Protecting your home is a lot more important now than ever before. You need to protect your assets and valuables from disasters that threaten homes. For this, you need a homeowners insurance if you are a landlord and renters insurance if you are renting.

Your homeowners or renters insurance covers for about 16 named perils but does not cover for flood, earthquake, sinkholes, flooding caused by hurricane, damage by terrorism act, landslides, mudslides, nuclear war or accidents. There are others that may be applicable to you depending on the insurer you use, the area you live and the risk associated with your lifestyle.

To be well informed on your policy caveats, you are advised to study the terms and conditions before you buy. This is to ensure you understand what is covered, the exclusions and to make sure you are buying the right cover for you and your home. This is so important because you are likely to apply for claim in future. If you are ignorant of what your policy covers, you may be denied claim.

It is important to note that while hazards like nuclear war, terrorism damage are totally excluded, flood and earthquake can be covered with a separate special insurance policy. To protect yourself from flood, you can purchase flood insurance from the federal government’s National Flood Insurance Program through your insurer, and for earthquake he can also help you purchase the cover. If you live in a disaster prone area, get all the insurance you may need. Without the cover you are likely to loose your claim when you suffer loss from any of the disasters.

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Apart from the exclusions, there are other circumstances that could affect your claim negatively.

Here are common reasons to deny your claim application.

When you use your home as a business without informing the insurance company he will regard you as being disonest with your information and deny your claim.

When you falsely specify that you have burglar alarm or security devices but don’t have any. This is misleading, fraudulent and enough to deny you coverage.

If you home is burgled and it is discovered that there is no forced entry, you may be assumed careless or deliberately trying to defraud the company.

When you have windows open and not using the locks to secure your home you place yourself in an unfavorable position with your claim.

When you are away from home and have it unoccupied for over 40 days, you will be adjudged careless and rejected when you suffer loss.

Failure to report burglary to the police may affect you. If you are burgled, the first action is to inform the police. The police report forms part of the insurance claim documentation. Without it, may be regarded as fraud.

It is important to be honest with your insurance provider. Don’t withhold information from him nor leave out vital information during your policy application or claim documentation.

If you wish to buy home insurance working with online agents and brokers is advised. They provide you with multiple quotes to compare, saving you time and unnecessary stress.

Are you ready to buy home insurance? I guess this information will keep you on the right track.

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