Are You Insured Or Do You Just Have Insurance? | Part 2

Priority #3: “Collapse” and “Earth Movement.”

Two other key perils, or “causes of loss” that are not covered under most homeowners policies are “An example of collapse would be an old barn collapsing from aging. You can’t get coverage for old structures collapsing. However, you may be able to find coverage for earth movement, such as a mud slide following a rainstorm. Often this coverage is available as part of an earthquake policy. Use Google to research these two coverages and their availability in your state.

Priority #4: Content coverage

Homeowner policies also cover your contents; generally at 50% of the value you’re insuring your dwelling for. Example, $200,000 coverage on your dwelling, comes with $100,000 coverage for your contents. But for many people, the standard amount of contents may not be adequate, such as if you have really nice furniture. So it is important you talk to your agent about a “home inventory booklet.” This way you can take inventory of your contents and possessions, and record it. But don’t keep that inventory in your home. What if you have a fire and the booklet burns? So keep it at your office or your friend’s home. Or you can visit www.iii.org and get their online inventory guide. Coverage on the dwelling may include specified water damage, but your contents may not be covered for water damage. Be sure to read your policy contract, and ask your agent to clarify coverages. Ask your agent about specific loss scenarios.

The cost of having an online company verses a local agent might be cost effective today, but insurance is for the unexpected. Ask yourself, how much you will be really saving if your home is not properly covered. Are you insured, or do you just have insurance?