Getting homeowner’s insurance is usually a requirement for those who obtain a mortgage. Whether you have paid for your house outright for are just purchasing a new home and require homeowner’s insurance, trying to figure out whether you have enough coverage can be complicated.
The first thing you want to do is determine the assessed value of your house and make sure that your homeowner’s insurance is going to cover the entire amount that you owe to the bank. If you don’t owe the full amount of the home’s value, have equity in your home, or it is completely paid off, make sure that your insurance coverage is enough to replace the house entirely in the event that is destroyed by fire.
The next thing you want to do is to determine whether your homeowner’s insurance will cover certain mishaps and incidences, such as pipes breaking in the wall and flooding certain rooms or the basement.
Also check to see what type of coverage your homeowner’s insurance provides for liability. Any time that somebody comes onto your property, whether they are invited or not, you are liable for any injuries that they may incur. It could be a friend who is visiting you and takes a bad step down your front walkway. It could be a family member who goes to sit down at the dining room table and the chair breaks underneath them.
Any time that somebody is injured on your property, you could be held liable and you want to make sure that your homeowner’s insurance will cover a certain amount of the liability.
Finally, check to see what other coverage options you may not have known about when you first signed up for homeowner’s insurance. Too often, especially when people are purchasing a new home, they will have a tendency to cut corners, skip certain coverage options, all in the name of saving a little money at that time.
Sit down with your insurance broker and go over your entire homeowner’s insurance policy to see if there are gaps that should be filled or whether you are paying for coverage that you simply don’t need, depending on the type of house, condo, townhome, or apartment you own.
If you don’t have an insurance broker who can explain your policy to you so that you understand it, contact James Campbell Insurance today. We will gladly help you determine whether you have enough homeowner’s insurance coverage home.