Homeowners Insurance: Five Details Worth Checking Before a Loss

A homeowners policy is easier to understand before you need to make a claim. Set aside a little time to review your declarations page and ask what the rest of the policy means for your home.

1. The amount of dwelling coverage

Ask what your dwelling limit is intended to cover and whether it still reflects the cost of rebuilding. A home's market price and the cost to rebuild it are not the same thing. Renovations, additions, or changes in construction costs can make an older estimate worth revisiting.

2. How a covered loss would be valued

Replacement cost and actual cash value are different ways a policy may value covered damage. Actual cash value generally takes depreciation into account; replacement cost generally does not, subject to the policy's terms and limits. Ask how your roof and personal property would be valued, because different parts of one policy may be treated differently. Also ask whether any steps are required before a replacement-cost payment is completed.

3. The deductible you would pay

Find the deductible on your declarations page and ask if a different deductible applies to certain types of damage. Some deductibles are fixed dollar amounts; others may be expressed as a percentage of an insured value. Have your agent translate a percentage into a dollar example based on your current policy, so it is not an unpleasant surprise later.

4. Your belongings and any special limits

Make a simple home inventory: photos or video by room, plus receipts, model numbers, or appraisals where available. Store a copy somewhere secure outside the home. Ask whether items such as jewelry, collectibles, or equipment have special limits or need additional coverage. An inventory can help you estimate needs and document belongings if you later file a claim.

5. Liability and temporary living costs

Ask what liability limit you selected and whether it fits your situation. Also ask when the policy's additional-living-expense coverage could apply, what expenses it covers, and any time or dollar limits. The answers depend on your contract and the reason you cannot stay in the home.

Bring to your review: your declarations page, a list of renovations or major purchases, an updated inventory, and any questions about deductibles or exclusions. Fulton Insurance Agency can walk through the terminology with you.

Request a homeowners coverage review · Call 405-324-1115

Consumer resources: NAIC on actual cash value and replacement cost · NAIC home inventory guidance

This article is general information. Whether any particular loss is covered, and how much an insurer pays, depends on the policy, endorsements, limits, deductibles, and claim facts.