3 Home Insurance Facts You Need to Know

Homeowners insurance helps to protect your property, your family, and the things you’ve worked so hard for. It’s also there for you in case of any liability issues, covering medical expenses and legal fees if someone becomes injured on your property or if another person or business files a lawsuit. What’s more, your policy can help replace certain life essentials during a crisis, such as valuables and necessary household items. So, while home insurance may seem like an additional expense to an already stretched-out budget, it’s important that you purchase it to protect your finances. Here are a few home insurance facts you need to know.

Home Insurance Rates Can Differ Based on The Area You Buy Your Property

Did you know that homes that are located near fire departments cost substantially less to insure? Similarly, you could score a lower premium by buying a property in a gated community. While there’s not really a lot you can do about this if you already have a home, it’s important to take such factors into consideration if you’ve just started shopping around for a property.

Your Insurance Company Has the Right to Cancel Your Policy

Don’t assume that you will have continuous coverage just because you bought your policy. Home insurance companies have the right to cancel your policy if you fail to pay the premium, commit fraud, lie or provide false information about yourself or your property on the insurance application, or abandon the policy and allow it to fall into a state of disrepair. Keep in mind that the insurance company can also decide not to renew your policy once the term is up.

Home Remodeling Projects May Not Be Covered

Planning to add a new pool in the backyard? Want to build a new structure on your property? In such cases, it is best to call your agent before you make the addition or begin your renovation. Make sure to check if you need to update your insurance plan due to the renovation or if you need to get any add-ons to protect yourself completely. If you fail to do this and your property is damaged, your claim may not be covered by the insurance company.