3 Key Details to Always Know About Your Home Insurance Policy polices folder in a drawer
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3 Key Details to Always Know About Your Home Insurance Policy

  • May 9, 2019

Understand the Details of Your Home Insurance 

Many homeowners purchase homeowners insurance because they know they need to and then promptly forget about it, in the hope that they never have to use it. However, this can be a costly mistake to make. Not only is it good to review coverage often to ensure it still meets your needs, but it’s important to understand key details within your policy. Knowing these details can help you to understand your coverage.

Limits

Your home insurance doesn’t pay an infinite amount of money in the event of a loss. When you purchase a policy, you select the amount of coverage you need to replace your home and possessions. Although you may be aware of the two main limits for the dwelling and personal property, you may not realize that there are sub-limits set for other items. For instance, the sub-limit on personal property for a $500,000 policy would typically be $250,000, or 50 percent of dwelling coverage.

Deductible

This refers to the amount you must pay out of pocket before your insurance policy kicks in. Generally, the higher the deductible, the lower the annual premium. Before you raise your deductible to the highest amount in order to save money on your premiums, ensure that your deductible is at an affordable cost. Homeowners make the mistake of raising their deductible only to find that that they struggle to pay it in the event of a claim. Your deductible is typically a pre-determined dollar amount, although, for jewelry coverage, it may be a percentage of the damage caused.

Perils Covered

While a standard home insurance policy gives you many protections, such as coverage for the structure of your home, personal belongings, loss of us, and liability, it doesn’t cover everything. This means that your home insurance policy may not cover home wear and tear. Additionally, standard coverage often excludes damages from floods and earthquakes. For such coverage, you will need to secure a rider. 

Take the time to review your home insurance coverage to be sure you have optimum protection. To find the right coverage for your needs, work with one of our friendly and experienced agents at Falsken & Associates Insurance Agency serving Thousand Oaks, Westlake Village, and neighboring cities in California.