How to Get the Most Out of Your Homeowners Insurance

Although no one likes to think about the possibility of damage to their home, particularly catastrophic damage, it happens with alarming frequency. From fires to floods and everything in between, your home is at risk. Therefore, you want to do whatever you can to keep it as safe as possible.

Understand How Much Damages Could Cost

A lot of times, people don’t have enough coverage for their homes. They may think that they have a policy that will cover their fire damage restoration or other issues, but that might not be the case. If you don’t understand just how much it costs to replace the home, items, etc., you could find that it’s far more than you had anticipated.

You should make it a point to get a customized estimate of the cost of the home’s replacement, not repairs, every couple of years. You will then want to make sure that you buy full replacement-cost coverage, which is extended coverage. It can add up to 30% to the replacement value limit, which can help to ensure you have enough money to cover the costs of repairing and replacing the home in the event of a disaster.

Make Sure All Risks Are Covered

You need to understand what is and is not covered in your homeowner’s insurance. Even though it might seem like flooding should be included, it isn’t. Standard homeowner’s insurance policies will not cover water damage restoration from flooding. Therefore, you will want to have separate flood insurance, which can help in these cases.

However, you also have to consider just how much that flood insurance can cover. Will it truly be enough to provide all of the money needed for water damage restoration in the event of a disaster? You may find that you should buy some added coverage. The National Flood Insurance Program can provide quality flood insurance. Keep in mind, though, that it does come at a premium.

Understand How the Insurance Companies Think

When the insurance companies are trying to sell you policies, they appear concerned about your home and say they want to ensure you have all of the coverage you need to keep you safe. While this is partially true, they are mostly concerned about getting your business.

When you find your home needing fire damage restoration or water damage restoration, though, you can bet that many of those insurance companies are going to try to find ways to pay less. At the end of the day, they are a business.
This is why it is so important that you take out a quality policy and that you understand everything it contains. You need to know exactly what is covered for your home in Cincinnati. Paying a little bit more for your coverage now is fine, as long as the company will provide you with good service when you need it.

Choosing the Right Company

Don’t just choose the first insurance company you find, and don’t choose the cheapest or even the most expensive. You need to think about what you need to have covered with your home. If you live in an area that floods every few years, then you need flood insurance. Even if the area doesn’t flood, it could be a good idea to have this coverage.
Take the time to read and understand the different policies and types of coverage offered by the companies you are considering.

Check their reputation, as well. Looking up reviews of the company from others who have used them in the past is a good way to see how they treat customers. If you see a lot of customers saying that the policies don’t provide proper coverage, or that the company tries not to pay, it will be best to avoid them.

Doing a little legwork now to find the best company for homeowner’s insurance—and choosing extra coverage when needed—can help to keep your home safe.