10 Things You Should Understand About Home Insurance
Homeowners insurance covers your home, other structures, personal property, loss of use, personal liability, and medical expenses. But what does this mean? To understand your home insurance policy, it is essential that you know the following terms and coverage:
1. Home value
Home equity is an estimate of what it would cost to rebuild or replace your home in the event of a total loss. Home equity is not an estimate of how much your home can sell for in today’s market.
2. Other structures
Other structures are covers for structures on your property that are not attached to your home, such as a guesthouse, detached garage, shed, or fence.
3. Personal property
Personal property covers its contents within the home. Includes furniture, appliances, clothing, and other items.
4. Living Expenses Living
expenses are coverage to stay in a place other than your home in case your home suffers damage.
5. Personal responsibility
Personal liability covers claims against property damage or bodily injury.
6. Medical expenses
Medical expenses cover medical care and payments for injuries or damages to third parties while they are on your property.
7. Additional coverage
Additional coverages are options that you can select in a policy to protect against different types of risks or events. Such as equipment failure, sink / water discharge, foundation cover, sink collapse, personal injury, identity fraud expenses, upgraded personal property (jewelry, watches, furs, and other valuables) and increased cost replacement. Please note that additional coverages vary and may differ from one insurance company to another.
8. Deductibles
Deductibles are specific amounts of money or percentages that the insured must pay before an insurance company will pay for a claim. Homeowners policies have two or three deductibles that are for wind and hail storms, name storms, and any other loss. Please note that additional coverages vary and may differ from one insurance company to another. Increasing the deductible will lower your premium but will also increase the amount of the covered loss that you will be responsible for paying in the event of a claim.
9. Risks and characteristics of the construction of your home
The risks and characteristics of your home construction are details about your home that insurance companies consider before issuing an insurance policy or when calculating your annual premium. The type of construction, improvements, repairs, age of the roof, history of losses, the square footage of your property’s living area, and the number of floors are some of the characteristics that insurance companies review. The presence of a fire alarm, burglar alarm, or sprinkler system in the home are features that may qualify for discounts on your annual premium.
10. Flood insurance is NOT included in your home insurance policy.
Flood insurance is not included in your home insurance. Flood insurance policies are sold separately and can be purchased through an independent insurance agency. Weather events, damage, and other situations can be financially and emotionally devastating. Our team suggests you evaluate your risks and consider purchasing additional coverage for your home. We also suggest that you consider purchasing a flood insurance policy that protects your home.
When you buy home insurance, you’re protecting much more than just four walls and a roof. You’re safeguarding your way of life and the future of your family.
Home or (as you may know it) homeowners insurance provides a variety of coverage that protect the structure, its contents, personal liability, and a variety of other options.
Insurance Company in Brisbane, understands the complexities of this important coverage, and we provide a wide range of homeowners insurance options to choose from.
