Home » News » 6 Things You Might Not Know About Your Homeowners Insurance Policy
6 Things You Might Not Know About Your Homeowners Insurance Policy
When it comes to buying homeowners insurance, there are lots of things that your agent will probably tell you, especially when it comes to all the things that your policy will cover. However, there are a number of things that they don’t tell you about your policy, things that you need to know in order to truly understand what you are covered for and what you aren’t. Here are six things that you might not know about your homeowners insurance policy.
1. Not All States Require Home Sellers to Disclose Home Defaults
As if you needed any additional reasons for having a home inspection completed before you purchase your new home, some states don’t require sellers to fully disclose everything that might be wrong with the house. Subsequently, sellers are also not responsible for damages that these undisclosed defects may cause and neither is your homeowners insurance carrier. Do yourself a favor and get a thorough home inspection prior to buying a home.
2. Landscaping may Only be Covered up to a Small Percentage of a Home’s Value
Having a beautiful landscape will not only make you the envy of all your neighbors, it can also help you increase the value of your home. However, beautiful landscaping is often not covered in full against loss under your homeowners insurance policy. Many policies don’t cover landscaping at all and those that do usually offer coverage as a small percentage of your home’s value.
3. Home Insurance Exclusions May Include Roofer Liability
Yes, your homeowner’s insurance policy does provide protection against financial loss as a result of someone who has been injured on your property. However, if that injured someone is a working professional such as a roofer, electrician or other contractor who is supposed to have insurance covering themselves, your insurance company may not cover their medical costs either, leaving you to hold the bag.
4. A Home Insurance Claim must be Filed within a Reasonable Time After the Event
While it is certainly understandable for you to be shaken up and not running on all eight cylinders after a catastrophic loss, you only have a certain period of time to file a claim you’re your homeowner’s insurance carrier in order to receive compensation, leaving you to foot the bill for repairs on your own.
5. Insurance Claims Arising Out of Preventable Events may not Qualify
If you don’t take the steps necessary to prevent damage to your home, any damage that results won’t be covered. For example, let’s say you have a leaky window and you don’t repair or replace it. The water that comes in through the window can cause damage to the interior of your home. Your homeowner’s insurance doesn’t have to cover the damage because they can state that the damage was preventable.
6. If your Home’s Equity is Greater than 20% of the Purchase Price PMI is not needed
Most lenders will require you to have private mortgage insurance if your loan exceeds 80% of the value of your home. However, you might be told that you have to have it if you don’t pay 20% down in cash on your home, even if the loan does not exceed 80% of the value. This is simply not true. In addition, if you have PMI and have paid down the balance of the loan so that you now owe less than 80% of your home’s value, you can drop your PMI and reduce your monthly payments.
If you are looking for information on homeowners insurance Honolulu HI, contact your local insurance agent. They can help you with your homeowners and renters insurance Honolulu HI needs.