How Familiar Are You With Your Home Insurance Coverage?

August 28th, 2014  |  Insurance

It’s safe to say that most homeowners know the basics about their homeowner’s insurance policy. They know how much they are paying, and have a general idea about their insurance policy. 

When was the last time that you took a look at your home insurance policy? When was the last time you reviewed your policy and got a quote? Do you know what is and what is not covered? Do you have an appropriate level of home insurance coverage considering where you live and the type of home you own?

These are all questions that many homeowners need to have answers for – but often do not. Most, however, are familiar with the core facts about home insurance coverage. They are outlined here:

Core Facts About Home Insurance

• Your home is most likely the biggest financial investment you will make in your life
• Every property is vulnerable to threats such as theft, fire, and water damage
• Most homeowners are not in a position to pay to replace everything in their home if it was damaged
• Home insurance protects you financially from having to pay for expensive repairs and to replace lost belongings

These facts speak to the important role that home insurance plays to protect you as a homeowner. However, for some reason, many homeowners seem to be in the dark about the details of their home insurance coverage. Many people are more concerned about the monthly payment rather than the important details contained within their policy. 

5 Reasons Why You Need To Know Your Coverage

Wondering why knowing your home insurance coverage is so important? Here are 5 reasons:

1. It is vital that you never find yourself in a situation where you assume you have coverage when you in fact are not covered
2. Knowing your coverage will help you better assess your needs when getting a home insurance quote
3. When things change and you need to update your policy, you will have a solid understanding of what needs to be adjusted in your policy
4. It will make the claim process go smoother, should you need to file an insurance claim with your broker
5. No two home insurance policies are the same. Your policy is based on your specific details

Where do you fit on the spectrum of home insurance knowledge? Do you know your home insurance policy from front to back? Is it time for you to dust it off for an evening of reading? Do you fall somewhere in the middle?