Your home is likely one of your most significant investments and most important responsibilities, so protecting it is naturally your priority. You will invest in a homeowner’s insurance policy for precisely this reason. Home insurance covers your home and belongings from a variety of risks and also gives you the resources to rebuild your home in the event of a total loss.
There are usually six parts to a home insurance policy.
- Dwelling amount: This is the coverage you have to replace or rebuild your home if it’s completely destroyed. It is estimated based on the construction costs in your locality. The cost of land is not included when calculating the dwelling amount.
- Structures: The coverage for additional structures such as a garage, barn, swimming pool, shed, etc. Many policies include coverage for structures by default, and that’s 10% of the dwelling amount, but if you need more, you should purchase it.
- Personal property: This includes the contents of the home, such as furniture, rugs, drapes, clothes, gadgets, and appliances. Most policies include 50% of the dwelling amount to cover this, and some go as high as 70%.
- Loss of use: If your house becomes uninhabitable, then this covers the cost you will incur to live in a hotel while the house is being repaired. This is typically 20% of your dwelling amount.
- Liability coverage: This part of your policy covers you against lawsuits related to injuries or property damage. It will be helpful if an individual or a car is damaged due to a falling tree, and someone sues you, or someone is injured in your home. It will also pay for the damage caused by your pets. It covers a variety of incidents when you may have been negligent and get sued. There would be a fixed amount of this coverage as part of your policy.
- Medical payment: This covers the expense of a guest who is visiting your home, gets injured, and needs medical treatment. The amount is usually fixed in the range of $5000 or so.
If your home does get damaged in any way, and your insurance company sends you an adjuster, that individual is working for the insurer and is trying to pay you the least amount possible. But you do have the right to hire your own insurance claims adjuster. Your public adjuster acts as an advocate for you, the policyholder, and will help you to submit, assess, document, and, most importantly, negotiate a home insurance claim settlement.
When a loss occurs, a family may have lost their home due to fire or flood or hail or any other reason. The public adjuster assists that family to determine the extent of the damage and deal with questions about whether the home is inhabitable or not. Public adjusters are experts in claim assessment, and they will write detailed reports about the damage. They will also coordinate with reconstruction companies, builders, and contractors, to determine the cost of repair and restoration.
Once the cost is known, the public adjuster will analyze the policy to determine what it should cover, and negotiate with the insurer. In these ways, your public adjuster will help you to get the best possible settlement.
Licensed public adjusters like Experienced Public Adjusters work only for you, never the insurance company, and we receive only a part of your settlement.