Homeowners typically don’t know what’s covered until disaster strikes, White says. But it’s important to make sure you have adequate insurance before that happens because insurers won’t retroactively add coverage.

“Most homeowners don’t think about their policy until they actually need it,” White says. “So when you buy coverage, you should make sure that there’s adequate limits for what if the whole place burned to the ground, or what if all your stuff was destroyed?”

Insurance typically covers both the structure and a homeowner’s belongings, but White says common pitfalls include failing to insure a house for its actual replacement cost and ignoring the impact of inflation. For instance, a couch bought years ago for $5,000 could now cost $7,500 to replace.

By Aimee Picchi

See Full Story at www.usatoday.com