Are you fully covered? Understanding home insurance

• Table of contents
• Protect your home like an expert
• What does home insurance typically cover?
• Common gaps in coverage
• Assessing your coverage needs
• Filling coverage gaps
• Saving on home insurance
• How can Panorama help?

A standard home insurance policy is like a financial safety net, covering multiple aspects of your home.

Dwelling coverage safeguards the physical structure of your house – walls, roof, and built-in systems – against calamities like fire, storms, or vandalism. Imagine a tree crashes through your roof during a storm; this coverage pays to fix it. Personal property insurance, on the other hand, protects your belongings – furniture, electronics, and clothing – so if a break-in happens and your TV disappears, you won’t have to watch Netflix on your phone forever.

Liability protection is your financial defense against lawsuits if someone gets injured on your property (because your dog tripped them up), and Additional Living Expenses (ALE) coverage helps cover temporary housing costs if your home becomes unlivable due to a covered event.

Here’s where things get tricky. While home insurance is a superhero, it has its kryptonite –certain risks that aren’t included in standard policies.

Floods and earthquakes? Not covered. You’ll need separate policies for those. If you live in a wildfire-prone area, make sure your policy fully covers fire damage. High-value items like engagement rings, rare collectibles, or that expensive espresso machine you swear you use every morning might exceed personal property limits. And if your home suffers damage due to poor maintenance – like ignoring that leaky roof until it turns into a waterfall – you’re probably out of luck.

Think of home insurance like a tailored suit, it needs to fit your specific needs. The best way to assess your coverage is to:

• Know your home’s value
  Your dwelling coverage should reflect the current cost to rebuild, not just the market value.
• Take inventory of your belongings
  Many insurers offer apps to help catalog your possessions, so if disaster strikes, you’re not guessing what you lost.
• Consider local risks
  if you live near water, consider flood insurance; if your area is prone to earthquakes, that coverage might be worth adding.
• Think about liability risks
  Got a pool? A trampoline? Frequently host parties? These factors increase risk, so higher liability coverage might be a good idea.

If you’re seeing gaps in your policy, here’s how to plug them:

• Get separate flood or earthquake insurance if your area is at risk.
• Opt for extended replacement cost coverage for wildfires or other disasters.
• Review your deductible to balance affordability and financial security.
• Upgrade to replacement cost coverage so you get full reimbursement for lost items, not just their depreciated value.
• Consider riders for valuables like jewelry, art, and high-end gadgets.
• Check if you need home business coverage if you work from home.

Home insurance is important, but you don’t want to overpay. Here are some tricks to cut costs without cutting corners:

• Bundle your policies
  Combine home and auto insurance with the same provider for discounts.
• Raise your deductible
  A higher deductible means lower premiums (but make sure it’s an amount you can afford in an emergency).
• Make your home safer
  Installing a security system, fire alarms, and storm shutters can earn you discounts.
• Shop around
  Compare quotes from multiple providers to ensure you're getting the best deal.

Home insurance isn’t a one-size-fits-all solution, and your needs may change over time. Regularly reviewing your policy will help ensure that you maintain adequate protection for your home, belongings, and lifestyle.

Panorama can help you through the insurance process and recommend providers – just contact Jo Borda, the Director of our Client Services Department for friendly advice and trusted recommendations.