Homeowner’s insurance can vary widely from state to state. This is because of state laws and the risks associated with certain geographical areas. When you renew your homeowner’s insurance policy, you should be careful to review those risks and consider your options.
First of all, take a good look at your homeowner’s policy, and scan for the word “perils.” A “peril,” in insurance parlance, is a cause of loss. A peril, for example, could be a fire or flood. An insurance policy that covers “all perils” is considered to be more robust than a policy that covers “named perils.”
A “named perils” policy is selective, and will only cover the damage caused by certain risks. Typical named perils are fire, lightning, windstorm, vandalism and theft. It’s important to look at your policy and see what is “named” as being covered and what is not.
Once you know what is covered under your homeowner’s insurance policy, take a look at what isn’t covered. If you live in an area prone to floods, storms or earthquakes, for example, you will likely need flood insurance, or other additional insurance coverage to protect you in case of loss. Failure to acquire such additional insurance to your policy could result in incurring considerable expense in the event of uninsured natural or manmade disasters.
This is why the cheapest homeowner’s insurance policy isn’t always the best. Before you renew your policy, read it, consider your risks, and call your insurance company to ask about additional coverage options. For expert advice on buying the right amount of homeowner’s insurance in your area, or to get a quote for homeowner’s insurance, contact AIS Insurance.
This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.