Homeownerâ€™s insurance can vary widely from state to state. This is because of state laws and theÂ risks associated with certain geographical areas. When you renew your homeownerâ€™s insurance policy, you should be careful to review those risks and consider your options.
First of all, take a good look at your homeownerâ€™s policy, and scan for the word â€œperils.â€ A â€œperil,â€ in insurance parlance, is a cause of loss. A peril, for example, could be a fire or flood. An insurance policy that covers â€œall perilsâ€ is considered to be more robust than a policy that covers â€œnamed perils.â€
A â€œnamed perilsâ€ policy is selective, and will only cover the damage caused by certain risks. Typical named perils are fire, lightning, windstorm, vandalism and theft. Itâ€™s important to look at your policy and see what is â€œnamedâ€ as being covered and what is not.
Once you know whatÂ isÂ covered under your homeownerâ€™s insurance policy, take a look at what isnâ€™t covered. If you live in an area prone toÂ floods, storms orÂ earthquakes, for example, you will likely needÂ 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 homeownerâ€™s insurance policy isnâ€™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 homeownerâ€™s insurance in your area, or to get aÂ quote for homeownerâ€™s insurance,Â 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.