Home insurance serves many purposes, but its primary function is to protect your property from loss due to damage or theft. There are many ways insurance is used to protect an individual’s property. These include proper coverage amounts, building materials used and routine maintenance to the property being insured. While insurance provides for protection of covered losses, however, it does not cover losses due to ignorance.
The main way to protect your property is to ensure there is enough coverage on the insurance policy. Some people try to save money by eliminating or under-insuring some aspects of their property. There are better ways to save money on a policy than to carry coverage amounts that may be too low. Protecting your property should be your first priority when obtaining or updating a homeowner’s policy. Typical polices offer coverage for damage to the dwelling as well as safeguards for such accidents as overflowing sewers or drains.
Protecting your property goes beyond just purchasing an insurance policy. While insurance is supposed to provide for any unforeseen losses, that doesn’t mean that people should not take care and use better materials during construction. Generally, the reason people don’t use the best and most protective kinds of building materials is because of cost. However, when better quality materials are used, the insurance rates are generally cheaper and allow for a greater amount of coverage because the reduced risk of a loss. Using masonry instead of traditional frame construction, for instance, can provide better protection…and, ultimately, lower insurance costs.
When you apply for a new policy or renew an existing policy, most insurance companies will take into consideration home improvements, the condition of the roof and other aspects of the property. The better the property is maintained — or the higher degree of quality with which it was built in the first place — the less likely it is to suffer damage from wind, rain, lightning or other elements.
You also need to be aware of exactly what your policy will cover. Just because you’ve taken all necessary precautions to protect your property, don’t assume that insurance will cover everything. After all, insurers have been known to deny claims from time to time.