Homeowners insurance provides crucial financial protection for your home, but it’s essential to understand the specific coverage details. Generally, insurance policies cover a wide range of damages, but certain exclusions exist.
As insurance expert Schafer notes, damage resulting from neglect isn’t usually covered. This includes issues stemming from termites or rodents, roof leaks if you haven’t maintained your roof properly, or basement flooding in the absence of a necessary sump pump.
It’s also important to periodically review your coverage. Updating your insurance policy may affect your premiums, potentially increasing or decreasing them based on your individual circumstances. The primary goal is to ensure you have adequate protection to prevent any financial hardship from unexpected events.
While your coverage might change, the base coverage, which is normally a percentage of your home’s value, should cover your personal property. According to insurance expert Godfread, special addendums are often required for high-value items such as jewelry, artwork, musical instruments, and electronics.
Most policies also include a ‘loss of use’ component, which can cover relocation expenses if your home becomes uninhabitable due to covered damage. However, these policies often have limits. As insurance expert Kent recommends, it’s wise to verify the limit and inquire about extra coverage if needed.
If you encounter questions or issues with your insurance policy, it’s not always necessary to engage a lawyer. Godfread suggests contacting your state’s insurance commission. He explains, “The state insurance commission is there to help resolve problems and help consumers understand their policies.”
