What does a Homeowners Insurance Policy cover?
Coverage varies but it starts with insuring the home itself, many items in the liability and homeowners insurance. A general homeowners insurance policy doesn’t cover everything. Add on policies expand coverage to include such things as identity fraud and water backups. Yes, water back up is not part of a basic homeowners insurance policy.
Expanding a Homeowners Insurance Policy
High-value items such as jewelry, guns and music items need to be included in a separate schedule. It is common for insurance companies to ask for the items to be appraised and include an item description. We can help you get to know which items need to be insured separately and what will be required.
Setting the Homeowners Insurance Coverage
Make sure to get adequate coverage. After catastrophe strikes, you will want to have the right amount of coverage. Rough estimates start at about $125/sq. ft. That gives you a ballpark figure but have your agent use their cost estimator tools to get a more accurate figure.
Selecting Homeowner Insurance Deductibles
Different claims require different deductibles. When covering wind damage, deductibles often are required to be 1-2% of the value of the home. Other claims, listed as “all other perils”, usually require smaller deductibles than the wind coverage does. Ask your agent specifically about “All Other Perils”.