Your Homeowner's Insurance Policy - Dissected: Part 1 of 5
Who has time to labor through deciphering an insurance policy when the house needs cleaning, the fence needs mending, Fido needs a feeding and the kids need to be driven to soccer practice?
Let's face it. At the end of the day, the only thing a person wants to read is the newspaper or a good book. Reading one's insurance policy is surely the last thing on the list of "hot reads."
While keeping your homeowner's insurance updated is a dismal task, it is of utmost importance. As discussed in a previous article, not only is it important to purchase homeowner's insurance, it is just as important to know what that policy covers.
Homeowner's insurance policies contain several different coverage areas. This article, and some of the next few that follow, will help you make sense of the different sections within your homeowner's insurance policy.
RESIDENTIAL COVERAGE
The most obvious coverage is protection against damage to or destruction of your residential structure. In other words, if your home is destroyed by a tornado, fire, or whatever your policy covers, the insurance company completely replaces or repairs your home.
In this section of coverage, the most important reason to keep your homeowner's insurance policy updated is because, in the event of disaster, the insurance company will only reimburse you for what your home is insured for.
For example, you purchased your home and homeowner's insurance five years ago. It is very likely the value of your home has increased since the purchase date. If you purchased the home insurance policy five years ago and have not updated the policy to the home's current cost to rebuild, the insurance company will only reimburse you for the price you paid five years ago. So, if you purchased the home for $300,000 and the value has increased to $500,000, you're losing $200,000 - quite a large sum.
In the end, it is essential to keep your homeowner's insurance policy updated because you want to be sure your home is insured for 100 percent of the replacement cost. (Some policies automatically update to your home's current value. Does yours?) While it is easy to let that dust settle over your policy from year to year, keep in mind that putting it aside could cost you much more in the end. Your homeowner's insurance policy may make heavy reading, but it will be even more burdensome should it be out-of-date.
Related Tags: insurance, home owners insurance
To read more articles about health, auto, life and homeowner's insurance, check out http://www.hometownquotes.com/insurance-articles.html
Krista is the Director of Public Relations for HometownQuotes.com. She received her Bachelor of Science from Belmont University in Nashville, TN. She is a member of PRSA and PRSA Young Professionals.
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- Choosing the Best Building Content House Insurance
Choosing the best insurance can be a task that can make one's mind work hard. However, should the be - How To Choose The Right Home Insurance Company For You
When it comes to choosing a home, most people deliberate for weeks. You view the house, ask question - How To Buy Home Insurance
Before you can settle on that house you want to buy, you will have to provide proof of home insuranc - How to Choose a Top Home Insurance Company Online
Choosing a home insurance company online certainly isn't unheard of; after all, we do many things on - Find a Great Home Insurance Website
In this day and age, it's wise to choose a home insurance company that's easily accessible online. W - Florida Home Owner Insurance - Tips On How To Pick The Best Policy
While every state has different homeowner insurance rates, Florida home owner insurance rates are am - Protecting Your Assets with Homeowner's Insurance
Everyone who owns a home knows they need some form of homeowners insurance, but past that point ther - How to Find Affordable Homeowner's Insurance in Colorado
In addition to buying new draperies, carpeting and accent pieces, when you move into a new home, you - Earthquake Insurance Basics
It is most important to know that a basic homeowners policy does not cover damage caused by earth mo - Hurricane Season Is Coming! Understand How To Handle Home Owners Claim Damages
PRE-DISASTER PLANNINGNatural disaster planning is one of the most important duties a homeowner can p
Most viewed articles in this category:
- Handle Risks of Holiday Homes with Second Home Insurance
Nowadays, many people in UK own a holiday or a second home outside UK-be it Spain, France, Italy etc - How To Pick The Best Home Insurance Company
Home insurance is a must, but there are a lot of options to choose from, just like in auto insurance - Property Insurance
Once you decide to invest in a home, there are many aspects to consider. I will congratulate you on - South Florida Home Owner Insurance Quote
Hurricanes in south Florida can end lives, and survivors usually find their homes severely damaged, - Home Insurance Online: Searching And Buying Is Made Easy Now
With the coming up of the internet nowadays, almost everything can be bought online. Books, clothes, - Getting a Home Owner Insurance Quote in Oklahoma
Home owner insurance isn't a legal requirement in Oklahoma, but if you purchased your home with the - Get a Cheap Home Owner Insurance Quote
Home owner insurance is not always required. If you live in a home you own out right, with no lende - Animal Damage To Your Home - Are You Covered?
I have seen hundreds of thousands of dollars in damage to people's homes. This damage was not caused - How To Dramatically Reduce Your Homeowners Insurance Bills!
We all know that home insurance is an absolute must, when you are a homeowner. However, many people - Homeowners Insurance Information
As a Houston Farmers Insurance agent I get to frequently compare homeowner's insurance policies from