Most homeowners only read their policy after something goes wrong. A short review now can show you where your coverage stops, while you still have time to do something about it.
Flood damage
This is the gap that surprises people most. FEMA says homeowners and renters insurance do not typically cover flood damage. Flood coverage is usually a separate policy.
Timing matters too. Most National Flood Insurance Program policies have a 30-day waiting period before they take effect, so you cannot wait for a storm forecast. There are exceptions, such as flood insurance bought along with a mortgage loan. Ask us whether one applies to you.
Wear, tear and maintenance
Home insurance is built for sudden events, not slow ones. A burst pipe may be covered, while a roof that wore out over twenty years usually is not. Keeping up with maintenance protects your home and helps avoid a dispute at claim time.
Valuable items
Standard policies often set lower limits for items like jewelry, art and collectibles. If you own something valuable, ask about adding coverage for that specific item.
Replacement cost versus actual cash value
Two policies can look alike and pay very differently. Replacement cost coverage pays to repair or replace with something similar. Actual cash value subtracts for age and wear, so an older roof or sofa may pay far less than a new one costs.
What to review each year
- Would your dwelling limit cover rebuilding at today’s prices?
- Have you renovated or added onto your home?
- Do you have a list of your belongings?
- Have you thought about flood coverage for your property?
Every policy is different, so the wording of your own policy decides what is covered. If you would like a second set of eyes on yours, call our office.
