A home is one of the biggest and most complex purchases you will ever make. If you have purchased a home in Vero Beach, you have likely acquired a loan to help pay it off. As part of the terms of that loan, you are required to purchase homeowners insurance to protect your (and the bank’s) asset. Whether you are currently shopping for homeowners insurance or have already selected a policy, you should understand these three things about the policy you select.
What Does your Policy Cover?
A comprehensive homeowners policy can protect your financial future. While it provides the means to take on repairs or rebuild your home after a disaster, many policies go above and beyond providing for the immediate expenses to repair or rebuild your home after a disaster.
- If your home must undergo extensive repairs, your homeowners policy may provide for additional living expenses, which cover the costs of lodging and meals in the event that you must leave your home so that it can be rebuilt or repaired.
- Homeowners insurance also provides liability coverage to protect you from a lawsuit in case someone gets hurt on your property or the person’s property gets damaged or lost while on your property.
Additionally, your homeowners insurance may protect items outside of your home. If a thief steals a laptop from your car that sits in your driveway, you’ll likely file a claim under your homeowners policy rather than your auto insurance policy. In this scenario, your auto insurance policy would be responsible covering the costs of fixing the damage done to your vehicle, but not the costs of replacing what was stolen from it.
What Does your Policy Exclude?
Homeowners insurance policies protect insureds from many things that one would not immediately assume they cover (like the vehicle theft example above); however, they often exclude events that a recent homeowner might find surprising. Standard homeowners insurance policies typically do not protect homes against:
- Sinkholes and other earth movements, like earthquakes and landslides
- Power failures
- Government actions
- Poor workmanship
- Defective maintenance
As you can see, standard policies don’t cover all types of water damage. While your policy may cover a burst pipe or rain, it likely excludes sewer damage or ground flooding. Vero Beach property owners would be wise to purchase flood insurance in addition to homeowners insurance.
How to Save on Insurance
A mortgage is likely one of your biggest expenses each month, if not the biggest expense. Did you know that you may be able to lower your costs by securing your home? Something as simple as installing new smoke detectors throughout your home could save you on your insurance premiums. Additionally, adding a professional security system to deter burglars can reduce the risk that your home will be targeted for burglary, which will lead to a lower monthly payment.
When disaster strikes, you should be able to rely upon your insurance provider to help you get back on your feet. Unfortunately, large insurance companies don’t always make that an easy process. Attorney William Terry has over 25 years of experience practicing litigation law in Florida. He represents people who own property in Vero Beach against insurance companies to ensure they receive the compensation they deserve. Call (772) 217-6600 or email Bill Terry to receive a free consultation.