What You Should Always Know About Your Home Insurance Policy

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What You Should Always Know About Your Home Insurance Policy

Here’s what you should always know about your home insurance.  

Many homeowners know that they need home insurance coverage as required by their mortgage provider. For this reason, they find suitable coverage and then promptly forget about their policy, hoping they never have to use it. Not only is it good to review your coverage often to make sure it suits your needs, but it’s wise to know these three factors of your insurance at all times.

  • Premium

Your premium is the rate you pay every year or month in exchange for coverage. It’s important to keep up with these costs as if you do not, you could lose coverage. Your premium is determined from a variety of factors, such as your home’s age, location, condition, value, risk factors, your personal details, and more. Ask your agent if you are entitled to discounts on your premium by bundling coverage or installing home security features.

  • Deductible

Your deductible is what you must pay out of pocket in the event of a claim before the insurance policy to kick in. It’s essential that you determine the premium as an affordable out of pocket cost so that you can afford to file a claim if needed. Keep in mind that although this may be a pre-determined dollar amount, for items such as jewelry, it may be a percentage of the damage.

  • Exclusions

Far too many homeowners purchase home insurance thinking that it covers every known disaster and event. Standard home insurance policies exclude damage from floods and earthquakes. If your home and property are susceptible to these disasters, consider adding a separate rider for complete coverage. What’s more, if you have items of high-value, you may need to secure additional coverage to protect their complete value.

At Dougherty Insurance, we represent multiple carriers and are able to explore all of the best homeowners insurance options. We want to make sure that you have the coverage you need – it’s our job to help you! Contact us today for unparalleled insurance in Illinois, Wisconsin, and Indiana.

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