For many homeowners, their property is their most valuable asset. With April showers fast approaching, preparing for potential storm damage is essential. That’s why it’s important to understand what your homeowners’ insurance policy entails, as well as how to check in on it, so you can help protect your home and belongings in some of the worst-case scenarios.
What is homeowners’ insurance?
Homeowners’ insurance is a subsect of property insurance that protects you, the homeowner, from qualifying losses or damages to your residence, furnishings, or other related assets (Investopedia, 2021). In other words, Homeowners’ insurance policies generally cover damage to your home or personal belongings, as well as certain injuries that may occur within your home or on your property.
Like other forms of insurance, homeowners have a deductible, or out-of-pocket cost, associated with any of these incidents (Investopedia, 2021). Once the deductible is met, the insurance company covers further related costs.
Homeowners’ insurance and storm damage
In the springtime, qualifying damages are often due to storms. Before the rain comes in, you’ll need to review your liability limit, or the amount of coverage in case of an incident (Investopedia, 2020).
You should also refamiliarize yourself with what is covered in your policy. Some natural disasters, like floods, may be excluded. So, if your home is on a riverbank or beach and potentially at higher risk this storm season, you may want to investigate additional coverage.
Whatever you decide, ensure you have a thorough understanding of exactly what is and isn’t covered, so you’ll be prepared in case of an emergency. After all, the only thing worse than having your home damaged in a severe weather event is realizing that certain costs won’t be covered.
How do I check my homeowners’ insurance policy?
Each company and policy is different, so you may need to contact your insurance provider for assistance. You can also work with an independent insurance broker to further explore your options.
Once you’ve successfully located your policy, keep a copy in a fire-proof box or an off-site thumb drive. That way, you can always refer back to it after an emergency or whenever you have questions.
Final thoughts
Regularly reviewing and understanding your homeowners’ insurance policy can save you time, money, and headache down the road. Your home is likely your biggest investment, so you’ll want to familiarize yourself with the measures put in place to protect it before the rain starts pouring. Then, you can rest easy knowing that your home is in good hands.
Published on March 28, 2022
