Shopping for Homeowners Insurance is often rushed and daunting. And exhausting. In the flurry of activity leading up to a Home purchase closing, the harried home buyer may speed through the insurance process with the goal of quick and cheap. Let’s slow down ever so slightly!
Take your time and ask your insurance agent if the quoted policy includes the following 4 vital coverage parts. Your standard Homeowners Insurance Policy covers you in the event of damage from fire, lightning, hail, and explosions. However, these 4 items are not automatically included.
#1: Higher Liability Coverage. The dollar value of an insurance payout in the event of a claim is often the number one most overlooked and undervalued part of a quickly-quoted insurance policy. We like to explain liability coverage to our customers like this: imagine if someone fell on the pathway leading up to your front door. Imagine that person suffered a serious injury, such as broken bones. Now imagine that person, whether friend, family, or otherwise, hires an aggressive Personal Injury Attorney to receive compensation for pain, suffering, and medical bills. Do you think that $300,000 liability coverage is sufficient payout in such a dire event to protect your other cash assets (your bank accounts, your retirement accounts, your children’s college fund)? Whether it is or is not sufficient, do you want to gamble your wealth away with insufficient liability coverage? Consider increasing your Liability Coverage to at least $1,000,000.
#2: Storm Damage. Severe weather over the past dozen years or so has cost Homeowners considerable sums of money. These Homeowners lived in contentment with their homeowners insurance policies thinking they were covered for all kinds of occurrences. When the severe weather hit—storm surges from oceans, rivers, and creeks; high-wind conditions; flooding inside basements from ground water saturation due to heavier than normal rains—too many Homeowners discovered to their dismay the lack of coverage for damage sustained due to severe weather. Discuss flood insurance with your insurance agent.
#3: Power Outages. Should your home lose power for a sustained period of time you could experience loss of foodstuffs due to your refrigerator not functioning. Adding this extra coverage to your policy protects your money…and your food.
#4: Additional Coverage for “earth-movement”. Have an in-ground pool in your backyard? If you live in an area prone to earthquakes, landslides, or sinkholes, you’ll want to add additional coverage to your standard policy to protect your assets and your home against these risks.
We’re happy to spend the time necessary to educate you on the best comprehensive insurance for your Home. Call us today!