In California part of the Insurance Code includes a Residential Property Insurance Bill of Rights. Other states may not actually spell things out so clearly and make a bold statement in the Insurance Code, but I think every property owner should. This is my version of the Homeowner Property Insurance Bill of Rights.
The most important and largest investment most people will make in their life time is the purchase of a home and the personal property they put into it. In order to protect this asset, homeowners should take time to understand the homeowners insurance market.
- Take time to read your homeowners policy and understand:
All the coverage and limits. Most insurance policies include several sub-limits for different sections coverage, including:1-The actual building and additional structures, such as sheds, gazebo‘s and detached garages.
2-Personal property.
3-Debris removal.
4-Additional living expense.
5-Detached fences.
6-Endorsements or additional coverages.
- Be sure to keep records of any improvements or renovations you make to the structure of your house. These investments may cause a need to increase your coverage.
- Make a list of all your personal property. Some pictures or video documentation is helpful in the case of a loss. The list should be kept safe and away from the house.
- Shop and compare insurance, not every policy is the same and the amount of coverage and prices vary from one insurance company to another.
- Consider the cost to rebuild or replace your home or property in the current market. You might want to get an independent evaluation of what this cost might be in your area.
- A good agent or insurance company should be willing to help you determine the best policy limits to cover the cost of rebuilding your house.
- If you have questions you should be able to ask your insurance company for an explanation of how the policy limits were determined.
- Before you purchase a policy be sure to ask for the companies customer service telephone number, to answer questions you may have about underwriting, rating, and claims matters.
- Find out if in the event of a claim, you will be given an itemized, written scope of loss report prepared by the insurer or its adjuster.
- Find out what your rights are when it comes to the appraisal process and resolving claims disputes.
- Learn about your own states insurance laws, enforcement and how to contact your insurance commissioners or regulators office.
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