Insurance policies can be hard for any consumer to fully comprehend, but first-time homebuyers are in a stickier circumstance than many after all, here you have a plan of insurance intended to protect your biggest asset, and it is not only difficult to comprehend but also has several caveats that, by not understanding them, could leave you dangerously exposed.
Homeowners Insurance Is Not Flood Insurance
The initial lesson for a first-time homebuyer is that home insurance is not the same as flood insurance. Flood insurance protects your home against the damage caused by a body of water that rises as a result of snow melt, rain, etc. Home insurance offers no protection to homeowners when this occurs. If you reside in a flood zone, then your mortgage lender will require you to have flood insurance. If you do not live in a flood zone, the coverage is voluntary.
Limits and Deductibles
Your policy likely has a deductible—and it may even have more than one. The deductible is the amount of money you must pay out of pocket for an insurable incident. Your insurance policy will offer no benefit payments unless the claim exceeds your deductible.
Limits are the maximum benefits that your insurance company will pay out. Your limits should be realistic for the value of your home and contents and potential liability claims exposure. If your limits are lower than you’d desire, you can consider an umbrella policy to include extra coverage.
Personal Property or Contents
In addition to offering monetary compensation for losses and damages to your home, home insurance also protects the value of your contents or personal property. This includes your furniture, electronics, digital software and music purchases, clothes and more. For jewelry, art or antiques, you may require additional coverage.
If someone is hurt in your home or on your property, you may be accountable for paying damages, medical expenses and lost wages, even if the injury was not a cause of your purposeful carelessness. Home insurance protects you from these liabilities so that you can actually enjoy having people over without worrying that it will later result in a huge liability.
Bed Bugs and Mold
It is a good idea to examine your home insurance policy and see what types of incidents are considered insurable and actually offer recompense. In the majority of policies, bed bugs, termites, mold and other home invaders are not considered insurable incidents, so you must pay out of pocket for their elimination.
As an Independent Agency we have access to various companies and products. Through this vast market we are able to offer you the professional protection you want and deserve. Call us today to get a free Austin home insurance quote at 512-518-6292.