Home insurance is not easy to understand because it's specific to both the policyholder and the insurance company providing the policy. There are certain regulations insurance companies must follow, but they are often vague enough to allow for some interpretation. Unfortunately, there's no worse time to discover a policy doesn't cover an event than after that event has already occurred. For a little extra help in deciphering your policy, consider the following.
Claims Are Subject to Change
It takes time and effort for a home insurance company to tease out the truth of the many claims they deal with, which is why it's crucial homeowners choose a company with a good reputation. Some insurance companies may deny claims off-hand requiring continuous refiling over long periods of time. In other words, it may be less about the fine print in a policy and more about the ethics of the company a Hoover homeowner chooses.
Insurance Doesn't Cover Everything
Many insurance companies will work on a percentage-based system when it comes to covered repairs. So in the event of a major natural disaster, an owner may be responsible for up to 10% of the total value of the home. The general rule is that the more likely a home is to be damaged, the higher the percentage will be. These expenses extend far beyond the standard deductible, so it helps for homeowners to be prepared.
Negotiation Is Expected
Most homeowners are so overwhelmed with the buying process that they don't think very much about their home insurance. But they should know that they can often negotiate with their company at practically any stage of the game. This means that the more proactive a homeowner is about their claim, the more likely they are to have it settled in their favor. They may not get everything they're looking for, but they'll almost certainly get more than they would have if they'd stayed quiet.
Buyers should also shop around before they pick their final winner, and they should carefully consider the limits of their policy before they buy. A standing limit for the total insured value may initially seem high until a homeowner has to consider the full cost of rebuilding.