Your home is often your most important and valuable investment.\u00a0 For this reason, you should make sure you have the right type and sufficient amount of insurance coverage to protect your home.\u00a0 Homeowner\u2019s insurance usually protects your home, its contents, and provides coverage in the event people are injured on your property, as well as small amounts of money to pay for medical bills incurred by people who are injured at your home.\u00a0 The amounts of coverage are usually determined by your agent, based on the information you provide.<\/p>\n
There are several options that you can purchase with your homeowner\u2019s policy.\u00a0 The most important is \u201creplacement cost\u201d coverage.\u00a0 You should make sure that you purchase this so that you will have insurance coverage to replace your home, or the damaged parts of your home, with \u201clike kind and quality.\u201d\u00a0 If you do not purchase \u201creplacement cost\u201d coverage, you will only be compensated for the \u201cactual cash value\u201d of your home or its contents on the date when it was destroyed or damaged.<\/p>\n
Other important types of coverage to purchase include building code upgrade coverage and riders to cover jewelry, sporting goods, guns, computers, business equipment or tools, etc.\u00a0 If you are doing business at home, talk to your agent to make sure that you have the correct type and amount of insurance coverage.<\/p>\n
If you make a claim on your homeowner\u2019s insurance policy, you have a duty to cooperate with your insurer.\u00a0 You will be required to submit documents, records, tax returns, bank records, etc. \u00a0You may also be required to meet with insurance adjusters and submit to a recorded statement and an examination under oath.\u00a0 At some point, you will also be required to submit a Proof of Loss form and\/or an Inventory in which you list all of the contents that you claim were damaged or destroyed.\u00a0 You must take these inquiries very seriously.\u00a0 If you misstate anything at all, even through innocent mistake, you may not only face the denial of your claim, but also criminal prosecution for insurance fraud.\u00a0 As a result, if you have an insurance claim related to your home, it is wise to consult an experienced attorney immediately.\u00a0 If you don\u2019t do this at the beginning of your claim, it may be too late for an attorney to help you by the time you realize you are in trouble.<\/p>\n