Do You Have the Basics?
If you have ever sat down and tried to read your homeowners insurance policy you probably understood very little of what you read.
As with many types of contracts the terminology used is very advanced and full of legal jargon.
While most insurance agents will run through what each item means, it is often done so quickly that you barely understand what you signed by the time you are out the door.
It is important to at least understand the most basic elements of your policy so that you are clear on what is and what is not covered by your current plan.
Unfortunately, many people do not have the proper coverage they need.
Hurricane Katrina was a media spectacle that brought improper coverage to the public eye.
Many homeowners that had been paying their premiums on time found out that they lacked the proper coverage for hurricanes, and were left without any means to rebuild.
Understanding your policy and making any necessary adjustments is imperative to protect your assets in the unlikely event of a disaster.
Typically a homeowner's insurance policy has several types of coverage listed.
The most common are Coverage A, B, C, D and E.
Each of these parts of your insurance cover different aspects of liability, and the amounts the insurance company pay out are determined by these sections of your policy.
Coverage A is also known as dwelling coverage.
In short, this type of coverage only protects the physical structure of the primary home.
In the event that damages, repairs or loss result from theft, vandalism, snow, fire, lighting, ice, accidental flooding from your homes plumbing.
Coverage B is alike in regards to what types of accidents it covers, but it protects any external structures on your property such as detached garages, storage buildings, and workshops.
Coverage C is often referred to as Personal Property Coverage.
This part of your policy covers your valuables inside of your home from accidents listed in coverage A and B.
Because it can be very hard to prove what valuables you had in your home in the event of a fire or other devastating accident, you should update your insurance regularly to cover any new additions.
Examples of this would be installing a new home entertainment system, new computer purchases, appliances, and other items of high value you may purchase.
Another aspect of your policy covers your expenses for the time you cannot physically reside in your home after an accident.
Coverage D will help with expenses such as hotel rentals, temporary home rentals, and the day to day expenses that you may incur while displaced from your home.
Coverage E may be one of the least used aspects of your coverage, but it protects you in the event a person gets injured on your property.
$300,000 is the minimum recommended amount of coverage, as this amount will cover most medical and legal costs in the unlikely event someone should sue.
As with many types of contracts the terminology used is very advanced and full of legal jargon.
While most insurance agents will run through what each item means, it is often done so quickly that you barely understand what you signed by the time you are out the door.
It is important to at least understand the most basic elements of your policy so that you are clear on what is and what is not covered by your current plan.
Unfortunately, many people do not have the proper coverage they need.
Hurricane Katrina was a media spectacle that brought improper coverage to the public eye.
Many homeowners that had been paying their premiums on time found out that they lacked the proper coverage for hurricanes, and were left without any means to rebuild.
Understanding your policy and making any necessary adjustments is imperative to protect your assets in the unlikely event of a disaster.
Typically a homeowner's insurance policy has several types of coverage listed.
The most common are Coverage A, B, C, D and E.
Each of these parts of your insurance cover different aspects of liability, and the amounts the insurance company pay out are determined by these sections of your policy.
Coverage A is also known as dwelling coverage.
In short, this type of coverage only protects the physical structure of the primary home.
In the event that damages, repairs or loss result from theft, vandalism, snow, fire, lighting, ice, accidental flooding from your homes plumbing.
Coverage B is alike in regards to what types of accidents it covers, but it protects any external structures on your property such as detached garages, storage buildings, and workshops.
Coverage C is often referred to as Personal Property Coverage.
This part of your policy covers your valuables inside of your home from accidents listed in coverage A and B.
Because it can be very hard to prove what valuables you had in your home in the event of a fire or other devastating accident, you should update your insurance regularly to cover any new additions.
Examples of this would be installing a new home entertainment system, new computer purchases, appliances, and other items of high value you may purchase.
Another aspect of your policy covers your expenses for the time you cannot physically reside in your home after an accident.
Coverage D will help with expenses such as hotel rentals, temporary home rentals, and the day to day expenses that you may incur while displaced from your home.
Coverage E may be one of the least used aspects of your coverage, but it protects you in the event a person gets injured on your property.
$300,000 is the minimum recommended amount of coverage, as this amount will cover most medical and legal costs in the unlikely event someone should sue.