Homeowner’s Insurance 101 For many homeowners, the only thing they know about their insurance is that it’s required by their mortgage company. In fact, they feel SO strongly about it that they will place their own insurance on the property if the homeowner doesn’t provide it. Hopefully, that will be all you need to know about your homeowner’s insurance, but life doesn’t always go our way! After you read this blog, you will know more about homeowner’s insurance than most of your friends. You can use this knowledge to impress them at the next dinner party! A homeowner’s insurance policy is a very comprehensive policy. It is important to note, however, that not all insurance policies are created equal. It is important to know that in addition to a homeowner’s policy, a significant number of policies that are written are dwelling policies. While they both cover many things in the same way, the dwelling policy is not as comprehensive as a homeowner’s policy. Many homeowners have found, to their shock, that some items just are not covered by a dwelling policy. The biggest coverage missing from a dwelling policy is theft coverage. If your home is broken into, and you have items stolen from your home, if you have a dwelling policy, you are most likely out of luck. There may be some coverage if they damaged your home while breaking in, but for the most part, theft is NOT covered by a dwelling policy. Oftentimes, people choose a dwelling policy because it is cheaper than a homeowner’s policy. When they are buying their home, they want to keep costs down, and they don’t always consider price versus value. For homeowners, it is usually best to spend the extra bit of money for a homeowner’s policy and get theft coverage as well as numerous other additional coverages that are not available on a dwelling policy. There are two other types of coverage that are not included on a homeowner’s policy of which everyone should be aware. The first, and especially noteworthy in California, is earthquake coverage. Coverage for earthquake is available through most California insurance agents. Take a look at my other blog about earthquake insurance for more valuable information (link). The second type of loss that is not covered by a homeowner’s policy is flood. This has become especially noteworthy since El Nino is currently pounding California. Many experts are recommending that homeowners consider flood insurance as part of their insurance portfolio. If you have questions or comments about this article, please feel free to do so below! DISCLAIMER: This article is intended to provide general information only. It is important you meet with an insurance agent to discuss your personal situation.
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AuthorDave Owens, Owner/Agent. I have proudly served in the Insurance Industry for over 20 years. Archives
October 2019
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