Generally, what we all know about home insurance is it protects homeowners against liability claims and damage/loss caused by unexpected events and resulting financial losses.
In this blog, we have compiled a list of seven overlooked homeowners insurance facts that could leave you surprised:
- Insuring homes close to fire hydrants and fire departments cost less
If your home is near fire departments or a fire hydrant is accessible within a 1000 feet distance, you can save a lot on your monthly premiums.
- You may be denied coverage because of your pet
Most home insurance policies cover pet-related liabilities for up to $300,000. However, some providers may provide limited coverage or deny coverage if you own aggressive breeds, such as Rottweilers and pit bulls.
Pet owners with frequent dog biting claims may:
- Face exclusions for some pet-caused damages
- Be denied for policy renewal
- Have to pay higher premiums
- A home insurance claim can be reopened even after receiving compensation
You will likely file a claim if your home is damaged by a covered peril. Thereafter, your insurance provider will send an adjuster to evaluate the loss, and you will receive a compensation check post-evaluation. However, if you later find out you have missed including a loss/damage initially, you can reopen the claim to file compensation for it within one year from the date of the loss.
- You can get water damage coverage at $50
Standard home insurance doesn’t cover loss/damage resulting from drain/sewer backups. However, such water damage can result in expensive repairs, and paying them out of pocket can be difficult. This is where you need to buy water damage endorsement (that costs just $50 per year) to stay covered against such losses.
- Your insurer needs a valid reason to cancel your policy
Your provider cannot cancel your policy that has been active for over two months, except if you:
- Commit fraud
- Provide incorrect information in your insurance application
- Fail to pay premiums on time
- Give away the property or don’t maintain it, expediting wear and tear
However, after one year, your provider can deny renewing it. In such circumstances, you will be informed before a month.
- Your lender may decrease your deductibles
Deductible is the amount you need to pay out of pocket before your coverage kicks in. You can pay lower premiums by raising your deductible. However, your mortgage provider may limit your deductible to $1200 or less, just to ensure you can afford the premiums.
- Your Home Renovation Costs May Be Uncovered
Renovating your home is a good thing. Nonetheless, before you begin, discuss with your insurer whether you need to update your home insurance to have your renovation project covered from the start to finish. Otherwise, your project including its assets (construction equipment, inventory, workers, contractors, and subcontractors) may not be covered.
Get Comprehensive Home Insurance from Leland Smith
At Leland Smith Insurance, we are committed to providing an all-in-one home insurance policy that offers ultimate protection to your home and its belongings. Contact our insurance experts today to get started on your personalized home insurance coverage.