Disasters can often happen without much warning. Hurricanes, tornadoes, and floods can cause extensive damage to homes in only a short amount of time. Homeowners insurance provides a much-needed safety net, but making sure you have the right coverage isn’t always easy. Working with an insurance agency is a great way to make sure you have the right policy to protect your home from these natural disasters.
Understanding Basic Homeowners Insurance
A standard insurance policy covers many perils, but not all. Typically, a policy will protect against fire, theft, and windstorms. However, flooding and earthquakes often require separate policies. Check your policy to see what it includes. Knowing all of the details will help you avoid any costly surprises.
Coverage for Hurricanes
Hurricanes bring high winds, heavy rain, and storm surges. These dangers can cause significant damage. Most insurance policies will cover wind damage, but there may be limitations or exclusions. For example, some insurers might exclude wind damage from standard policies in hurricane-prone areas. In such cases, you might need a separate windstorm policy or endorsement.
Don’t Overlook Flood Insurance
Flooding isn’t typically covered by standard homeowners insurance. Yet, floods cause billions in damage every year. Living in a flood zone almost certainly requires a separate flood insurance policy. However, even low-risk areas can flood. Consider the cost of potential damage versus the price of a flood insurance policy. The National Flood Insurance Program (NFIP) will offer coverage, but private insurers also provide options.
Protecting Against Tornadoes
Tornadoes strike quickly and can destroy homes within minutes. Standard homeowners insurance usually covers damage caused by tornadoes. However, it’s wise to review your policy limits and deductibles. Double-check to make sure your policy aligns with the potential cost of rebuilding your home. Reinforcing your home can also reduce damage and insurance costs if you live in an area prone to tornados.
Additional Living Expenses Coverage
Natural disasters often make homes uninhabitable. Additional Living Expenses (ALE) coverage helps cover the cost of temporary housing, food, and other necessities. This coverage is part of most standard homeowners insurance policies. Be sure to confirm the limits and understand what it includes. Having adequate ALE coverage provides peace of mind during stressful times.
Evaluating Your Coverage Needs
Reviewing and updating your insurance policy each year is always recommended. Making this a yearly habit can save you a lot of stress. Here’s how to make sure your coverage meets your needs.
Assess Your Risks
Determine the natural disasters common in your area. Hurricanes, tornadoes, and floods require different types of coverage.
Update Your Policy Regularly
Home improvements, increased home values, and changing risks necessitate policy updates. Regular reviews with your insurance agent help keep your coverage current.
Consider Policy Endorsements
Endorsements or riders add specific coverage to your policy. These might include increased limits for valuable items or coverage for specific risks like sewer backups.
Understand Your Deductibles
Different types of damage may have separate deductibles. For example, windstorm deductibles might differ from general policy deductibles. Always make sure you can afford these in the event of a claim.
Tips for Saving on Homeowners Insurance
Looking at ways to save money on insurance is always a priority. Here are a few tips that can save you money and help you avoid common mistakes.
Bundle Policies
Many insurance companies will give a discount if you choose to bundle homeowners insurance with other policies, like auto or life insurance.
Improve Home Safety
Installing storm shutters, reinforcing your roof, and updating electrical systems can reduce premiums. Most insurers often provide discounts for safety improvements.
Shop Around
Rates and coverage options vary among insurers. Comparing quotes helps find the best deal. Always be sure to compare similar coverage levels and deductibles.
Increase Your Deductible
A higher deductible lowers your premium. However, you need to be able to cover the total amount of the deductible in the event of a claim.
Contact Wellcovered Insurance to Learn More About Homeowners Insurance
Wellcovered Insurance works with many of the top insurance providers to help you find the best homeowners insurance to meet your needs. We also provide other insurance options, such as auto, motorcycle, RV, business owner’s policy, and much more.
The values of our company include staying helpful, overcommunicating, finding the best action, defining any problems, and achieving the best solutions. We also strive to stay active in the community.
Our goal is to make it easy for you to choose the best insurance coverage to meet your needs. We are also happy to answer all of your questions about insurance.
Reach out to Wellcovered Insurance today to learn more about our homeowners insurance options!
