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The thought of your home in Burlington, North Carolina being destroyed in a fire or storm can be worrisome. Homeowners face the need to make mortgage payments and rebuild their homes to continue to have a place to live. While home insurance policies differ between carriers, there are a few things to look for to ensure you are covered if your home is destroyed.
Covered losses
Most homeowner’s policies cover for events including fire, storms and vandalism. However, without additional insurance, you may not be covered for floods or earthquakes. You should check to see if your home is in an area that is prone to damage from earthquakes or flooding. Adding this insurance can be critical in paying your mortgage and rebuilding your home in a disaster.
Amount of coverage
You should take a close look at your policy limits. Your homeowner’s insurance will have limits for the amount allowed for home repair and rebuilding and a set amount for your personal property. If you have taken out a second mortgage, or owe more on your mortgage than your insurance covers, you are not fully protected. You will want to increase the amount of insurance you have to rebuild your home and cover mortgage issues.
Check your policy for living expense and loss of use coverage. Most policies do provide a certain amount to cover extra living expenses if you cannot live in your home while it is being rebuilt. However, this would be your extra expenses, not your existing mortgage. Insurance policies are generally designed to rebuild your home or pay off the existing mortgage, with any remaining amounts given to the homeowner for rebuilding.
Don Allred Insurance is your independent insurance agency in the Burlington area. Contact us today if you have any questions about what is covered under your home insurance policy. An independent agent will be happy to work with you to ensure you have the coverage you need.