Did you know that the Insurance Information Institute advises homeowners to compare their homeowner’s insurance policy with two other insurers’ policies? Try saying that two times fast. This will allow you to ensure that your policy offers the right and most complete levels of coverage for your home. Your coverage helps you to protect your home against covered perils, or “risks” that include: fire, lightning, and theft. This would also allow you to check the sorts of coverage offered by each policy. A policy that costs less will likely protect you less. Standard protections under a homeowner’s policy would be: Dwelling Coverage, or that you’re covered to help pay repair or rebuild the physical structure of your home if damaged by a covered peril. Other Structures, or the coverage that helps you protect certain structures on your property that are not attached to your dwelling from covered perils. Liability Coverage, or the luxury of knowing that if any guest is injured within your home or “dwelling” and you are found “legally responsible” for their injury your policy will help cover any medical or legal bills incurred through liability coverage. Additional Living Expenses is a coverage that helps if your dwelling is damaged by fire or any other covered peril and you must live outside of your property this helps you cover additional costs associated with relocating while your home is restored to a livable state.
Do you know and understand what your deductible is? Your deductible is the amount that you’re paying out of pocket. This is a big consideration when reviewing and comparing policies. Another big consideration is your policy limits. Your policy limit is the maximum amount that your insurer will pay for a covered loss. When comparing limits ensure the coverage limits are the same and fit your needs.
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