Yes, a homeowners’ insurance policy is really very important. But equally important are certain things that will help you get the best policy for you and the peace of mind that you've done all you should do right. Let's take a look at them. . .
1. Do you know the best home owners insurance policy for you? There are eight different levels of home insurance coverage in the US. You can buy a policy that gives you a high level of coverage for your home and household items including other valuables. But at the same time, you can get the bare-bones minimum.
2. Even after choosing the best policy of you, you could have valuables that cannot be covered by any standard policy. Do you have a diamond ring or very costly painting? Do you need a floater or rider to get additional coverage? Make sure you know exactly what you need to do to ensure you have sufficient coverage.
3. Do you understand the exclusions section of your home insurance policy? This is not a place to make any assumptions. It could be really painful to pay your premiums faithfully only to realize you didn't have coverage for certain perils that you thought you were covered from.
4. Do you know that the standard policy does not cover flooding? Yes, don't misunderstand coverage for water damage (actually for things like leaking pipes and broken faucets) with flood coverage. If you think your policy already covers flood damage, confirm from your agent. It won't hurt too if you get a confirmation in writing from your insurance provider.
5. Do you have a solid plan for your deductibles? Yes, you'll have to take this into serious consideration especially if you chose very high deductibles. Ensure you have made provision for them.
6. Did you take time to check your insurance provider's claims history? What do resources like BBB say about them? How do they treat claims?
7. Does your homeowners’ insurance policy have a guaranteed replacement cost? Take note that “replacement cost" does NOT mean “guaranteed replacement cost". Make sure you find out for sure what you'll get in the event of a loss.
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Chimezirim Odimba writes on insurance.