How to Avoid Underinsuring Your Home

Your home is one of your greatest assets and a significant long-term investment. Protecting your home and its contents with adequate homeowners insurance is vital. Did you know that nearly 2 out of every 3 homes in America are underinsured—which means that the home is protected to an extent by a homeowners policy, but that policy doesn't have sufficient limits or coverage features to cover the total expense of a potential claim.

Don't let your home become another statistic and suffer the devastating consequences of inadequate coverage in the event of a loss. Homeowner's insurance policies consist of several different types of coverage. While trying to find the best home insurance for you here are some key coverage elements to look out for:

• Dwelling coverage is the portion of your homeowner's insurance policy that can offer compensation for the cost of repairing or rebuilding the physical structure of your home if it gets damaged or destroyed by a covered event (e.g., a fire, a windstorm, or vandalism).

• Other structures coverage is the portion of your homeowner's insurance policy that can help cover the cost of repairing or rebuilding any detached structures on your property (e.g., a shed or fence) if they get damaged or destroyed by a covered event.

• Personal property coverage is the portion of your homeowner's insurance policy that can reimburse the cost of personal belongings stolen or damaged items inside your home, such as furniture or electronics.

• Loss of use coverage is the portion of your homeowner's insurance policy that can help pay for temporary living expenses if you have to move out of your home while it's being rebuilt or repaired due to a covered event.

• Liability coverage is the portion of your homeowner's insurance policy that can offer compensation for the expenses that may result if you are found liable for injuring another person or damaging their property. These expenses include medical payments, pain and suffering settlements, lost wages, legal costs, and death benefits.

Lastly, keep in mind that some events—including overland floods and earthquakes—are not always considered covered events on your homeowner's insurance policy. Therefore, if you live in an area with an elevated risk of these weather-related catastrophes, you will need additional coverage.

There are various factors to consider to guarantee your home is properly insured. Carriage Trade Insurance Agency, Inc. is here to walk you through your homeowner's policy and help you secure ultimate insurance protection for your personalized risks—ensuring complete coverage in case of a claim.

We offer comprehensive home insurance solutions to help you protect your family and your home all while helping you save on insurance. Contact Carriage Trade Insurance today to learn more about our homeowners and renters insurance options for peace of mind. Click here to get your free homeowner’s insurance quote today!