After a natural disaster or another catastrophe, your homeowners insurance policy may be the only thing standing between you and financial ruin. Unfortunately, because these documents are usually very long and difficult to read, many homeowners are subject to loopholes they might not be aware of until they go to file a claim. If you have any doubts at all about what your homeowners insurance policy includes, talk with your insurance agent today.
Types of Coverage
The standard homeowners insurance policy actually contains a variety of coverage types to protect you in a variety of situations. In addition to structure insurance to protect your home itself, you likely have liability coverage to protect you from lawsuits, additional structure coverage, and personal property insurance to cover your belongings lost or damaged by a covered peril. However, you may want to talk to your insurance agent to make sure you have all of the coverage you need, especially if you have valuable property.
Replacement Value Vs. Actual Cash Value
If your home is completely destroyed, your insurance company will pay to have it rebuilt, right? Well, that depends on whether your homeowners insurance policy is based on “replacement value” or “actual cash value.” The market value takes into account depreciation, so it may not pay enough to actually replace your home or the contents if something were to happen.
While your homeowners insurance policy covers a variety of perils, many are specifically excluded. In general, the standard homeowners insurance policy won't cover damage caused by flood, earthquakes, or poor maintenance. If you live in a flood zone or an area of high seismic activity, talk to your insurance agent to ensure that you're adequately protected.
As a dedicated Allstate Agency, Maupin Insurance & Financial Services provides a comprehensive range of services to customers throughout Winchester, KY, backed by one of the industry's leading carriers. Follow them on Facebook for more insurance information, or call (859) 745-2683 to get homeowners insurance quotes today.