4 Factors To Consider With Your Home Insurance

4 Factors To Consider With Your Home Insurance

Home insurance is always a good idea to get, even if it’s not legally required to buy a home. You’ll still need it if you plan to apply for a mortgage since banks want to see that you’re reducing their risk. But in general, home insurance is good protection for you, and what is likely to be one of your most significant investments.

However, certain conditions will play a big role in how your home insurance works and what kind of coverage you can expect. Here are a few others you should keep in mind.

Building Age

How old a house is, plays a significant role in determining the amounts your insurance may ultimately cover. The chief purpose of home insurance is to help with rebuilding. However, if the materials used in an older building are no longer as common, or more expensive to source, this impacts the cost of rebuilding your home and thus has an effect on insurance coverage. Buildings that are “difficult” in terms of restoration, or more “at-risk” face unique insurance considerations.

Exclusions

Don’t make the mistake of believing that home insurance will cover everything that happens to a home. While there are some events guaranteed to be covered by insurance, such as a fire, or even a severe storm, it’s not safe to assume every catastrophe is covered by insurance.

Depending on the state situation for the threat of flooding, for example, flooding is often not covered by home insurance. Some states, however, may require additional flood insurance be purchased for homes, but it is not usually an automatic inclusion in most home insurance policies.

Additional Living Expenses

While home insurance may be there to help you deal with reconstructing a home, what will you live in in the meantime? A home severely damaged by flood or fire will require you to have temporary accommodations until life returns to normal. Still, unless you stay with family, this is often not free. Additional living expenses is a way for you to finance temporary living arrangements without having to worry about these financial concerns in the immediate aftermath of a disaster that displaces you from home.

This way, whether you need medium-term rental options at an apartment or just a short stay at a hotel, you don’t have to worry about where the money is going to come from.

Liability Coverage

Home insurance typically covers damage to the home, but you may also be concerned about injury to other people. Liability coverage explicitly addresses this need. For example, swimming pools are one of the leading causes of severe accidents at home, with, tragically, children drowning being a major example.

If a child gets into an accident with a swimming pool on private property, home insurance won’t cover the expenses surrounding that injury. Liability insurance, however, can step in, even if it turns into an issue of negligence.

Home insurance has a lot of different aspects to it that can be confusing, but we can help. Contact Panorama Insurance Agency Inc, and we’ll answer all of your questions and find the right home insurance for you.

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