Some Tempe home buyers may not realize that home insurance isn’t a generic thing to be bought once and never thought about again. Likewise, cheaper rates do not always mean better or worse coverage, only different. For the best “deal” on insurance, it is a good idea to read each policy carefully and ask lots of questions. Or, just keep reading.
What is Covered by my Home Insurance?
What home insurance covers is almost as long a list as the companies who offer it. Your policy can cover the building or property itself. It might also cover some, or all, of the belongings inside. You might also be covered for liability, which means that if someone is hurt on your property, you are covered for some, or all, of the cost of doctor’s bills or a resulting suit.
It is important to note that not all coverage is equal. You may be covered for the actual worth of the home or items in it, or you could be covered for replacement costs.
This means that if your toaster overheats and starts a fire in the kitchen, you might get two very different sums of money for a claim. In one case, you might get the amount your insurance company feels it would take to replace or fix everything that was harmed. In the other, you might only get what the company believes those items were worth. If your kitchen is old and has old appliances, you might get a very small check.
What isn’t Covered by my Home Insurance?
Usually, flood and earthquake insurance are not included in a normal policy. If you live in an area where this could be a problem, you can often purchase additional insurance to cover these events. Some policies or companies do not include other natural disasters like hail or wind damage without additional riders.
It is very important to closely inspect your policy to make sure that there are no holes that could harm your family’s financial future. If the worse happens, you want to be covered. After all, isn’t that what insurance is all about?