If you own a home or are thinking about buying one, home insurance is probably something you’ve thought about at least a little bit. But if you’re like most people, the particulars of various insurance policies tend to bleed together into an incomprehensible mishmash of policies and coverages. Maybe you looked at the pricetag and little else. And while many home insurance policies are similar, there are notable differences from agreement to agreement, some of which may make a huge difference in your life if the worst happens. Here are some things to consider before you sign up, or if you’re thinking about switching insurers.
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- Pay Attention to What is Covered (Natural Disasters). Houses take a beating in the best of circumstances. If you’ve been a renter, you probably haven’t had to worry about this too much, since your landlord was the one covering these bills. But now that you’re the one writing the checks, the reality of household damage hits a lot closer to…well…home. When it comes to damage resulting from natural causes, most home insurance policies cover wind, fire, hail, and lightning damage. With the exception of fire, these causes do not typically result in anything more than a limited damage to a home’s exterior. In some cases, hurricanes, tornadoes, and household conflagrations can level a house, and have your insurer covering a big claim. But don’t simply assume that whatever fate may befall your home will be covered by your insurance. Some events, like floods and earthquakes, are often absent from your insurance’s coverage list. So if you live in a floodplain or along a fault line, it will be in your best interest to either invest in expensive insurance that covers these eventualities, or just buy cheap and hope for the best. Don’t take it for granted that the other standard coverages are available in every home insurance package, either. Like those living in flood-prone areas, coverage for wind damage may be more costly if you live in an area with a history of tornadoes or other gusty acts of God. Think carefully about what natural disasters are likely to occur in your geographic area, and make sure they’re covered in your home insurance policy.
- Pay Attention to What Else is Covered (Human Mischief). I’m talking here about burglary and vandalism. Having someone break into your home is somewhat unlikely, but you want to be prepared well in advance. Don’t stop at picking an insurance provider who covers home invasion. Make sure you know exactly how much coverage you have. If you have valuables in your home, gear, heirlooms, or anything else that would result in a great net loss of wealth, consider purchasing additional coverage to make sure you have what you need. Vandalism is a bit easier to quantify, and is typically treated like the damage incurred from natural disasters, but it still pays to know exactly how much coverage you have in the event that your home is vandalised.
When you read the fine print to find this information, you’ll start to see the difference between prospective home insurance policies. Take some time to review prospective policies for a future home, or to replace an unsatisfactory policy that you have now.
Callie Marie says
December 7, 2015 at 5:21 pmMy husband and I have been renting while we save up to buy a house of our own. We have been looking around lately, but first I’m trying to learn how to get a good insurance policy. I didn’t realize that natural disasters like floods and earthquakes are not always covered. Because we live near a fault line, I should make sure I have earthquake coverage.
Annie Marks says
December 8, 2015 at 9:16 amHaving home insurance I would agree is a great way to make sure that your home is covered in case of an emergency! I would agree that knowing what type of coverage you have on your home is important! Reading the fine print is a great way to ensure that your really understand your policy! Thank you for sharing how home insurance can be a benefit in a case of an emergency or disaster!
Daniela Adams says
December 14, 2015 at 1:57 pmYou make a great point about making sure your house is protected from natural disasters. You are right, when you own your own house, the responsibility to keep it safe is greater. We’ve just moved into our first house, and we are looking for an insurance plan. Thanks for your helpful tips, I will definitely keep them in mind.
June Robinson says
December 22, 2015 at 2:48 pmMy husband and I are ready to buy our first home, but we understand that it would be the wise thing to make sure we can afford homeowners insurance as well. I like that you point out the importance of finding out what is covered and not. I imagine there are many things that can go wrong in a home that aren’t covered under basic insurance, so it would be important to find out what you can do about those kinds of things. Thanks for sharing!
Patti Osterberg says
December 30, 2015 at 12:34 pmI agree that “houses take a beating in the best of circumstances,” and it is always important to be prepared for natural disasters or other damage. I’m shopping for homeowners’ insurance for my new house, so I’ll be sure to ask about floods, earthquakes, fires, and storms. I’m surprised that a lot of policies don’t cover floods. Do you know why this is?
Kyle Ross says
January 7, 2016 at 4:10 pmThese are some great tips, and I appreciate your advice to make sure natural disasters that are common in your area are covered in your insurance. My wife and I just moved into our first home, and it’s in an area that has had a lot of floods in the past. We’ll definitely make sure that flood damage is covered in our home insurance plan. Thanks for the great post!
A.B. Emon says
January 29, 2016 at 2:53 amI read this sight and see every content and I think this is very important part of every human life. Because most of the people face some problem in his life like money or other things. So, when this situation is face a person then he fill very helpless. In this problem insurance can help a man and different insurance can a person will secured. It’s very essential matter. One insurance can help a man who face some difficult situation. So,I hope every person fill it deeply and insure his/her life with insurance like home.
Hazel Adams says
March 1, 2016 at 7:40 amI agree a lot with paying attention to what is covered in the policy, I also agree that it is definitely important to be able to pay attention to what is covered in natural disasters. I think in order to make this most effective you might want to research which natural disasters are most common in your area.
Tara Allen says
March 22, 2016 at 3:08 pmInsurance seems very valuable to have if anything were to happen to your home. Understanding your coverage in an emergency situation, I would agree is a good idea. That is interesting that some home owners insurance covers home mischief.
John Carston says
May 10, 2016 at 7:04 amThis is great advice for someone looking into home insurance policies. I’ll need to follow this advice and pay attention to what is covered in the policy and see if other things are covered like burglary. Thanks for the helpful home insurance post.
Lillian Schaeffer says
October 17, 2016 at 11:28 amThis is some great information, and I appreciate your suggestion to pay attention to what is covered by home insurance. My husband and I are going to be moving into our first house, and it’s located in an area prone to flooding. We want to make sure we’re fully covered, so we’ll make sure our policy has flood coverage, or we’ll buy extra insurance. Thanks for the great post!