Homeowner’s insurance is not a cookie-cutter, one-size-fits-all kind of product. As homeowners, we face vastly differing insurance needs. Some of the factors we need to consider when asking how much, and what types of coverage we need include where we live, how much our house is worth, how much we owe on the house, and what level of risk we are comfortable assuming.

Here are some areas that might not be covered on your policy:

1. One issue every homeowner should look into is whether or not our policies contain a provision for flood damage. A surprising number of home insurance policies do not cover flood damage. While this is especially important in areas that are prone to hurricanes and tropical storms, flooding can and does occur in most parts of the United States from time to time. We need to be careful about skipping this important part of our homeowner’s insurance.
2. Wind damage is covered by most homeowner’s policies, but you should check with your agent to make sure. In addition, if your home does take damage from a tornado or other wind storm, wait to have it fixed until the insurance adjuster has had a chance to come out and assess the damage. While most policies will cover the damage, if there is no proof of damage, you could lose out and have to pay for the repairs out of pocket. Check with your agent for your insurer’s exact policies on this.
3. Recent natural and man-made disasters have raised some interesting questions concerning who is liable for what damages. Although the lines are not clearly drawn yet, it would appear that damages to the structure of our homes caused by flooding and any contaminants the floodwaters contain would be covered by flood insurance. Homeowner’s insurance would not necessarily cover these things. Again, we need to check with our agents to be sure.

The time to have a talk with our insurance agents is now. After a disaster strikes, it may be too late. All too often, people buy coverage for their homes based on what their lenders demand instead of what coverage they really need. Go over your coverage and make sure you are thoroughly protected for what disasters may come to your area.

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