A typical homeowners policy pays for damages not only to your home’s structure but also to your belongings. Theft and vandalism are also covered. Should your home be deemed uninhabitable, home insurance will also cover temporary alternative living costs, so you won’t have to worry about hotel bills.
Keep in mind that there are certain events that your insurance won’t cover, like earthquakes, nuclear hazard, mold damage, power failure, bad repair or workmanship, flooding, etc.
Thus, make sure you’re well aware of your coverage so you’d know whether you need additional insurance and you wouldn’t have any problems when making a claim.
Replacement Coverage Versus Market Value
Homeowners should know the difference between “market value” and “replacement cost.” Market value is the amount someone would pay to buy your property in the current market condition. Meanwhile, replacement cost is the total amount of repairing or replacing your home.
Thus, it would be wise if the coverage in your policy is based on replacement cost rather than market value.
When to File a Claim
When getting a policy, ask about the limits to filing a claim and abide by them. Do not wait to file a claim especially if it would make the problem worse. That would make you ineligible for coverage. Take, for example, water damage. If you wait for almost a month before reporting a claim, chances are there are already mold formations. And as mentioned above, mold damage isn’t covered by a standard policy.
Taking Note of Everything
Homeowners should take note of everything that occurs during a loss. Aside from saving receipts, appraisals, and contracts, document calls by taking note of who you spoke to and when. Make sure to secure it in place. Do everything you can to mitigate the loss or damage and document it.
Good Home Maintenance
Insurance carriers don’t like paying large claims, so they value prevention and early detection. Prepare your home for upcoming weather changes and have your property checked for damages routinely. Finding faults in your home early will save you from dealing with a bigger problem in the future.
Your home should be protected by a reputable insurance agency right here in Miami. American Trust Insurance represents a handful of trustworthy insurance companies that will provide you with the right home insurance coverage you need. Talk to one of our agents now by calling (305) 270-2220 or visit us today. Get a free insurance quote by clicking here.