Home insurance is important. It protects your structure and belongings in case of various emergencies. But what is or isn’t covered can be hard to understand. Your coverage may manage everything related to storm damage, but not issues from poor installation. That means, if your roof was improperly installed, some of the expenses could come out of your pocket.
Understanding Home Insurance
First of all, insurance plans aren’t created equal. They can have differing deductibles and varying coverage limits. Your building coverage may be combined with protections for your contents, or these services may be separated. This fact by itself can make coverage confusing.
Second, your coverage varies depending on the source of the damage. Storm damage coverage is often fairly comprehensive, providing assistance with the internal and external structure and possibly belongings (depending on your plan). However, coverage for improper installations or wear and tear aren’t normally as generous. And the difference can cost thousands.
If a sudden rain and windstorm rips the roof from your house, many home insurance plans cover roof repairs as well as any other damage caused by the water. However, roof leeks caused by age-related failure or subpar initial work, then your coverage is different. Assistance can be available for the internal water damage, but the repairs to the structure may be your responsibility.
Why You Need to Understand Your Coverage
If you want to plan for future events, you need to know how your home insurance works. Covering any shortfalls with savings makes repair costs more manageable regardless of the cause. For example, if you know your roof is reaching its end-of-life, then you need to save enough for the replacement. If the roof leaks, your insurance is unlikely to cover the roof repair if the failure relates to regular maintenance.
However, only repairing interior damage isn’t a strong solution . If you don’t make the necessary repairs, you are setting yourself up for more damage in the future. Unless you resolve the source of the problem, it will happen again.
And making claims against your home insurance can raise your premiums, costing you more every time you make a claim.
Then Why Have Coverage?
Holes in your coverage make it seem like maintaining insurance isn’t worth the effort. But if your home catches fire or suffers another devastating event, you’ll be singing a different tune. Yes, home insurance doesn’t cover every issue or eventuality. But, it does provide notable protections during catastrophic events not related to your home’s condition.
It’s important to remember that fire and storm damage can happen to anyone. If you don’t have insurance, you will be responsible for all of the costs of repairing the building and replacing your belongings. The average home price in Britain for 2015 was over £280,000. Now imagine the cost based on destroying everything. With that in mind, doesn’t it seem like a good idea to understand the limitations of your insurance? So, plan ahead and start saving now.