A home that is not adequately protected with insurance can be a major liability, but this is a mistake that is often made by both new and experienced homeowners. Often, this is the result of failing to effectively understand homeowner's insurance, which can prevent a person from maximizing the protection that it offers them.
Will Homeowner's Insurance Always Pay For Hotels If You Must Vacate For Repairs?
Following major damages to the home, it is common for the occupants of the house to be forced to vacate the structure so that repairs can be completed. During this time, it may be necessary to pay for expensive hotel stays or other accommodations until the repair work has been completed. While homeowners will often assume that their policies will always provide coverage for these large expenses, there are many policies that may provide little to no accommodations coverage as part of the base insurance policy. Homeowners that are wanting to be sure to have this coverage should review any potential plans to determine whether they need to add supplementary insurance that will pay for these stays.
Why Should You Periodically Review And Update Your Homeowner's Insurance Policy?
After choosing an insurance policy, homeowners will often assume that they will not need to think about this policy again outside of making their payments. However, it is actually necessary to regularly review the insurance coverage for the house. Otherwise, it could gradually become underinsured. While the local threats to the house are unlikely to undergo a major change, the value of the house can increase substantially over time. This can leave your current policy limits inadequate, and it may expose you to the risk of not having all of the potential future damages to the home covered. Every few years or after major changes to the property, it should be appraised and evaluated to determine whether the current insurance policy is serving the needs of the homeowner.
Are There Consequences For Letting Your Homeowner's Policy Lapse?
Failing to carry homeowner's insurance can have some serious consequences. For example, you may be fully liable for any damages that occur. However, this is not the only consequence that can arise. Many mortgage agreements will require homeowners to keep the property insured or risk fines or even foreclosure. To avoid mishaps with this responsibility, many homeowners will choose to bundle their insurance payments with their mortgage payments so that they can be sure that they are meeting this requirement.
For more information, contact companies like ALTRE Insurance Agency Inc.Share