Some homeowners believe that their home is fully insured. Only after disaster strikes do they realize that their insurance coverage was not adequate.
In order to prevent this, homeowners can carefully review their policy to ensure that they are actually protected. They should also create an inventory of their home and its contents to better understand the risks. Many homeowners do not distinguish between the risks that are covered and those that are not. In many cases, insurance coverage is available after the fact, but it will only cover a portion of the losses.
The best way to protect your home is to ensure that you have the right coverage in place and that you understand what is and is not covered. Homeowners should also be aware of their personal risk factors that may not be covered by their policy. These include natural disasters as well as crime. Homeowners should review their personal insurance with an independent insurance agent.
Understanding home insurance is vital to keeping one’s home and possessions safe. Knowing and understanding what types of risks are covered and what are not is a great way to keep one’s home insured and protected.
How to Prevent Your Home from Being Underinsured
The best way to protect against a home loss is to ensure that you are adequately insured in the first place. This can mean the difference between protecting one’s personal possessions and being unable to recover after a loss. Here are 5 ways on how to make sure that your home is fully insured.
1. Purchase Beyond the Minimum Amount
If the homeowner is purchasing a new policy, it is always best to purchase the maximum amount of insurance possible. If the homeowner has an existing policy, the homeowner should contact the insurance agent to review their policy. In many cases, it is possible to increase the amount of coverage, although this may involve an additional premium.
2. Add Flood Insurance
Flood insurance is often overlooked by homeowners, but it is an important component to any policy. It is important to understand that flood insurance is often not covered by a standard policy, as it is considered a separate risk. Homeowners should always contact their insurance agent before purchasing a policy to ensure that they are covered.
3. Add Coverage for Certain Types of Theft
The standard homeowner’s policy does not include theft as a form of coverage. In order to protect against this risk, the homeowner should consider purchasing a rider. This will ensure that the homeowner is protected in the event that a certain type of theft is attempted.
4. Update an Inventory
As a homeowner makes upgrades or changes to their home, they should always keep an inventory of the property. This will allow anyone who is making an insurance claim to be able to have an accurate list of all the items that were there before the loss.
5. Speak With Your Insurance Agent
If you have any doubts about the amount of insurance coverage you have, you should speak with your insurance agent. As the insurance agent explains all of the nuances of the policy, they will be able to help you evaluate the coverage that you have and if you are adequately protected.
There are many reasons that a homeowner may feel that they are underinsured. In many cases, the homeowner may simply not be aware of the underlying issues. If you meet this description, it is best to seek out a professional who can explain the situation to you.
5280 Insurance offers the best home insurance in Colorado that will protect your home, possessions and insure you against any possibility. Let us custom tailor a policy to meet your unique needs. Schedule an appointment with us today!