Save yourself time, trouble and money by reading the fine print on your homeowners insurance estimate. Know what red flags to look for before you commit to a policy that’s “too good to be true.” Be sure that all costs and coverage items are included in this upfront estimate or take steps to fully understand the limits of your coverage.
Overlooking warning signs in the fine print may lead to disappointment with your policy or unwanted expenses down the road. Identify red flags right away and consult your insurance Miller’s Insurance Client Advocate for ways to preempt long-term discontent with your homeowners insurance. Ask your Client Advocate about the following dimensions of your policy:
- True Replacement Cost?
The replacement value of your home is often a source of contention in the event of a disaster. Be sure that your policy coverage includes an accurate valuation of your home. Policyholders often mistake the dwelling amount determined by a carrier for the actual market value of their home. However, most policies cap the dwelling amount covered in the event of total loss. This cap may have a 120% limitation, which could mean that you do not have adequate protection. This is especially true when there is major devastation and supply and demand drives up the cost. Know what features contribute to the actual replacement value covered by your policy, including square footage, number of bathrooms, quality of fixtures and any number of upgrades or improvements that you’ve made.
- Coverage For Collectibles?
One important red flag to look for before committing to a policy is its collectible coverage. Collectibles include special items such as jewelry, furs, guns or silver. Such items often require separate valuation and protection depending on the nature of your homeowner’s policy. Consult your insurance client advocate to find out how your carrier handles collectibles. When loss such as theft, mysterious disappearance or disaster strikes, you don’t want to find out that your most cherished items have been excluded or limited from your homeowners insurance estimate. Read the fine print and know exactly what your basic coverage includes.
- Comprehensive Coverage?
Not all homeowners insurance estimates include comprehensive coverage for your losses. For instance, many policies just cover ‘named perils on contents,’ meaning that your home and belongings have protection against only a specific list of possible calamities. This means that if your ‘named perils’ don’t include ice damming, for instance, no losses are covered in the event of this occurrence. When speaking to your insurance Client Advocate, ask about an ‘open perils’ policy that assures coverage for most items and emergency occurrences. Even with comprehensive coverage, you should be sure to ask if additional coverage is needed for any specific disasters such as flooding or sewage backup.
To get a homeowners insurance quote and see if you may be able to save money now, call 610.269.4500 or contact a homeowners insurance Client Advocate at Miller’s Insurance and Financial Services.