When you buy home insurance, you might expect it to cover all your personal belongings. That could be true. However, you need to make sure your policy includes the right amount and type of property coverage. Here's what to look for.

What's The Policy Limit?

Your personal property coverage doesn't necessarily cover everything you have in your home. There's typically a fixed dollar amount that you select, which is the maximum amount it will pay in the event of a claim. So, you'll need to figure out the value of what you have and choose a limit that covers at least that amount. If you lose more than your policy limit in a covered incident, your insurance company will only pay the amount of your limit. Keep in mind that certain types of items - such as collectibles or expensive items - often have sub-limits included. Your insurer will only pay up to a specific amount for those items.

What Type Of Incidents Have Coverage?

Your insurance policy should spell out what types of incidents the policy covers. These commonly include fires, lightning, theft, and internal water damage. Most home insurance policies don't cover floods, earthquakes, or certain other types of disasters unless you buy special coverage. You won't receive any reimbursement for your property if the incident that caused your loss isn't covered by your policy.

What's Your Deductible?

When you purchase home insurance, you have the option to choose a higher deductible and pay a lower rate. However, your insurance company will only pay the value of your claim minus your deductible. If the value of the damage is lower than the cost of the deductible, then your policy won't pay at all. Your deductible should be something that you can easily cover from savings. Note that some policies may have different deductibles for different incidents.

How Much Will You Receive?

There are different ways insurance companies calculate how much you will receive for property damage or loss. Some policies give you the current cash value of your property. This is the value you would expect to pay for a used item of the same age and condition of what you had. Others will cover you for the replacement cost of a new item.

What Property Can You Insure?

Your property coverage may also have separate, lower limits or exclusions for certain types of items. This is usually for such items as electronics, jewelry, and collectibles. You may not have full coverage for these items unless you add an additional endorsement to your home insurance policy. Therefore, tell your Tanenbaum Harber Insurance Group agent about these items and their values. They can help you choose the right way to insure them.