Home Insurance Terminology Explained

Three Homeowner's Insurance Tips

There are few possessions that you own that are more important or valuable than your home. While a home is a major asset for anyone to own, it can be easy for individuals to fail to protect these assets due to failing to maximize the protection that they get from their insurance.

Know The Type Of Compensation Offered

One of the benefits of having adequate insurance is that you are protected in the event that your home is lost. However, you need to be aware that there are different ways that this compensation is calculated. For example, when your policy is offering market value for your home, the insurance is agreeing to pay you the market value of the property after the damage is considered. In contrast, replacement cost policies will pay the full value of rebuilding the house. While replacement cost policies will have much higher premiums, the protection of ensuring that you receive enough compensation to replace your home will be more than worth it.

Have A Hazard Assessment Performed

It can be important to customize your insurance coverage to the particular hazards that your home is most likely to experience. Unfortunately, if you have only recently moved into the area, you are unlikely to be familiar with the full range of hazards and dangers that the home may face. Therefore, it is advisable to have a hazard assessment performed as this involve an insurance specialist reviewing your property and the local history of the area to determine the types of coverage that you should carry for your real estate.

Keep Your Insurance's Emergency Phone Numbers Available

It is a reality that emergencies and other problems can occur during inconvenient times. To accommodate clients that are facing these issues, there are many insurance providers that offer after-hours support numbers that can be called. By keeping a copy of these numbers on you at all times, you will be able to quickly contact your insurance company if you are facing a dilemma and need questions about your policy answered or help with starting a claim.

Maximizing the protections that you enjoy from your homeowner's insurance policy is important for protecting your most valuable asset. In particular, being aware of the benefits of having hazard assessments done, knowing the differences between replacement cost and market value coverage, as well as the importance of keeping the emergency contact information will help you with protecting your home from financial loss due to damages.

For more information, you will want to contact a company such as Lanham Insurance Agency.