3 Things Every Homeowner Should Know About Home Insurance
As the owner of a residential property, binding home insurance is one of the most effective ways to protect your investment. This coverage will pay for unexpected damages resulting from events that lie outside of your control. When purchasing these policies, however, there are three, important things to know about your rights, your responsibilities and the accepted limitations of your plan.
1. Home Insurance Is A Binding Agreement
Many homeowners only consider home insurance as a one-sided contract, meaning that they expect this policy to pay out according to the included terms and conditions, irrespective of any actions that are taken on their ends. The reality of these agreements, however, is that they apply to both parties. There are certain forms of action and inaction on your part that can render this agreement void. This makes it vital to carefully read through the terms and conditions of your contract and to ensure that you are never in violation of any requirements that your insurer has set forth.
2. Hiring Unlicensed Contractors Can Cause Your Plan To Be Voided
One action that is virtually guaranteed to result in a loss of the protections that your home insurance provides is choosing to hire a contractor that lacks the proper licensing and Youi home insurance. This decision entails far more risk than insurance companies are willing to take on. In addition to making sure that plumbers, electricians and other residential service providers are duly licensed and insured, you should also verify that their commercial policies represent the recommended coverage limits.
3. Property Renovations Can Alter Your Home Insurance Needs
When planning any major property renovations or upgrades, be sure to consult with your insurance company. Many of these changes will affect the marketability and resale value of your home. As such, your coverage limits may need to be changed. You should also be mindful of the fact that high-risk property additions could render your home uninsurable. Talking with your insurer about your design plans is important for avoiding status changes that might affect your ability to secure quality coverage over the long-term.