Does Your Homeowners Coverage Limit Include Volcanoes?

Does Your Homeowners Coverage Limit Include Volcanoes?

Insurance is a serious business. In the wake of both hurricane and flood season, it’s necessary to scrutinize every detail. Have you reviewed your policy lately? Even more so, does your homeowners coverage limit include volcanoes?

What does homeowners insurance cover?

Homeowners insurance covers your home, your personal property, and your combined assets in the event you’re sued or held liable for medical payments. Additionally, it covers you against hazards or other perils to your home. Keep in mind, your homeowners insurance policy must state the coverage to file a valid claim.

As an example, if your policy does not state coverage for flooding, you will not be covered in the event of a flood. If it does not specify coverage for sinkholes, you most likely do not have coverage under that policy. Many homeowners use add-on policies to cover additional types of catastrophes, such as a damaged roof due to wind.

The main functions of a homeowners insurance policy

Homeowners insurance has three primary functions:

1. Repair your home, yard, and other structures.
2. Repair or replace personal belongings.
3.Cover personal liability issues.

It’s crucial to weigh the cost of a policy against the probability of having to file a claim. You may need to increase the homeowners coverage limit if you have more than the average amount of high-value items.

Additionally, improvements to your home will affect insurance rates. For instance, Achieva Credit Union allows homeowners the option of a renovation purchase loan. You can buy a home, then roll the needed renovation costs into the mortgage. You’ll be able to bring a fixer-upper to code, all while maintaining one easy payment.

Volcano coverage

Some homeowner insurance policies cover loss caused by volcanic eruption when it is the result of a volcanic blast, airborne shockwaves, ash, dust, or lava flow. Prices vary depending on location. When going over the details of your policy, you may be surprised to see this item. If you are unsure why you have volcano coverage, call your insurance company directly for clarification.

Set your homeowners coverage limit properly

At the bare minimum, you should get a quote from at least three reputable insurers if you are buying home insurance for the first time. Make sure you’re comparing apples to apples, especially in terms of add-ons. Here are some things to consider:

– Sewer backups or other common home emergencies
– Earthquakes
– Hail
– Windstorms
– Extended replacement costs
– Content replacement cost
– Ordinances and laws
– Inflation protection

Lastly, remember that your homeowners coverage limit may change from year to year. An annual review of your paperwork will ensure that you stay protected.


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