Home insurance policies are intended to give you peace of mind in case something goes wrong with your house. No doubt you made sure you had home insurance when you bought the house. But, many homeowners don’t fully understand what exactly is covered and what is not.
The knowledgeable experts at Golden Way Insurance Services want to make sure homeowners in Garden Grove, CA have the coverage they need including understanding the importance of having gap insurance. So, what exactly is gap insurance. And, why is it so important to have?
Many homeowners are under the assumption that their policy will cover all the costs to rebuild in case of damage or destruction. That’s unfortunately not always the case, and this is where gap insurance steps in and is extremely important to have. Simply put, gap insurance steps in to fill in any cost gap in coverage.
There are a couple of gap coverage options every homeowner needs to know when looking to purchase home insurance. Here are two important options with potential scenarios to consider.
- Extended dwelling coverage – The costs needed to reconstruct a house is different than the market value of the home. Extended dwelling coverage steps in to help cover the construction costs when they are more than the policy limits in place.
- Building Ordinance or Law Coverage – When rebuilding after loss or damage, you will be required to follow the current building codes which have most likely become more strict over the years since you bought the house. If you have a building ordinance or law policy, you will be compensated for the difference.
Contact Golden Way Insurance Services servicing Garden Grove, CA to make sure you have the policy options you need.