The ABC’s of Charlotte Home Insurance

What if a fire were to occur destroying your home and everything inside? Would you be properly covered with the appropriate homeowners’ insurance policy? Home insurance protects your home, its contents and your other assets in the event of fires, theft, accidents or other catastrophes. Continue reading for the all of the fundamentals of Charlotte home insurance such as what is covered under your policy and how much coverage you need!

The Standard Home Insurance Policy (an HO-3 policy)

A standard homeowners’ policy covers for incidences such as fire, accidental damage, and fallen trees. However, in the event of damage from a flood or earthquake your home insurance policy would not offer protection. Separate policies are needed for these occurrences, and in high-risk areas some mortgage companies will require homeowners to purchase these policy add-ons.

An HO-3 policy also protects your possessions from the same events in which your home is protected from.  However, the key to ensuring that your possessions are fully protected is to have your valuables evaluated frequently to ensure your policy is properly adjusted. Often times valuables such as jewelry, electronics and other items of high value are what people seek specific coverage for in their homeowners’ policy.

The last specific area that standard homeowners’ insurance covers is the liability if someone is injured on your property. For example, if someone slips on your sidewalk then any medical expenses from the injuries would be covered by your home insurance.

How Much Coverage Do You Need?

The main concern to think about when deciding the amount of coverage you need is whether it will be enough to completely rebuild your home and replace the valuables that were inside. If it’s not enough, then your policy is lacking the proper coverage. A helpful hint is to have a home builder walk through your home and give you an estimate for the cost of rebuilding, and that amount should be the minimum amount of protection you purchase.

There are three different types of coverage that you can purchase:

  • Inflation Guarantee Coverage – With the frequent fluctuations and changes in the economy, this is a helpful element that ensures the replacement protection stays current with the market value of your home.
  • Extended Replacement Coverage – This type of coverage allows insurers to offer a maximum payout of about 125% of your home’s insured value.
  • Guaranteed Replacement Value Coverage – This feature offers a guarantee from insurers that they will pay for the rebuilding of your home no matter the cost. Sound too sweet to be true? Possibly, because of its guarantee, this type of coverage is rarely offered and hard to find.

One Final Tip to Remember!

As with auto insurance, your home insurance policy is in place to cover large expenses. If damage occurs to your home that will cost anything less than $1000 to repair, then avoid filing a claim to have your insurer pay for it. An excessive amount of claims may result in a higher monthly premium and therefore an overall higher cost in the long run!

Desiring more information about Charlotte home insurance beyond the basics? Call Spivey Insurance Group at 877-318-5951 or visit our website today! And don’t forget to continue reading our blog for daily hints on saving money and protecting yourself with the help of insurance.

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