Leigh Insurance Agency of St Augustine Blog
With the number of damages brought by disasters in the past years, it is better to be safe than sorry. In this situation, applying for a homeowners’ insurance policy is your best bet. However, some plans can have confusing parts that lead to complications when you try to make a claim. To help you out, here are a few common misconceptions to look out for before settling on a policy.
All Kinds of Damages are Covered
If you carefully look at the listed coverage in your policy, you might find that there are only certain situations covered by your insurance. You can consider yourself lucky if your policy is one that encompasses all perils. However, you should still check the coverage since there are times when policies exclude specific disasters.
Some of these exclusions include war, nuclear hazards, power failure, flood, and earthquake. You can purchase separate policies for these situations. You can also talk to your provider if you can put them on your plan as additional coverage. You should also be aware of specific conditions in the coverage. For example, you can only claim for damages brought by the hurricane if your house has been damaged by the wind, not rain and flood.
Payout Will Depend on the House’s Market Value
A typical homeowners’ insurance will not cover the land where your house is built, which is a significant factor when it comes to computing your house’s market value. Another reason why this is wrong is that the amount that your provider considers is the replacement cost you chose when you bought the insurance.
With replacement cost coverage, you can be reimbursed with whatever the cost of replacing your property is. With actual cash value coverage, you can only get paid an amount equal to the cost of replacement minus the depreciation.
Your Personal Property is Covered
This may not be true all the time. The first reason is that most policies will only cover a property under 16 particular situations. Another is that most personal belongings such as jewelry and firearms can only be included in specific limits. Even if you can cover them in your policy, you should still have proof that you own these items.
Loopholes in homeowners’ policies can hinder you from receiving a payout when you need it. Make sure that you have everything you need to be covered by talking to an agent today.
At Leigh Insurance Agency, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (904) 826-0799. Get your free quote today by CLICKING HERE.