As a homeowner—or a soon-to-be homeowner—one thing that often gets overlooked until it’s too late is your homeowner’s insurance policy. While it might seem like an afterthought when you’re deep in the process of buying or selling a home, understanding your coverage is crucial for protecting one of your biggest investments.
Hi, I’m Jennifer Blanchard with The Blanchard Team, and for over 20 years, we’ve been helping people buy and sell homes in Basking Ridge and surrounding towns. Today, I want to talk about homeowners insurance and why it’s so important to review your policy before you run into an unexpected situation.
What Does Homeowner’s Insurance Cover?
A standard homeowner’s insurance policy typically covers the basics:
- Fire and wind damage
- Vandalism
- Liability protection (this is important if someone gets hurt on your property)
But here’s where many people are caught off guard. These coverages may seem like a safety net, but there are some critical exclusions you need to be aware of.
What’s Not Covered by Standard Homeowner’s Insurance?
Flooding: If a storm floods your home, you’re typically out of luck—unless you have a separate flood insurance policy. Even if you’re not in a high-risk area, floods can still happen. It’s best to be prepared.Earthquakes: Yes, we’ve had earthquakes in New Jersey, and unfortunately, most policies don’t cover damage caused by them.Mold Damage: Mold caused by slow leaks? Not covered unless it’s a sudden incident. If you have a leaky roof or pipe, you could end up with costly repairs that aren’t covered by your policy.
Are Your Belongings Fully Covered?
Many homeowners are surprised to find that high-value items, like jewelry, art, and electronics, are often not fully covered by standard policies. If these items are important to you, it’s worth looking into additional coverage or riders to ensure they’re protected.
Is Your Coverage Enough?
It’s also essential to consider whether your current coverage is enough to rebuild your home or replace your belongings in today’s market. With rising construction costs, it’s likely your coverage limits may not reflect what it would actually cost to rebuild. If you’ve made any major renovations, your policy might not account for those changes either. This could leave you underinsured in the event of a disaster.
What Can You Do?
If you’re in the process of buying a home or reviewing your current policy, here are a few things to consider adding:
- Flood Insurance: Even if you’re not in a high-risk flood zone, it’s worth considering.
- Replacement Cost Coverage: This ensures you get the full value for damaged property.
- Extended Dwelling Coverage: Helps cover increased rebuilding costs.
- Umbrella Liability Insurance: Offers extra protection if you have risk factors like a pool or trampoline.
Why It’s Important
our home is one of your biggest investments, and protecting it properly means having the right insurance. Not just any insurance, but insurance that fits your specific needs. Now is the perfect time to review your policy or reach out to your agent if you haven’t in a while. If you’re buying or selling a home, knowing your options ahead of time can help you avoid unexpected surprises down the road.
Have questions? Reach out to me, and I’d be happy to help connect you with trusted insurance professionals.
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