Agents and customers can design property insurance plans to cover a wide array of potential issues. There's always a balancing act between cost and sufficient coverage. In striking that balance, what should your property insurance policy look like? Here are 5 suggestions worth considering.
The concept of premises liability is based on the legal standard that you may be responsible for injuries people suffer at your location. Folks don't necessarily have to be invited to have premises liability claims, either. You should have a property insurance plan that covers third parties for medical expenses arising from personal injuries suffered at your place. If you don't, there are scenarios where you might be sued to the tune of millions of dollars.
Even if you live in the most bone-dry part of the country, it's wise to carry flood insurance. If a set of pipes breaks, that can lead to flooding. Likewise, there are few places in the U.S. that don't at least occasionally receive major downpours.
Winds and Storm Damage
It might feel like this should be covered by flood insurance, but it's most likely not. If there are questions about whether the damage to your roof was caused by high winds versus rising waters, that may be grounds for a rejected claim. You'll want a broad policy to ensure your place will be covered for all of the possibilities caused by storms. Remember, there's no such thing as being too specific when drawing up a policy.
This is one of the most common reasons why you might file an insurance claim. Before drawing up the policy, it's a good idea to inquire about mitigation measures that might reduce your premiums. Even adding a few fire extinguishers in key spots may serve to reduce your property insurance outlays.
Additional measures, such as building firestops into the structure and adding automated suppression systems, can make a major dent in insurance premiums. Insurers offer discounts because they want to reward measures that reduce the chance they'll have to pay claims.
It's wise to make sure your policy covers any vehicles that might be parked on your property. Even if you're sure that your auto insurance plan covers something like a branch falling on your car, it's wise to double-check. Also, there are scenarios where debris from your property might damage other folks' vehicles. In those cases, property owners will want sufficient insurance to protect them in case someone sues.