Many people have misconceptions about their homeowners’ policies. They are easy to understand if you have your agent go over them with you. There are a few things you can take note of and ask your agent about. The more information you have about your policy, the better off you will be if you ever experience an event where you will need to file a claim.
Have the Right Policy
Always make sure you have the right policy. There are different levels of homeowners’ insurance, just like you have different levels of coverage for your car. Go over your policy with your agent to ensure you have the coverage amounts you need to protect yourself and your family.
Ask for Replacement Value Coverage
Instead of opting for market value, ask for replacement coverage. If the price of building materials goes up, you won’t be able to afford to replace your home in its current condition. In fact, you may only be reimbursed for a fraction of the cost. With replacement value, you will receive what you need to rebuild your home no matter what the market value is.
Know How Claims Work
It’s important to understand how the claims process works. Your agent will guide you through the process of identifying and documenting the damage and then filing your claim. Once your claim is filed, it will be processed. As soon as it has been approved, you will receive the compensation per your policy amounts.
Create an Inventory
Create a written and video inventory that contains each item’s serial number, model, and the year it was purchased. This is an ideal way to verify all of your possessions. Make sure you give your agent a copy and update it every few months to ensure it is accurate.
Buy Supplemental Coverage If Needed
If you have antiques and collectibles that are worth more than other items that may be similar, buy supplemental coverage to make up the difference and fill in any gaps.
The economy will play a role in your insurance premiums. When inflation is on the rise, you will need to be able to keep up with your increase in premiums. Look into discounts and consider raising your deductible.
Protect Your Condo
If you own a condo, make sure you have sufficient condo insurance. Just like a home, your condo is a huge investment that you will want to protect. Having the right condo insurance is important.
Don’t Forget Flood, Hurricane, or Earthquake Insurance
If you live in areas where floods, hurricanes, and earthquakes are possible, talk to your agent about buying insurance designed for these perils. Without the right insurance policy, you won’t be covered.
Look into Umbrella Coverage
If you want to extend the amount of coverage you have in place, you should look into an umbrella policy. It will help you if a claim is filed that is higher than the cap of your homeowners’ policy. It’s great to have if you are at higher risk because of a swimming pool or other amenities.
Discuss Life-Changing Events with Your Agent
If you experience a life-changing event like the birth of a child or the loss of a spouse, you will want to talk to your agent. They may be able to help you adjust your coverage.
When you need answers about your homeowners’ insurance, don’t wait. Contact the agents at CF&P Insurance Brokers right away. Our team will help you find the perfect insurance policy to fit your budget and needs.