Understanding Home Insurance
Your home is one of your biggest assets, and home insurance is the key to protecting you if something happens to your home, property, or contents. As every home and family is different, there are a few things you should consider when purchasing home insurance.
Choosing Between All Perils Or Named Perils
A large part of your home insurance policy addresses all perils or named perils. Named perils means that you’re protected if something happens to your home that is named in your policy, for example, a fire. All perils, on the other hand, protects you from a wider range of risks. However, it’s important to note that all perils does not cover everything and will have a list of exclusions. We highly recommend reviewing the policy inclusions with an insurance expert to be sure you’re adequately protected.
Choose Extra Protection
Certain homes have different needs when it comes to insurance protection, and it’s essential that you have the right coverage for your needs. Consider the following coverage options when finalizing your home insurance policy:
- Water damage (above-ground coverage is typically not covered in a basic home insurance plan)
- Sewer backup coverage
- Oil damage
- Earthquake protection (direct physical losses or damage to your property caused by an earthquake)
- Identity theft coverage
Your insurance provider can help you decide which types of additional coverage you might require.
All home insurance policies come with a content insurance policy, which covers all of the items in your home. You can choose between two types of contents insurance: market value replacement or actual replacement cost. Actual replacement cost will have higher premiums, but if you have many items in your home that are valuable, like high-end electronics, you may wish to purchase this type of contents insurance.
In order to be properly protected, you will want to determine how much your contents are worth. Many home insurance policies come with a standard contents insurance limit, but you can increase that limit if you require a higher level of coverage.
Be sure to read the fine print of your contents insurance policy so you can be sure that you have enough coverage for your high value items.
Additional Home Insurance Considerations
Your home insurance policy may also include the following coverages:
- Personal liability: In the event that someone is injured on your property or you have unintentionally damaged their property, you’re covered for any damages incurred.
- Detached private structure: If you have an additional structure on your property that is not physically attached to your home, like a detached garage or shed, you’ll want to purchase this coverage.
- Additional living expenses coverage: If a fire or other insured peril displaces you from your home, your insurance policy will cover expenses like hotel and food costs during this time.
Being aware of, and understanding, all of your home insurance options is essential to choosing the right policy for your home. The team at Jeffery & Spence Insurance can help you sort through all of the different policy options to choose a comprehensive policy for you. Contact us today.