Owning a home is a great benefit as well as responsibility. Having the right insurance coverage for your home is one of the most important decisions that you can make in order to protect your valued asset. Too many homeowners have learned too late that they didn’t have the appropriate coverage and lost their investment.
Take charge of your insurance needs and be sure to know all of the different types of coverage as well as options that are available in your region.
Common Misconceptions about Home Insurance Coverage
There are a number of things that it doesn’t cover and it’s important to understand these in order to avoid costly mistakes or oversights. If you carry homeowner’s insurance, it’s not a blanket policy to protect you against anything that occurs within your home.
- Business interests – If you operate a business from the comfort of your home, your business ventures and interests are not covered by your insurance policy. That could include a home office or any damage caused to your home by the business itself.
- Vehicles stored or used at the home – If you keep a boat or recreational vehicle at your residence, these are not covered by your homeowner’s policy. Each vehicle that you own will need to have separate insurance. It doesn’t matter if the vehicle is stored in a garage, shed, or under a tarp in the backyard; the policy does not cover them.
- Professional services that you provide – Related to number 1, if you provide professional services from your home, such as tax accounting, massage therapy, or a beauty regimen, for example, none of these services are covered. This means if a client enters your home for a business purpose, and something happens and injures them while on your property, your policy will not cover you.
Your home is your most valued asset, so it’s vital to have the right insurance coverage. Many homeowners don’t realize that insurance covers a variety of incidents including fire, theft, and specific natural disasters such as lightning strikes, wind damage, or hail.
Homeowner’s insurance can also cover damage from frozen and ruptured plumbing pipes within the home if conditions regarding occupancy are met.
One of the most common misconceptions about home insurance coverage is flood insurance. In certain regions of the country, you cannot purchase flood insurance, while others will allow the homeowner the option of purchasing flood insurance.
Be sure that you know the flood risks in your neighborhood, especially if you are looking to purchase a new home in the near future. Flood insurance is not typically included in a homeowners policy and must be purchased separately.
Some Options to Lower Your Home Insurance Rates
If you have advanced security, fire sprinklers, or have not filed a claim in the past, you could be eligible for discounts on your home insurance coverage.
When you need the right homeowner’s insurance, it’s important to speak to a knowledgeable insurance professional who can walk you through each aspect of the policy. Knowing what is covered and what is not covered can save you a great deal of frustration and anxiety in the future.
Tenants insurance is designed for tenants of residential premises such as dwellings and apartments, who are not eligible for a homeowners policy as they do not own the building in which they reside. Coverage is similar to a homeowners policy except coverage relating to the structure is not included.