When Did You Last Check Your Home Insurance Policy? |
Posted: February 20, 2018 |
A home insurance policy is something most people never think about until they need it. Unless they file a claim, they may never read their policy or ask their agents questions about it. However, by then, it’s too late to make any changes. If you haven’t looked at your policy or thought about home insurance in Colorado Springs for a while, you need to take out some time now.
Do You Know What’s Covered?
First, you need to make sure you have the right kind of coverage if you should need it. Most likely, you have liability coverage which means the policy will pay for medical costs if someone is injured on your property.
You may have a standard policy which will cover a lot of situations where your home could be damaged. It’s important to know that not all policies are the same. One level of coverage can be quite different from the next level. You probably want the coverage that includes everything unless it’s specifically excluded. That way, you’re protected from most events that could cause damage to your home in Colorado.
You may need additional insurance if your home is located in an area prone to certain natural disasters. Those disasters are often not covered under the standard policy. For instance, you may need flood insurance if you live near a river.
Know Your Limits and Exclusions
You should also look at the limits of your coverage. This means the maximum amount the insurance carrier will pay in one event. Look at these amounts objectively to determine if you need to increase your coverage. Could you really rebuild your home for $75,000 or would it cost double the amount for a similar type of house?
Don’t forget to consider the contents coverage. This part of your policy pays for the loss of your personal belongings. It also happens to be one of the areas of the policy that is most often outdated. People acquire more things and forget to update their policy. While $25,000 might have covered their furniture and personal items a few years ago, now they need $40,000.
If you’ve added costly items such as jewelry or artwork, you may need to have them insured separately. Remember that your insurance provides coverage against theft as well as damage.
Find out if your policy would pay for your living expenses if you were displaced from your home. Some policies will pay for a hotel room, transportation and even food if you can’t stay in your home because of a covered incident. You don’t want to assume all policies have this coverage, so you should find out ahead of time.
Take out a few minutes to read through your policy. If you have questions or want to make changes, you should contact your insurance agent. Some policies require the changes to be in place at least 30 days before an event, so you don’t want to delay steps to protect your home and your family. John Smith works for John Smith Insurance Agency which provides affordable car insurance rates Colorado. Affordable rates and superior service for all home, auto and business/commercial insurance needs.
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