One of the most common reasons for a denial from your insurance company is that your policy does not cover your damage. To avoid running into this issue, you need to make sure you understand your policy and what it covers.
While there is a range of different policy options, there are a few common policies you can review to get an idea of coverage.
NerdWallet explains an HO-5 policy will offer you the most coverage. It provides for insurance on most of your home’s contents and structure. Your policy may exclude certain items. It is difficult coverage to get as many insurers do not offer it or only offer it to homes in excellent condition in low-risk neighborhoods.
HO-1 or HO-2 insurance
HO-1 and HO-2 policies offer the most limits on coverage. The policy has a specific list of what it covers. Anything not on the list has no coverage. It also limits the reason for claims to a specific list and will only cover those causes.
HO-3 policies are the most common. They will provide general coverage for the most common issues, such as fire, and will cover general property loss. You can also customize the policy to add other property if you like.
When choosing your insurance, it is essential to understand what property it covers and what circumstances of loss it covers. You need to ensure you have proper coverage for all potential issues you could face to get the right amount of insurance to meet your needs. Having good coverage will reduce the chances of a denial for a claim due to your policy not offering the right insurance.