Home insurance is often a source of many questions. There are so many options and possibilities for protection that consumers often end up with questions about their coverage. Find out the answers to some commonly asked questions about home insurance coverage, and make sure you know the details about your policy before you find yourself at a loss and looking for answers and reimbursement on a claim.
1. Does my home insurance cover the contents of my house during a move?
Generally, your home insurance policy will cover the contents of your home (your personal possessions) during a move. But there are instances where your insurance company could refuse coverage. For example, if a piece of valuable art being moved between residences is damaged during the move with no apparent cause (like a traffic accident) then your insurance company can refuse coverage - unless you have a specific moving clause. Check your policy for specific details. However, perils like theft or damage should be covered, as long as you don't act in a negligent manner.
If you've hired a professional moving company, you can rest easy. Moving companies generally carry insurance against property damage that might be caused during a move - especially if their staff were responsible. Making sure you supervise carefully while remaining clear of the movers, and inspect your goods upon receipt to allow you to report any damages immediately, and protect you from making a claim (to either your insurance company, or the movers) that won't be reimbursed.
2. Does having "all risks" insurance on your home cover you for everything?
Unlike the name suggests, all risks insurance doesn't cover every possible risk to your property. However, it does have the most extensive list of all home insurance options. It includes all possible disasters except for a list of named exclusions, for example, damage caused by insects or rodents, volcano damage, or earthquake damage. In areas affected by earthquakes, coverage is often available at an additional cost.
3. My friend broke a valuable item in my home. Can I claim it under my home insurance policy?
Yes, but your insurance company will likely follow up with your friend to recover the money for the claim that they pay out to you. So if you're looking for reimbursement for the breakage and you're not just going to replace the item yourself, you're likely best to approach your friend for the replacement to avoid having to pay your deductible and having a claim on your insurance record.
4. Do I need a separate insurance policy for my home office equipment?
There are two things to consider here. First of all, your existing homeowner's policy may only cover you for a limited amount of business equipment. And, you'll likely want to secure coverage for all of the equipment that you have on site. Secondly, you will likely not be covered under your liability insurance on your homeowner's policy if someone has an accident in your home office. Adding business insurance to your home (in addition to your homeowner's policy) will ensure that you have the appropriate coverage to avoid financial liabilities in the case of an accident or disaster.
5. If I choose not to replace an item that I claim through home insurance, do I still get the cash?
Even if you do not replace the item, your insurance provider will pay out on the claim if the peril is covered. The difference may be in the amount that you receive as payment. In the case of a replacement value policy, you may need to provide receipts to prove the true replacement cost - as otherwise you may only receive the actual (depreciated) cash value of the goods that were lost or damaged.
Home insurance can be a tricky subject, but you can find out the answers you need, and then make an educated decision as to what coverage is right for you, your family and your home. Once you feel comfortable with the coverage levels you need, shopping around for the best rate is always a smart idea! Checking online for cheap home insurance quotes can help you save money on your premiums while still getting the best coverage.