Does Your Home Insurance Cover Everything?

When you suffer damage to your home or its contents, you expect your insurance company to help you out. And, most do a good job of doing just that.

Still, it's a good idea to review your policy with your insurance advisor and find out what's covered and what isn't. For example, you don't want to discover that your policy will not cover the cost of repairing the damage caused by a flood in your laundry room.

Pay particular attention to coverage in the case of water damage. Some insurance policies don't cover floods and sewer backup unless an additional rider is purchased.

Also, check liability limits. Ask your advisor to recommend an appropriate level. Finally, make sure you know exactly how much your home is insured for. Are you covered for the full replacement cost? Are you comfortable with that coverage or would you rather only insure the actual cash value?

Having the right insurance policy gives you peace-of-mind and is an important part of enjoying your home.