If you recently purchased your first home, you may likely be wondering what additional expenses you may have to pay. You may be debating the value of the expense of homeowners’ insurance. This type of insurance is, in fact, an excellent investment that can yield great returns. However, not every type of incident, to include natural or man-made, is always covered under homeowners’ insurance.
Common Homeowners’ Insurance Coverage
Most standard homeowners’ insurance policies will typically delineate what you are protected against and what is not covered. Certain policies will clearly state that you are protected against incidents called “open perils.” In these cases, you are essentially covered against everything except the events specifically listed in that section of the policy.
On the other hand, “personal property coverage” indicates that your belongings are not shielded from all of the named perils that your policy lists. Here are some examples of frequently occurring perils that many standard homeowners’ insurance policies cover in the event that your personal items (laptops and other electronics, kitchen appliances, clothing, furniture, rugs, etc.) become damaged or destroyed in any way (your property can be repaired or replaced) or for any reason (fires, hail, wind, theft, etc.). Certain high-value personal items, such as jewelry, are not always protected under personal property coverage, so be sure to check your specific insurance plan’s coverage details.
According to the Insurance Information Institute, homeowner claims related to wind and hail have been some of the most frequent in recent years. The institute found that between 2014 and 2018, wind and hail represented the largest share of claims: 2.3% of homes suffered a loss related to these types of weather events. Water damage and freezing (2.05% of homes) was the second-most-common type of claim in this study.
The likelihood and frequency with which these perils occur may vary, in part, depending on the area in which you live. If you ever have any doubts as to whether a certain event qualifies as a “peril,” you should contact your insurer immediately for more clear information on the extent of your coverage.
Incidents Not Covered By Homeowners’ Insurance
Certain types of incidents will generally not be covered under the average homeowners’ insurance policy. Here are some examples of such incidents:
- Power failure
- Nuclear hazard
- Landslides and mudslides
- Mischievous behavior
- Governmental action
- Birds, insects or rodents
- Destruction caused by pets
There are also certain incidents such as water backups, earthquakes, and ordinance of law (when the local government forces you to reconstruct your property so that it adheres to regulations) that can be added back to your policy for an additional premium. If anything is ever unclear, be sure to ask your home insurance provider for specific details about exactly what is and isn’t covered in your policy and why.
Should I Acquire A Policy?
This is a very legitimate question that many homeowners often ask themselves, in part because they feel like they can barely afford their mortgage, especially during difficult economic periods. However, you will find in time that homeowners’ insurance will protect you against a wide variety of events and is therefore worth the cost. Options for plans will often vary, so be sure to ask what choices are available to you.
Factors That Affect Homeowners’ Insurance Rates
The price of a homeowners’ insurance policy can vary depending on the insurer you choose and the area you live in. However, there are also other factors that can affect home insurance costs:
- Age of your property
- Construction type (frame, brick, etc.)
- Distance from a firehouse/fire hydrant
- Updates to roof, plumbing, electrical, etc.
- Installment of security system or other similar features (e.g. smoke detectors)
The last two factors on this list are things that you, as a homeowner, have a high degree of control over. Therefore, be sure to take the corresponding actions that will help you save on insurance payments.
Contact The Homeowners’ Insurance Professionals
Reach out to the experts at Southern State Insurance in Alpharetta, Georgia to learn more about the benefits of homeowners’ insurance. Since our founding in 1992, we have grown to become one of the largest, privately-held independent insurance agencies in the Southeast. We have access to nearly every major insurance carrier and are determined to help our clients obtain the best value they can with their chosen protection plan.
At SSI, we place a major emphasis on value, diversity in options and strong, long-lasting relationships. With us, a standard homeowners’ insurance policy will undoubtedly cover the structure of your home, liability protection, your personal belongings and basic living expenses in the event of a disaster. Call Southern State Insurance today at 888-971-6304 or contact us online for more information about homeowners’ insurance policies.