Insurance policies can be difficult for any consumer to fully understand, but first-time homebuyers are in a stickier situation than most after all, here you have a plan of insurance designed to protect your largest asset, and it is not only difficult to understand but also has many caveats that, by not understanding them, could leave you dangerously exposed.
Home Insurance Is Not Flood Insurance
The first lesson for a first-time homebuyer is that Baton Rouge home insurance is not the same thing as flood insurance. Flood insurance protects your home against the damage caused by a body of water that rises as a result of snow melt, rain, etc. Home insurance offers no protection to homeowners when this happens. If you live in a flood zone, then your mortgage lender will require you to have flood insurance. If you do not live in a flood zone, the coverage is optional.
Limits and Deductibles
Your policy likely has a deductible—and it may even have more than one. The deductible is the amount of money you must pay out of pocket for an insurable incident. Your insurance policy will offer no benefit payments unless the claim exceeds your deductible.
Limits are the maximum benefits that your insurance company will pay out. Your limits should be reasonable for the value of your home and contents and possible liability claims exposure. If your limits are lower than you’d like, you can consider an umbrella policy to add additional coverage.
Personal Property or Contents
In addition to offering financial reimbursement for losses and damages to your home, home insurance also protects the value of your contents or personal property. This includes your furniture, electronics, intangible software and music purchases, clothes and more. For jewelry, art or antiques, you may need additional coverage.
If someone is injured in your home or on your property, you may be responsible for paying damages, medical expenses and lost income, even if the injury was not a result of your purposeful negligence. Home insurance protects you from these liabilities so that you can actually enjoy having people over without worrying that it will later result in a huge liability.
Bed Bugs and Mold
It is a good idea to read your home insurance policy and see what types of incidents are considered insurable and actually offer recompense. In most policies, bed bugs, termites, mold and other home invaders are not considered insurable incidents, so you must pay out of pocket for their removal.
As an Independent Agency we have access to many companies and products. Through this vast market we are able to offer you the professional protection you need and deserve. Call us today to get a free Baton Rouge home insurance quote at (225) 490-5678.