2. “Maximizing Your Home Insurance: What’s Covered, What’s Not, and How to Save”

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What Is Covered by Homeowners Insurance?

Homeowners insurance is essential for protecting your most significant investment—your home. It typically covers your home and personal property against damage or theft and provides liability protection if someone is injured on your property. However, additional coverage may be necessary to ensure full protection.

Standard Homeowners Insurance Coverage

Standard homeowners insurance generally includes four types of coverage:

• Dwelling Coverage: Pays for repairs or rebuilding your home due to damage from covered incidents, including other structures on your property like fences and garages.
• Personal Property Coverage: Covers the repair or replacement of personal belongings such as furniture, clothing, and appliances if they are damaged, stolen, or destroyed by a covered event.
• Additional Living Expenses (ALE) Coverage: Pays for extra costs of living elsewhere while your home is being repaired or rebuilt after a covered event.
• Liability Insurance: Covers medical expenses and legal costs if someone is injured on your property or if you or your family members cause damage to others’ property.

What Is Not Covered by Homeowners Insurance?

Standard homeowners insurance does not cover certain risks, including:

• Floods: Typically covers water damage from above but not from below.
• Earthquakes: Not covered as they are not common in many areas.
• Sinkholes: Generally not included unless specified in the policy.
• Sewer or Septic Tank Backups: Not covered due to preventable maintenance issues.
• Normal Wear and Tear: Damage from regular use is not covered.
• Insect or Animal Damage: Considered preventable and not covered unless it triggers a covered risk.

Consider These Home Insurance Add-ons

To enhance your home protection, consider these additional coverages:

• Flood Insurance: Available through the National Flood Insurance Program and private insurers.
• Earthquake Insurance: Obtainable from private companies or the California Earthquake Authority.
• Sinkhole Insurance: May be available as an endorsement or separate policy.
• Water Backup Insurance: Covers damage from sewer, septic tank, or sump pump failures.
• Replacement Cost Coverage: Reimburses the cost of purchasing new items equivalent to the damaged ones.
• Excess Liability or Umbrella Coverage: Increases liability limits and applies to both home and auto insurance.
• Enhanced Dwelling Coverage: Includes inflation coverage, extended replacement coverage, and guaranteed replacement cost insurance.

How to Save Money on Home Insurance

Here are some tips to save on homeowners insurance while maintaining adequate coverage:

• Raise Your Deductible: Higher deductibles usually mean lower premiums.
• Reduce Risk: Add safety features like home security systems and eliminate potential hazards.
• Look for Discounts: Check for discounts through employers, membership organizations, or for seniors and veterans.
• Avoid Frequent Claims: Filing fewer claims can help keep premiums lower.
• Bundle Your Insurance: Combining home and auto insurance can earn you discounts.
• Shop Around: Compare quotes from multiple insurance companies annually.
• Improve Your Credit Score: A better credit score can lead to lower insurance rates.

The Bottom Line

Protecting your home with insurance is a wise financial decision. Regular home maintenance and monitoring your credit can help reduce risks and ensure you have the coverage you need. For any mortgage service needs, contact O1ne Mortgage at 213-732-3074. We are here to help you with the best mortgage solutions.

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