Very few people actually read their homeowner insurance policy from cover to cover. Unfortunately, not knowing what you are and are not covered for can lead to big surprises if something unfortunate were to happen. Even if you were happy with your coverage when you first got it, insurance companies are notorious for making changes – and usually not in a way that benefits you.
My advice? Ask your insurance agent for a full copy of your current homeowner insurance policy. Read it and make notes in the document. Then I encourage you to make an appointment with your agent and ask questions, ask for definitions, and don’t be afraid to ask “what if” as in, “What if a rain storm knocks out the power and then a power surge shorts out all my appliances?”
Below are 11 questions I encourage you to add to your list. Many of these may be apparent once you read your policy, but it is good to talk through examples:
- In the case of a flood from a nearby river or waterway, even though my property is not in a flood zone and I am not required to carry flood insurance, am I covered?
- If my home is damaged by a landslide, am I covered? Does it matter what the landslide is caused by?
- If my roof gets a gradual leak, am I covered? What about a sudden leak? Where is the line between the two?
- If a car runs off the road and crashes into my house, does my homeowner insurance cover it or the driver’s car insurance? Could there be a problem if the driver is not insured?
- If I have a bug infestation that both needs to be eradicated and damage repaired, am I covered?
- If I have a guest who brings a dog and the dog bites someone, am I covered? What if my dog bites someone?
- Am I covered if kids are jumping on a trampoline in my backyard and one falls off, breaking their arm?
- What if a burglar breaks into my house and steals my jewelry and cash?
- Am I covered in case of a fire? Does it matter how the fire starts?
- Am I covered in case of an earthquake?
- Am I covered if an act of terrorism damages my property?
Make sure you also ask about additional coverage you might need for high-valued items that you may have added to your household since you last had your coverage reviewed. Items such as jewelry, artwork, antiques, collectibles, antique cars, and more should be thoroughly documented so you can justify the loss were one to happen. It also isn’t a bad idea to take a video of your belongings once per year.
Your future self will be very happy with the due diligence you do today if disaster strikes. Protect your property and make friends with your homeowner insurance policy!