Homeowners can never predict if or when a fire will occur in their homes, but most people have homeowner's insurance just in case this ever happens. If you are concerned that you may someday experience a house fire, you may want to make sure that your insurance policy would fully protect you, and here are several things to know about this.
Make sure you have replacement coverage
The first thing to know about homeowner's insurance is that different policies have different valuation methods, and in the event of a fire, you would be in a much better position if your policy offered replacement coverage as the valuation method. With this method, you can put in a claim for every item you lose in the fire, including your house, and your insurance company would compensate you for the amount it will cost you to replace these things. The other method used is one that bases the value on the actual value of the goods, and this method results in less compensation because it takes depreciation into consideration.
Add riders if needed
Secondly, if you have a fire and lose valuable goods, you would not be happy if you discovered that your policy did not even protect some of the things you owned. Adding riders to a policy is one of the only ways you can make sure every last item is protected and covered for the value of the items.
Choose ALE coverage for your policy
Additionally, you should always make sure your policy provides additional living expense (ALE) coverage, as this is the coverage that will help you pay for all the extra expenses you encounter after the fire. ALE helps you pay for your meals, your hotel bill, or any other expenses you suddenly have because you cannot live in your house.
Review your policy annually
Finally, it is a good idea to take time each year to speak to your insurance agent to ensure that you update your policy as needed. During this time, you can make sure your coverage amounts are correct and that you have all the coverage types you need. This is also a good opportunity to ask questions if you have any or make changes if needed.
If you take these steps and ever experience a fire, you should be fully protected from it. To learn more or made adjustments to your current policy, contact an insurance agency, such as Scovotti Insurance, today.