Know What’s in Your Home Insurance Policy
Many homeowners know that they need home insurance. They select their policy at random and then hope that they never have to use it. Unfortunately, this can be a costly mistake to make. If you are unaware of what is covered in your policy – unsure if it’s even the right policy – you could be doing your home and finances a disservice. Take a look at the three details you should always know about your home insurance on Long Island, NY.
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Limits
Your home insurance doesn’t pay an infinite amount of money in the event of a loss. There are limits to the policy you purchase. When you decide on a policy, you select the amount of coverage you need to replace your home and possessions. There are two main limits for the dwelling and personal property, but there are also sub-limits for issues such as jewelry and electronics. Be sure to revise this with your insurer so that you understand where your policy’s limits lie.
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Deductibles
Almost every policy is subject to a deductible. This is the amount of money you will need to pay first in the event of a claim before the insurance policy kicks into effect. Many homeowners tend to focus on the main deductible in the event of a claim, although there are sometimes larger deductibles for certain types of losses. For example, deductibles for earthquake, flood, or windstorm coverage is often a percentage of the claim amount, rather than a specific dollar amount.
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Covered Perils
A common mistake that homeowners make is to assume that every disaster is included in the coverage. Most standard home insurance policies cover a wide range of disasters including fire, theft, explosion, hail, lightning, and vandalism. However, flood and earthquake damages are typically excluded. Separate policies must be obtained if you desire coverage for these events.
Do you need help reading or securing the right homeowners’ insurance for your needs? Contact the team at Premier Risk, LLC to get started! We serve Long Island and neighboring cities in New York.
