Most home mortgages come with built in home insurance policies. It’s standard practice for the lending company, the bank, to protect their investment. The house belongs to them, until you have paid for it in full. It’s like a car policy in many respects. The difference is that, a car policy is not included in the car payment. But, until the car is fully paid for, the loan company will insist on a specific amount of coverage that you must carry. A mortgage company works the same way. The insurance policy on your home covers what they consider important. It may not cover what you consider important.
Most standard home insurance policies will cover things like fire damage, hurricane or wind damage, rain or snow damage, and other acts of God. They generally do not cover any personal property at all. If they do cover personal property, it will be a generic amount. If you have collections or a special item, it will not be covered by a standard policy. Generally, a standard policy only covers the structure.
Let’s imagine a scenario. A big storm hits your neighborhood, and a tree is hit by lightning. A limb breaks off and falls through your roof. The damage to your roof, and possibly even a few nights stay at a hotel, is covered by insurance. The damage to your bed, and other personal property, is not specifically covered. You should ask a Raleigh Insurance agent about adding personal property to your policy.
Often, a home insurance policy will not automatically offer you earthquake coverage or flood coverage. It is less expensive to get earthquake coverage, even in an earthquake prone area than, it is to get flood coverage. Why is that? The actual chances of an earthquake causing significant damage to your home is minimal. But flooding is very common, even in desert areas. You will need to ask about having these added to your coverage.
Insurance companies are not trying to keep things from you. Most people don’t request flood insurance, especially if they don’t live in a flood prone area. But remember, that any place can flood. It is also not common knowledge that, earth quakes do not need to happen on a fault line.
If you want more insurance, simply ask for it. You need to know what is on your policy. Call a Raleigh insurance agent and discuss your insurance policy and your needs with them. If you’re new to an area, an insurance agent can be your best resource. An insurance agent can be the most knowledgeable person in the area about local weather patterns, and common acts of God in the area.