Homeowners Insurance – Are You Covered?

Homeowners Insurance – Are You Covered?

Regular homeowners insurance will cover damage from fires, tornadoes and pieces of satellite that fall from the sky, but it won’t cover havoc wreaked by flooding, earthquakes, acts of terrorism or nuclear exposure, or war.

How do I know if I have the right coverage?

Here are the basics you should have from your homeowners insurance:

1. You want enough coverage to rebuild your home from scratch.
2. Get “replacement cost” rather than “actual cash value” for your belongings. Make an inventory of your possessions and the cost to replace them. You’ll likely need a rider to protect valuables like furs, jewelry, fine art and antiques.
3. Check your policy’s “loss of use” provisions. How long will your insurer pay your rent while your damaged home is being repaired or rebuilt?

How do I control the cost of my homeowners insurance policy?

Raise your deductible, and buy the most liability insurance you can afford to protect you from lawsuits resulting from incidents like accidental injuries and dog bites. Insure your house, but not your land.

What IS NOT covered by a standard policy?

Besides the items listed above: Damage from a sinkhole or mudslide. Damage resulting from poor maintenance or neglect. (Example: Water damage is covered if you forgot to turn off the bathtub faucet; it’s not if water is seeping through your basement walls, which is considered a maintenance issue.) Sewer backups and mold. Damage caused by pests, like insects, birds and rodents, and by pets.

Am I ready for the worst?

Californians can get earthquake coverage from a few insurance companies or from the state-run California Earthquake Authority.

How can I be better prepared?

Have a professional agent to work with you and explain your coverage.  This will give you piece of mind over the matter, which might be the biggest asset you own.

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