deductible. Shopping around to receive multiple quotes can help you find a deductible that aligns with your budget. If you've filed a claim because significant damage has occurred in the past, your insurer may add another deductible to your policy based on the previous claim.
Home insurance policies contain exclusions. One of the major ones is flood damage. Many homeowners wrongfully assume that any water damage caused by severe weather moving through the area is automatically covered. Water damage is different from flood damage. Water damage commonly impacts your home by itself, while flood damage is a large body of water that damages an entire neighborhood. You're advised to purchase flood insurance so that you'll be protected in any situation. Adding water backup coverage is also recommended if you stay in an area prone to significant storms and downpours. Water backup coverage protects your property if it is damaged due to sewage backup, water pump leaks, or other issues.
It's important that you take care of your property. In addition to possible exclusions such as flood or earthquake damage, you could also have your home insurance claim denied due to poor maintenance. Failing to perform regular maintenance around your home may cause it to break down faster than anticipated. Mold and termite damage are common claims that insurance companies deny because those issues arise due to poor maintenance. It's recommended that you contact the state to ensure that your home complies with the current building laws and codes.
In addition to your deductible, adding the appropriate coverage limits is another important part of buying homeowners insurance. Imagine being in a situation where the total loss exceeds your policy limits and you're forced to cover the remaining balance out of pocket. This situation commonly occurs in liability disputes. Perhaps someone suffers a serious injury on your property and their treatment costs exceed your liability limits. You'll be responsible financially unless you add umbrella insurance to your policy.
While buying homeowners insurance may be complicated, learning about these variables will help ensure that the process is will be a little easier. If you have any questions, contact the team here at Liberum Insurance today.
Liberum Insurance is an Independent Agency. We have access to top A-rated carriers so we can provide great coverage at competitive rates. Our priority and fidelity are to our clients first.
