A home is one of the most important possessions that you can own, but this major investment can suffer damage from an almost endless range of threats. Fortunately, insurance is widely available for those wanting to protect this investment, but some people do not have a well-developed understanding of insurance policies. Due to this, they may need a couple of routine questions addressed when they are shopping for a policy.
Will homeowner's insurance always cover plumbing-related water damage?
When a plumbing system encounters major problems, it can result in substantial water damage to your home. Unfortunately, some people make the mistake of assuming their homeowner's policy covers these sorts of losses. While it is true that many policies will cover these damages, some will not, and these require you to purchase an addendum for your policy to be protected from this source of damage.
Even if your policy covers this type of damage, there may be strict limits in place, and you should speak with the insurance agent about this potential risk before making a choice. Without this information, you will be unable to accurately compare different plans, and this can lead you to overpay for too little coverage for your property.
What causes the policy's monthly premiums to increase?
Some homeowners may be surprised when they renew their insurance plan only to find that the monthly premiums have substantially increased. In addition to being confusing, this can also cause people to have difficulty making these payments.
Unfortunately, there are many factors that will determine the monthly cost of your insurance plan, and changes in these factors can influence this cost regardless of whether or not you have filed a claim on your policy. For example, many insurance companies will review a customer's credit history before underwriting the policy, and if your credit score has weakened since you last purchased a plan, your cost can be shockingly higher.
To prevent this type of price shock, you should always ask about the factors that influence the premium before you make a final choice. These agents are legally required to disclose these factors to customers, and comparing them from several providers will help you find one that will be less likely to increase your premiums due to these factors.
Buying an insurance policy for your home can be one of the smartest purchases that you make. However, getting the most from these policies requires having a relatively thorough understanding of them. Learning that plumbing-related damages may not always be covered and why your premium may increase will help you make a smart choice the next time you are shopping for a policy. For more help, contact a company like Barrett Harding Insurance.Share