Don't get too cozy with your home insurance; it might bite

What do you think of when you hear the term "home insurance"? Most people would probably say that it's a policy that protects your home from damage or destruction due to events such as fire, theft, and weather-related disasters. While that is true, home insurance policies often have limitations and exclusions that can leave you with less coverage than you expected.

For example, many home insurance policies do not cover damage caused by floods or earthquakes. If you live in an area that is prone to these natural disasters, you may need to purchase additional coverage. Additionally, most home insurance policies have a deductible, which is the amount that you have to pay out of pocket before the insurance company will start to cover the costs of repairs.

Another common limitation of home insurance policies is the coverage limit. This is the maximum amount that the insurance company will pay for covered damages. If the cost of repairs exceeds the coverage limit, you will be responsible for paying the difference. It is important to make sure that your coverage limit is high enough to cover the full cost of rebuilding your home in the event of a total loss.

Finally, it is important to note that home insurance policies do not cover everything. For example, most policies do not cover damage caused by wear and tear, insect infestations, or mechanical failures. If you want to protect your home from these types of damage, you may need to purchase additional coverage.

• Talk to your insurance agent about your needs and make sure that you understand the coverage that is included in your policy.
• Consider purchasing additional coverage for things like floods, earthquakes, and high-value items.
• Make sure that your coverage limit is high enough to cover the full cost of rebuilding your home in the event of a total loss.
• Review your policy regularly to make sure that it still meets your needs.