Philadelphia Homeowners Insurance Companies and Your Home
While you may think that most policies for homeowners insurance in Philadelphia are similar, the truth is that every one of them is different. That's why it's so important to understand what's covered in your policy. By not reviewing your policy, you may mistakenly think you are covered for incidents and damages that you are not. Below are some examples.
One good example of this is replacement cost vs. fair market value. Replacement cost offers a way to bridge the gap that inflation sometimes causes. If replacement cost isn't something offered by your policy, then any property will have to be assessed according to its fair market value.
While replacement cost may seem like a reasonable type of coverage to have, it's important to consider that some items depreciate more quickly than others. Over a number of years, certain items may not produce enough money from a claim to cover their replacement. Replacement cost can be covered for both the home and for personal property.
Where Does Home Insurance End And Auto Coverage Begin?
One scenario that leaves many homeowners feeling confused is when their vehicle is broken into while it's sitting on their property. In general, with your homeowners policy, any items stolen from the vehicle will likely be covered. However, a more involved auto policy may cover these items as well. But some exclusions can occur with a homeowners policy if there were items in the car which were used only in the vehicle.
Personal Injury Coverage May Be Limited
Although many Philadelphia homeowners insurance policies offer coverage for anyone injured on your property, this coverage is not unlimited. It's a good idea to think about all of the potential hazards in and around your home, such as a broken step, or areas of your property that tend to become slippery over the colder months, and then choose your level of coverage based on these, and on the number of people you expect to visit your home over a period of time.
Understanding Your Deductible
Your deductible is the amount that must be paid before reimbursement on a claim can be given. Many homeowners try to decrease their monthly, quarterly or annual payments by raising their deductible. But this can mean that should the time come to submit a claim, the amount of the deductible will be not within your reach to pay. Many mortgage providers have made it mandatory for homeowners to have insurance on their properties with deductibles that are below a certain limit. Check with your mortgage provider to see what their limits are before choosing a lower payment amount.
Overpaying Is Easy
Taking the time to read through what your policy covers can actually save you a lot of money in the long run, because it can save you from purchasing coverage that you don't need. In addition to reviewing your policy, find out what those you know have for coverage and why. This can also help you to determine which extras will benefit you and which ones will not.
Hazard vs. Homeowners Insurance?
Believe it or not, there is a difference between hazard and home insurance. Hazard policies do not take the place of homeowners insurance; rather, it protects you against specific hazards that your homeowners policy does not cover. Most commonly, hazard coverage is there to protect against natural disasters that your homeowners policy doesn't cover.
Not everyone will need hazard insurance. The need for this type of policy is largely dependent on where you live. If you live in an area at low risk for the occurrence of natural disasters like earthquakes and hurricanes during the lifetime of your home, then this type of coverage may not be for you.
Our helpful guide can help anyone looking to compare Philadelphia homeowners insurance in order to have their assets adequately protected from the perils of life. This is definitely one item on your to-do list that you don't want to procrastinate on.