[Posted August 19th 2014 by:Joel Pond]
Many mortgage companies will tell you to get home insurance estimates but few will inform you of what you should be searching for when on the hunt for coverage. Just what is entailed in an estimate? What type of insurance should you be looking for? All of these questions and more can be answered.
Why is it so important to get homeowners insurance?
Contrary to some beliefs, homeowners insurance is not a waste of money. Hundreds of property owners have lost thousands of dollars because they failed to insure before tragedy struck. Even more homeowners are at risk of losing everything because they are not properly insured.
What does insurance do?
Homeowners insurance protects you in the instance of calamity. House fires and some natural disasters are typically covered under plans that allow owners to be reimbursed for damages and relocate if the destruction is too great to rebuild.
What doesn’t it do?
Whereas most home insurance estimates include quotes for unexpected fires and other disasters, few include coverage for floods. Since water damage is considered a special kind of disaster, you will need to request an endorsement in addition to standard coverage when you speak with a specialized agent. A standard homeowners insurance policy also does not protect animals or personal items such as CDs and DVDs. The average protection make recompense for damaged real estate only, and pays homeowners lump sums based on the property’s value.
Can I obtain coverage for antique items?
It is possible to have sentimental valuables covered under your insurance policy if you are willing to pay more money. In order to obtain such protection, you must ask your agent to add the precious items on to your policy. You will more than likely need to have valuables appraised before attaching them to your plan.
Is it possible to be reimbursed for the food in my refrigerator if it spoils due to a power outage?
Yes and no. Whereas individuals with premium policies can be reimbursed for spoiled goods, those who opt for discount homeowners insurance are not typically paid for marred food due to loss of power. You must inquire about special coverage for groceries with your agent if you want to be completely covered for lost goods.
Does homeowners insurance cover damage to my car if it is parked in the driveway when tragedy strikes?
Unfortunately, car and homeowners insurances are not one and the same. You must contact your car insurance provider if your automobile is destroyed in a natural disaster. Even if your car is burned along with your house in a fire, a representative from your car insurance provider would still need to handle your automobile claim.
Can water damage due to a busted pipe be covered under homeowners insurance?
Yes. Once you choose to add the endorsement for water damage to your policy, every instance of tragedy is covered. Whether a leaking pipe forces you to discard valuables, or a hurricane leads to the need for your home to be gutted and rebuilt, home insurance estimates can cover all unexpected emergencies.