Homeowners should know what is generally covered before submitting a claim. However, all too often a claim is denied or homeowners find out that coverage is surprisingly lacking. Those that have been subject to floods have often found far too late that food damage is not covered in a standard policy. This is why it is important to learn more about home insurance. Depending on the area and typical weather conditions, homeowners may want to expand their coverage to avoid a potential issue. What are some of the common home insurance issues? (Click here to see Northern Michigan's finest collection of vacation rentals)

For informational purposes only. Always consult with a financial advisor before proceeding with any real estate transaction.

Know Your Policy

All policies are not the same. Standard policies often cover types of structural damage to a home and property. Standard policies often do not cover damage from floods and earthquakes. One needs to purchase flood insurance separately through an insurance agent or the National Flood Insurance Program. Those living in areas prone to such issues may want to look into getting additional coverage. Homeowners may have to dig deep into their own pockets at times when they can least afford to do so when they do not have adequate home insurance coverage for specific types of damage.

Basic home insurance may also not cover other areas. Do not submit a claim for basic maintenance, routine wear or tear or when an older AC unit needs to be replaced due to age. When deciding to buy a home, future homeowners should be aware that there is a limit to coverage for jewelry. Additional insurance may be necessary for individuals with special collections or whose jewelry value exceeds this limit. Other potential issues not covered with a standard home insurance policy in general include:

  • Mold damage;
  • Sinkholes (exception for Florida);
  • Sewage backups; and
  • Termite damage.

Speak with an insurance agent and know what may or may not be covered in the standard home insurance policy. Get the coverage needed to protect oneself from potential damage and loss of assets. (Click here to see all Northern Michigan Waterfront Lifestyle Homes for Sale)

Know What to Expect

The right insurance policy can help homeowners recover after serious damage to their home and more. Homeowners should be aware of the limits on a policy as each policy offers a maximum payment amount. However, the value of a home may not be fully covered if it exceeds the payment amount, leaving homeowners having to make up the difference.

Home insurance policies are an additional expense. Mortgage lenders may want a new homeowner to purchase a specific level of coverage and this can create significant additional payments for homeowners. Homeowners must maintain their insurance even after paying back the entirety of the mortgage loan.

It is relatively easy to find an agent selling home insurance policies. However, Northern Michigan homeowners may want to compare standard policies based on factors such as customer service record, reputation, local availability, rates, and coverage options. Homeowners may also want to look into whether or not fire coverage or flood insurance is covered and check into additional special programs. An agent may try to up-sell a homeowner on additional coverage but a homeowner needs to decide the level of coverage is needed and if supplementary insurance is warranted.

Work with an Agent

Spend time to find an agent that can clearly explain the coverage offered in policy and work with companies known to provide good customer service when it comes to claims and more. However, homeowners need to read over the policy and ask questions. Know of any limitations or exclusions to any home insurance policy under consideration.

For informational purposes only. Always consult with a financial advisor before proceeding with any real estate transaction.

Focused on Northern Michigan Investment Real Estate

Brook is focused on lifestyle real estate investment properties as most people want a vacation home to make lifelong memories that endure for their entire family, leave a profound legacy for generations, and they want a solid financial investment at the same time.  While the area does have many good realtors, there aren’t many with the unique financial, vacation home investing, and technology marketing background. Brook uses his diverse skill set to help clients properly evaluate and determine whether a vacation home makes financial sense.

"I have significant experience buying and selling Northern Michigan real estate and I'd like to help you find the perfect home. Send me a message or give me a call at 231.459.3179 to learn more today."

Continue Your Northern Michigan Real Estate Search
Explore homes and real estate in the Northern Michigan communities below or contact Brook Walsh to help you with your search. 

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