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6 Things Every Homeowner Should Know About Home Insurance

Feb 16, 2015

1. What does home insurance cover?

Most home insurance policies cover damage to your home and personal possessions in the event of a storm, fire, theft, or vandalism. Home insurance also provides liability coverage if someone is injured on your property and chooses to file a lawsuit. Your home insurance policy may also cover the cost of a hotel if you are temporarily displaced from your home.

2. What isn’t covered by home insurance?

Standard home insurance policies have exclusions, which typically include earthquakes, power failure, nuclear hazard, war, government action, faulty zoning, bad repairs, and defective maintenance. Damage caused by flooding is usually only covered under certain conditions. Typically, water damage from a burst pipe in the ceiling is covered, but water from a backed up sewer usually isn’t covered. Talk to your insurance agent about your unique policy and consider purchasing supplemental coverage, if needed.

3. What about jewelry?

Your jewelry is typically covered in your homeowner’s policy, but only up to a certain amount. When you purchase homeowner’s insurance, be sure to ask your agent about the limits. If you have jewelry that exceeds the standard policy, you may need to purchase supplemental insurance so you are completely covered in the event that your jewelry is lost or stolen.

4. How do I find the best policy?

Shop around. Do your research. Take your time in investigating different insurance agencies and policies before you purchase coverage on your home. Read customer reviews and recommendations and ask your friends and family about their policies. Finding a cheap rate can be great, but sometimes great customer service is better. In home emergencies that require filing a claim, you’ll already be stressed out – a great agent can make all the difference in these situations.

5. How can I lower my insurance rate?

The smallest things can make the biggest difference in your insurance rates. Make sure all your smoke detectors and burglar alarms are working properly. Preventative action can reduce your premiums, as agents typically price your policy based on how much risk is involved. Reducing your liability can help you qualify for lower rates. You can also save some money by bundling your car insurance or life insurance policies with your homeowners insurance.

6. How soon should I file a claim?

If something happens, make sure you report any insurance claims as quickly as possible. Most insurance companies have a time limit for reporting claims. If you wait too long, you may surrender your right to benefits, especially if the situation worsens over time, like with water damage. Be sure to keep a record of all losses and damage, and everything you’ve done to mitigate that damage. Document all phone calls, contracts, appraisals, and receipts.

For more information on home insurance and local agencies in Hilton Head, contact the knowledgeable real estate agents at Hilton Head Island Real Estate Brokers. We can point you in the right direction. Call 843-785-8006 or fill out our contact form to get the help you need.