Having a homeowner’s policy will essentially give you peace of mind. Any homeowner ought to read their insurance policy. However, if you have not read your policy then you may end up shocked when you are left financially responsible and devastated because a sudden loss that occurred on your property is not covered.
A standard homeowner’s policy covers losses towards water, fire, storm damage, and other named perils. It will pay for repairs, lack of use, liability claims, and medical payments. The losses can be covered by either replacement cost value (RCV) or actual cash value (ACV) depending on the policy. Having ACV on the policy will repair or replace the damages to your property and personal belongings minus depreciation of the item. Having RCV on the policy will repair or replace the damages to your property and personal belongings at these today’s marketplace price.
Upon reviewing your policy, you will observe a section for what is excluded from coverage in your policy. A standard homeowner’s policy will exclude, damage from war, vandalism, nuclear accident, wear and tear, earthquake, flood, frozen pipes, vandalism, pets, and so forth.
For these exclusions you may get an endorsement or policy rider to have coverage for them. Of course, any additional endorsements will come with an additional premium. There are also separate policies one can purchase like for earthquake coverage or for flood coverage.
Here are some examples of endorsements:
- Earthquake: This endorsement will cover earthquake damages for the home and additional structures, consisting of garages or fences. Most policies encompasses costs to bring your home up to current building codes which is very beneficial.
- Theft: This endorsement provides against theft of your personal property. Coverage for theft is written differently for each insurance company. For jewelry as an instance, the majority of insurers would require an appraisal for coverage whilst others have a limited amount no matter the appraised coverage.
- Inflation Guard: An inflation guard endorsement will help you maintain with yearly raising inflation because in case you insure your property for the price you paid for it, inflation increases might not can help you have enough insurance to replace your entire home if there is a complete loss in the future. The insurance amount for inflation guard is routinely increased every 12 months to maintain with the inflation.
- Sewer Backup: A fairly cheap endorsement to cover a problem of sewer backup that can cause major water damage and a dangerous health problem.
Choosing any of these or other endorsements will cost you more, but it may be worth it in the long run. Either way you’ll never know what coverage you have and don’t have until you read your policy.
At Florida Claims Resources, we pride ourselves in helping our clients understand their policies. We offer free home inspections to assess your damages. Contact us today at 954-345-7676 to schedule your free consultation today!
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