Home insurance is there is protect one of your most valuable assets financially. The Insurance Protection Specialists serving the city of Flowood, MS would like you to know the basics of homeowners insurance. Whether you are an owner or a tenant, this information is relevant to you.
The Five Facets of Homeowners Insurance
This part of your policy protects your home and your belongings against perils. Perils are potential events that may cause loss like hail. The policy can either be a specified perils policy, meaning you only have cover for the perils you specify in the policy, or an all-risk policy covering all perils except specifically excluded ones like floods.
This portion provides financial protection from legal liability and lawsuits due to negligence resulting in bodily injury to a third party or property damage.
Medical Payments Cover
This section pays for medical bills if a guest or third party is hurt by accident on your property and requires medical attention.
Additional Living Expenses Cover
If you cannot live in your home for reasons that meet the insurance policy requirements, then this section will pay for your motel or rental bills and possibly some extra living expenses that you may incur while your property is repaired. It is usually when your home is accidentally damaged to such an extent that it is unsafe to live there.
There are other coverage options for the contents of your home not covered by the perils section and for structures not attached to the main dwelling on your property.
Depending on your requirements, cover your home as little or as much as you want in line with the value. Don’t let your home be uninsured!
Speak to the Insurance Protection Specialists serving Flowood, MS today.
Homeowners in Flowood, MS need to invest in a home insurance policy to protect their property’s value. We provide home insurance at Insurance Protection Specialists.
The following are three things you might not know about home insurance in Mississippi.
Certain natural disaster damages might not be covered under a standard policy.
Your standard home insurance policy should cover you for various types of natural disasters. For example, your policy should cover you for damages caused by lightning or blizzards. However, damages caused by hurricanes or earthquakes might not necessarily be covered.
It will help if you read your policy’s fine print to see what causes of damage are covered.
You may need to pay for additional coverage for outbuildings.
Do you live on a property that includes numerous outbuildings? Any building you own detached from your home might not automatically be covered under your home insurance policy.
If you wish to have your outbuildings covered, you need to bring this issue up specifically with your home insurance provider. You may need to invest in some added coverage if there are numerous buildings on your property like a guest home, barn, or detached garage that you need to have covered.
Investing in added coverage may also be necessary if you keep high-value possessions in your home.
Do you keep collector’s items or expensive electronics in your home? If so, you might want to invest in added coverage.
A standard home insurance policy will offer coverage for possessions within your home, but that coverage will be limited. For high-value items, you should invest in added coverage.
Do you want to learn more about your home insurance options in Flowood, MS? We can provide you with the information you’re seeking at Insurance Protection Specialists. Get in touch with us with your questions.
About two-thirds of American homes are underinsured. CBS News reports that a study by Marshall & Swift/Boeckh found that homeowners only have sufficient home insurance to pay for about 78% of the amount needed to rebuild a home that is destroyed.
Areavibes says that the median value of a home in Flowood, MS is $174,500. This means for the average homeowner who lives in Flowood with an underinsured home. If it needs to be rebuilt, there will be the bills to pay of 22% of $174,500, which equals $38,390. Yikes! That is a lot of money to spend in the event of an emergency after a home is destroyed.
Private Mortgage Insurance
One contributing factor that may be partially responsible for this severe underinsurance problem is that homeowners may not clearly understand private mortgage insurance (PMI). PMI is required by some lenders to get a loan. Some may confuse PMI with full home insurance. However, PMI protects the lender, not the homeowner.
If a home with PMI insurance is destroyed, the PMI pays off the balance remaining on the loan. It does not pay anything at all to the homeowner. The balance of the home loan is usually less than the home is worth or the cost of replacing the home. PMI will not help rebuild the home. Moreover, PMI does not cover the down payment or any increased value of the house.
Avoid the Danger of Being Underinsured
Clever homeowners work with their agent at Insurance Protection Specialists, serving Flowood, MS and the surrounding area, to make sure they have adequate home insurance protection in case something terrible happens. Talk with your agent about replacement cost coverage that considers the actual total cost of rebuilding a home. Ask about flood insurance too because that is a separate policy
Contact your agent at Insurance Protection Specialists in Flowood, MS by calling our office to get a home insurance review and a quote for home insurance to be certain that you have adequate insurance protection.