Today, we’re breaking down what homeowners insurance is and going over some ways that you can protect your most valuable assets.
What’s up, everybody? It’s your boy, Brandon Copeland, aka Professor Cope, and you are now tuned in to another episode of Cope’ing with Money.
I’ve been hearing a lot of stories recently about damage to people’s homes – flooded basements, fallen trees, all sorts of things. And every time I hear those stories, I think to myself, “Phew! Thank God I’ve got insurance.”
For most people, your home is the largest asset that you own, and thus, the largest piece of your net worth. So it makes sense to protect it by buying homeowners insurance. Although we hope to never actually need it, there’s always a chance that these incidents may occur. And if you’re new to the insurance game, then recouping your losses can be a tedious and a frustrating process, trust me.
This time on Cope’ing with Money, I thought we’d go over some ways that you can get the most out of your homeowners insurance so you can stay protected and prepared.
What Is Homeowners Insurance?
What is homeowners insurance? If you’re currently paying or financing your home, you’ll likely have homeowners insurance already, as most banks require it as a condition of your mortgage. But if you’re looking to purchase a home or just need a refresher, how does it actually work?
A typical homeowners insurance policy will cover the cost of replacement or repairs if your home is damaged in a storm or similar event. When these accidents do happen, you’ll reach out to your insurance provider and file a claim (or, in other words, a basic summary of what was actually damaged) so that they can review it and plan to cover those costs.
There are some things that an average policy won’t cover, such as damages by flooding or an earthquake. For additional coverage, you may have to purchase a separate policy. That’s why it’s important for us to take steps in advance to ensure we’re making the most of our money.
Understand Your Policy
We have to understand our policy. When signing up, your insurance agent will tell you everything your policy covers and how your deductibles actually work. You’ll also be able to see if you need to purchase more coverage for certain items.
For example, jewelry and technology are covered up to a certain limit. If you have expensive jewelry or home technology, you may have to ask your agent for additional coverage.
It’s important to never ever ever assume we have coverage in a given …….
Source: https://www.kiplinger.com/personal-finance/insurance/home-insurance/604752/homeowners-insurance