Choosing the right homeowners or renters insurance involves more than simply valuating your assets and choosing the cheapest premium offered. Many insurance products are designed to suit a broad customer base, so it’s important to make sure your policy covers what’s important to you. Here are five things you should consider when purchasing an insurance policy.

1. Know your limits

Insurance policies often have a cap on the amount of coverage for valuables. If you have specific assets worth more than the standard limits, you should consider insuring these items separately to ensure replacement.

2. Evaluate your travel plans

If you leave home for extended periods (usually more than two months), it may be worthwhile to check the maximum term that applies with your insurer as you may require extra coverage.

3. Take care of termites

Damage from pests, such as termites, is usually not covered in your policy. Insurance companies see pest control as the homeowners’ responsibility in the normal upkeep of the property and a preventable event.

4. Don’t count on coverage for flooding

Insurers are often quite restrictive on flood coverage so it’s a good idea to understand whether a policy covers flooding and how flooding has been defined.

5. Protect your home office

If you have a designated space for working from home, you will need to have a separate business insurance policy to cover you for any damages that may occur to your home office.

Act now

The stressful day following a storm or home invasion is the worst possible time to learn whether or not your valuables are covered. Assess your needs and make necessary policy changes now, before it’s too late!