Home insurance policy fine print

Be Sure to Read the Fine Print Before You Buy a Home Insurance Cover Policy

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It is a common scenario: you experience loss or damage to your possessions or your home and you contact your insurance company to make a claim and receive payment. After scanning your policy and speaking with a customer service advisor, you find out that your policy does not fully cover the damage. You are now required to pay out of pocket to replace or repair the items. How can this happen? The answer is simple: many people fail to thoroughly read the fine print before they buy a home insurance policy. They assume that are policies are created equal and what was covered under a family member’s policy is also covered under theirs. These homeowners do not fully understand their individual policies and fail to notice gaps in their cover before it is too late.

Before you buy a home insurance policy, you must read the fine print. If you have any questions about any item or clause within the policy, make sure you contact the provider before you buy home insurance from them. They are obligated to talk to you and walk you through their products before you buy anything from them. Do not feel like you are the only one who has questions about home insurance.

One of the most common reasons that insurance companies reject claims is because people simply do not follow the procedure clearly outlined in the policy handbook. For example, many insurance companies give you a specific period to file a claim. While it is always best to contact the provider immediately, many homeowners wait weeks or even months before they file the initial claim. Unfortunately, they discover that their window of opportunity has since run out, all because they did not consult the fine print in their policy booklet. Now they are stuck paying the total cost of all repairs and damages that have resulted because of the incident. It is a great idea to get into the habit of remembering to file a claim as soon as you realise you will need to.

Some homeowners also assume that it is the insurance company’s job to protect their home. However, the reality of the situation is that the homeowners are responsible for attempting to prevent personal injury, damage and break-ins to the best of their abilities. For example, some homeowners notice that their roof is leaking but they decide not to fix it, assuming that the insurance company will pay for whatever damage occurs. However, if a storm comes through and damages the floors and ceilings, the insurance company will not cover the cost of repairs. Some people may falsely believe that the insurance company would have no way of knowing, yet the insurer will most likely send out an adjuster or contractor to evaluate the damage. These professionals can easily tell if the incident occurred suddenly and is a valid claim, or if the incident had been ongoing for a period of time and the homeowner took no steps to improve the situation. It is important that homeowners read the fine print and take all necessary steps to protect their homes.

If, for some reason, you have any questions or concerns about the fine print in your policy booklet, telephone your insurance company or your agent to get answers immediately. It is vital that you thoroughly understand everything that is covered under your policy.

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