Now that you've purchased your new home, you need to familiarize yourself with the insurance policy you purchased. On the surface, it might look like one policy that protects your home and everything in it. However, your policy is more complex than that. Your insurance policy is actually comprised of several "mini policies." Each of those "mini policies" are designed to provide protection for a specific thing. Each section has specific limits and benefits. The last thing you want to do is place your policy in a drawer and forget about it. You need to read it and understand it. Here are three sections you need to understand about your home insurance policy.
Repair or Replacement
If you look at your home insurance policy, you'll notice that the first section deals with the repair or replacement of your home. This is the section that will determine how well-protected you'll be if your home is damaged or destroyed. In most cases, the coverage available to rebuild your home will be higher than what you paid for your home. That's because the coverage limit is determined by how much it would cost to rebuild your home in the current market.
If your home is damaged or destroyed, chances are good that you're going to suffer a loss of personal property as well. That's where the personal property section of your policy comes in. Your personal property coverage will replace the items you have in your home. To make sure that you receive full compensation in the event of a loss, you need to document your personal property.
A good way to do that is to take videos of your home. Go room to room and videotape all of your possessions. This will allow you to document everything you own. It's also a good idea to keep receipts for any items that might be considered "big ticket" items, such as televisions or computers. This will allow you to document how much you spent on those items.
Additional Living Expenses
If you suffer a loss that makes it impossible for you to live in your home while it's being repaired, you'll need to rely on the additional living expenses portion of your policy. This section will pay for the expenses associated with being displaced from your home. For instance, the additional living expenses coverage will pay for temporary housing for you and your family, as well as any expenses associated with furnishing your temporary housing.
Now that you own a home, don't wait until it's too late to learn about your insurance coverage. By reading your policy, and understanding the information contained in it, you'll be prepared should a disaster ever strike. If you have questions about your policy, be sure to speak to your agent.
For more information, contact Clifford P Beauvais Insurance Agency or a similar organization.