You will likely never have a bigger investment than your home and homeowners insurance is a significant factor in protecting that huge investment. An effective insurance policy not only protects your property, but also covers your personal possessions within your residence. Understanding the ins-and-outs of your policy means that you will not have any nasty surprises in the event that you need to file a claim. Specifically, you need to decide whether basic coverage will meet your risk assessment needs, or do you need to look at the protections afforded by a comprehensive policy.
Lenders, to protect their investment often mandate that new homebuyers maintain basic homeowners insurance coverage as a minimal protection against damage posed by fire, lightning, hail, explosions, and an assortment of other disasters as part of their financing package. Like the limited liability coverage on your vehicle however, these policies typically have a longer list of items not covered under the contract than those issues that are protected under its covenants.
For instance, rotting floors, sparking light fixtures, failing roofing systems, and malfunctioning appliances are just a few of the problems that only a comprehensive policy covers, so homeowners who believe their basic home insurance has them protected will be very disappointed.
Although comprehensive homeowners insurance carries a higher price tag, it also provides the highest level of protection against an array of disasters in addition to those listed above. From protection against liability claims in the event of a slip and fall accident to guarding against damage to freestanding structures like garages and sheds, comprehensive policies also cover:
As mentioned, this level of coverage does carry a higher price tag, so homeowners looking for peace of mind while managing their budget can choose a higher deductible to lower monthly premiums.
An affordable alternative to the comprehensive policy is the Named Perils home insurance policy. It specifically targets areas of concern that you, after assessing your property’s risk factors, are most worried about. For instance, is your home located in an area prone to severe weather events, or does the threat of a flooded basement weigh heavier on your mind? A Named Perils policy allows you to target concerns with coverage that only protects those items you specifically list or name in your policy.
The insurance experts at Mitchell & Whale can find you the coverage you want at the lowest rates possible. For a no-obligation quote, give us a call at 1-800-731-2228 or email us at firstname.lastname@example.org.