Homeowners insurance can help to protect the value of your home against catastrophic damage or losses. However, there are many misconceptions out there about homeowners insurance. If you are looking to buy a new homeowners insurance policy or make changes to an existing policy, here are a few of the things that you may not realize but should. This will help you find the right policy and the right coverages for your home.
Flooding and Mold May Not Be Covered
When you go to purchase homeowners insurance, you likely expect that your home will be protected against many things, including flood, fire, earthquake, and mold. But what you may not realize is that in many cases, things like flooding and mold are not covered by your home insurance. These types of claims require you to purchase a supplemental insurance policy that specifically covers that event or problem. Always be sure to carefully read your policy to find out what is covered. If something is not listed, it likely is not covered, and a supplemental policy may be needed to cover your home.
Most Home Insurance Policies Have Different Deductible Levels
Another thing that you may not realize when you are purchasing a homeowners insurance policy is that different events have different deductible levels. When you buy a car insurance policy, you pay one flat deductible regardless of whether you hit someone or hail damages your car. But that is not always the case with homeowners insurance policies. You may pay one deductible amount for catastrophic events, one amount for theft and a different amount when people are injured on your property and file a claim against your home insurance. Carefully read the policy to find out if your policy has different deductible levels, so you are not caught off guard.
Homeowners Insurance Doesn't Cover Renters
The last thing that you may not realize when you buy a homeowners insurance policy is that your policy does not cover renters. This includes both short-term renters and long-term renters. If you are renting out your home, you either need a commercial renters insurance policy, or your renters need a renters insurance policy. Your agent can help you determine which you need based on how long the renters are staying.
If you are looking to purchase a new homeowners insurance policy, be sure that you talk to your insurance agent about purchasing supplemental flood and mold insurance policies, understand how your deductible levels work and purchase the right type of policy if you are planning on renting your home out.