Do you know what your homeowner’s insurance policy covers? More importantly, do you know what it doesn’t cover?
If you’re like most Americans, you have not given much thought to the details of your homeowner’s insurance policy lately. However, being unaware of your level of coverage can lead to a great deal of heartache and a large dent in your pocket.
Ask yourself the following questions to determine if you’re savvy about the details of your homeowner’s insurance policy:
Do you know whether your policy covers actual cash value or replacement cost value?
These two phrases can mean the difference between no out-of-pocket expenses should your Jacksonville home need to be repaired or replaced and falling short.
If your Jacksonville home is protected under an actual cash value, then the insurance company will determine how much your home and its contents are worth after depreciation. The clearly better option, replacement cost coverage, will cover the costs to repair or replace your home in full, without deducting anything for depreciation.
Have you updated your policy lately to reflect home improvement projects?
If you haven’t, you could lose big should you need to repair or replace your Jacksonville home. The best thing to do is to contact your homeowner’s insurance company after any project of value is undertaken. Ideally, it is best to have your homeowner’s insurance policy updated if you make any improvements over $5,000.
Have you updated your policy lately to reflect the new pool in the backyard?
Any new backyard item should be brought to the attention of your homeowner’s insurance company, as you may need to increase your liability coverage through an umbrella policy.
It is important to contact your insurance company when you add a swimming pool, hot tub or trampoline.
Have you kept accurate records for your homeowner’s insurance policy?
It is generally considered a good idea to make an inventory of all your personal property, particularly of major, household items, so that you can facilitate the process of filing a claim.
Many experts recommend that you take pictures or record video of each room and its contents, keep it in a fireproof box or safe and update it annually.
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