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February 24, 2023

3 Things Your Homeowners Insurance Policy Should Have

When you purchase a homeowners insurance policy, you enter into a contract with the insurer. The company agrees to provide a variety of coverages to you in exchange for your premium payments. But do you know what coverages are included in your policy? According to a Forbes Advisor survey of 2,000 homeowners, most people do not. Exterior of house in suburbs

In the era of rising premiums and inflation, you may be looking for ways to tighten your budget, including cutting out parts of your insurance to save money. Before you consider this option, take a careful look at what coverages your policy provides. You don’t want to remove essential coverages that could help you stay afloat financially should you experience a covered loss.

Here’s a list of three things that your policy should include.

#1: Adequate Policy Limits

You don’t want to wait until you have a covered loss to discover that your policy doesn’t have high enough limits to cover the costs of repairing or replacing your personal property or dwelling. Any costs that exceed your policy’s limits generally fall to you to cover, which means higher out-of-pocket costs for you. The same can be said about personal liability coverage.

Work with your trusted insurance advisor regularly to review your policy’s limits and compare them against your home’s replacement cost and the total value of your personal property. Your agent may recommend raising limits or securing additional coverage for high-value items to ensure adequate protection.

#2: An Easy-to-Understand Deductible

A deductible is the amount of money you’re responsible for when there is a home insurance property damage claim. Every situation is unique, but most homeowners’ insurance deductibles range from $500 to $2,000. Generally, if you choose a lower deductible, your out-of-pocket costs will be lower after a covered incident, but your premium will be higher. If you choose a higher deductible, your premium will be lower.

With that said, there may be different ways an insurer calculates deductibles, whether a flat fee or a percentage-based fee. Work with your agent to choose the deductible that makes the most sense for you and your budget, keeping your financial situation in mind if you experience a loss.

#3: An Experienced Agent Available to You

Your homeowners insurance policy may only seem like a good investment if you fully understand what protections it provides. That’s why it’s important to have a qualified agent committed to helping you get the coverage you need at a price you can afford. At Select Insurance, we’re here to help you make the most of your coverage and remain an informed insurance consumer.

We know budgets are tight, but we’re here to help you maximize your coverage. Give us a call today to find out how we can help.

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