How Do I Figure Out What My Homeowner’s Insurance Covers?
How to know exactly what your homeowner’s insurance covers.
Homeowner’s insurance is always a hot-button topic because of the severe storms common in Florida. Understanding what your homeowner’s insurance covers an important part of the process is because the last thing you want is to be caught unaware when an issue arises. Today, we’re going to briefly discuss what your home insurance policy may or may not cover and go over a few different ways for you to find out the exact details of your current policy.
What Your Homeowner’s Insurance May Cover
Homeowner’s insurance can be a difference maker when life takes an unexpected turn due to damage, an accident, or injury that occurs on your property.
Here are a few pieces of information that you should keep in mind:
Property Damage and Injury Liability
Homeowner’s insurance covers both interior and exterior damage, plus its contents. As for injury liability, this will cover you in the event that someone gets hurt on your property and files a lawsuit against you.
Rental While Home Is Rebuilt or Repaired
When severe damage occurs at your home and you’re unable to remain on the property until the home is fixed, it’s important to know that you have a place to stay. Your policy may include the price of a hotel room or house rental while your home is being rebuilt or repaired.
Three Separate Levels of Coverage Available
Actual cash value refers to the cost of your property in addition to your belongings minus their depreciation. Replacement cost covers the value of possessions without depreciation. Guaranteed (or extended) replacement cost/value is a stopgap measure where repairs above the policy limits due to inflation will be covered.
What Isn’t Covered By Most Home Policies
Just as important as knowing what your homeowner’s insurance covers, you need to know what it does NOT cover. Common items would include damage from floods and poor home maintenance. You may also be required to have a separate policy for any freestanding structures on your property such as a separated garage or outdoor shed.
Four Ways to Check What the Policy Covers
Although certain primary elements are the same across the policies of different property owners, specific details can be customized.
Here are four ways for you to learn what your policy covers:
Ask the Insurance Agency
If you’re curious about what your coverage includes or doesn’t include, you can go straight to the source by contacting your homeowner’s insurance agency. If you’re in the need of a policy, an agent will go over every detail. Feel free to take notes and definitely ask any questions you might have about the coverage limits and options.
It’s important to understand how much it would cost for your home to be rebuilt in case your insurance policy ever kicks in. A professional home replacement cost estimator or building contractor can visit your property and provide you with an appraisal. This option can be arranged by your insurance carrier.
Replacement Cost Program
You can perform a quick check yourself by providing information about your home to an online replacement cost program. This can be done to figure out the amount of your current policy replacement details or what the coverage will be once you sign up for a homeowner’s insurance policy.
Rough Math Method
Divide your current property’s insurance limit by your home’s square feet of living space. This will calculate how much money you’ll be paid out in the event of a loss. Once you have that number, you can obtain the approximate cost of rebuilding a similar home from a local contractor. Compare the two amounts and tweak your coverage as necessary.
Contact Coleman Insurance Agency to Discuss What Your Homeowner’s Insurance Covers
If you need a reputable Clearwater insurance agency, look no further than the professionals at Coleman insurance Agency. If you have more questions on what homeowner’s insurance covers or to receive a free policy quote, call (727) 441-9911.
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