By law, all homeowners or anyone who has a mortgage on a home need homeowners’ insurance. Proper homeowners’ insurance can provide necessary protection for your home, reimbursing you for any damages to your home or personal possessions. But, most people don’t even look at their insurance policy after the initial purchase, and have no idea what their policy coverage entails until a freak accident happens, leaving them wondering if their insurance policy will cover them. Big mistake! It is imperative that all homeowners understand their policy and know exactly what is covered and what is not, and to periodically review their policy to assess any changes that they might need to address. BMR Insurance will help you cover the basics of homeowners’ insurance so that you will better understand your policy.
Know what your insurance policy covers: Typical homeowners’ insurance coverage includes damages caused by fire, water, storm (wind, lightning, etc), theft or vandalism. Most people mistakenly assume that homeowners’ insurance will cover damages caused by earthquakes and flooding. However, these two perils are not covered under a general homeowners’ insurance policy. If you live in an area prone to these types of natural disasters, consult your insurance provider to see if you will need to opt for an additional policy. For example, in an area at risk for flooding, homeowners would have to purchase flood insurance through the National Flood Insurance Program. Review your insurance policy with your agent and make sure you understand what your policy does and does not cover. Continue Reading →