Make Sure That You Have The Right Homeowners Insurance
Your house is probably your biggest investment. You bought your house because you want your family to have a nice place to live and also because you want some security for your future. That means you should take measures to protect this valuable asset. Unforeseen damage to your house can be very costly. To protect yourself from repairs that you cannot afford, you need to have right home insurance.
Your insurance offers you peace of mind that if ever your house suffered damage from a major catastrophe, the repair costs will be covered. Common situations includes damage caused by fire or from other things beyond your control. Insurance companies offer many different types of policies with different level of coverage. You will need to think about what kind of coverage you need before you start shopping for the right one.
You should not assume that a policy will cover what you need to cover without reading it over carefully. Sometimes coverage for a particular type of damage might be something that has to be added to the policy at an extra cost. If you have any questions about whether or not something is covered, talk with the insurance company representative and get clarification. Do this before you sign on the dotted line so that you will not be surprised if ever have to file a claim.
Also, ask the insurance agent if there are ways to lower your insurance premiums. Sometimes things like installing a security alarm system in your home can reduce your premium because the insurance company looks at these precautionary measures favorably. Because your insurance also covers your personal property inside your house, anything that can deter theft from your home, such as a security alarm system, will have a positive effect on your insurance rates.
You should also be careful not to purchase insurance for things that will not likely happen. For example, if you live in a desert area that get little rain, you will probably not need any flood insurance.
Shop around to get the best rates. There are tools on the web that enable you to compare rates across different insurers. These tools are convenient because they take one set of criteria that you provide, then filter them through their database of insurers. You will get a list of insurance companies and their respective premiums. From there, you can choose a few of the the best ones and contact each of them to get more information.
Once you get home insurance, it is important to reassess your needs every year when your insurance comes up for renewal. See if anything has changed that would require an adjustment in your premiums. If you have done some upgrades in your home, you might be able to get a discount. Check with your insurance company to find out the specifics.
Your insurance is designed to protect your home, your personal property, and the people in your home. If you keep valuable items inside your house, like jewelry, art work, or high-end electronic equipment, you might want to take photographs of those items and document when they were acquired, and how much you spent on them if you know. If any of these items ever get stolen from your home or get destroyed by something that happened to the house, these photographs will make it easier for the insurance adjuster to process your claim. Keeping photographs will also help you not to leave anything out when you file your claim.
The words that an insurance policy uses can be full of legalese and terms that you might not be familiar with. Never assume anything when you read the terms and conditions. Read it over and make sure that you understand exactly what is covered and what is not. If you have any questions at all, contact the insurance company directly and ask questions until you get a satisfactory answer.
Always keep your home insurance up to date, and pay your premiums on time. If you let that lapse, you might have a break in your insurance and lose coverage. Your insurance gives you peace of mind that your most important assets are covered.
Two Types Of Home Insurance Quotes
Before you start looking for affordable home insurance quotes, you need to be aware that this type of cover includes two categories – homeowners insurance and household insurance.
1. Homeowners Insurance
Homeowners insurance covers your actual property – the land, structures contained on the land and other insurable elements. In most cases, it does not cover the contents of the home although some insurance policies will cover this at an additional cost.
There are 3 factors that are important when sourcing property or homeowners insurance quotes:
– The cover should apply to the total value of your property and not only the cost of repairs or replacements that may become necessary.
– Certain restrictions are placed on the types of events that lead to an insurance claim. The less restricted the policy, the more value you are likely to get.
– The amount of your monthly premium which will be determined primarily by the amount of cover chosen and the value of your property. Some personal factors may also be taken into account such as your risk and the safety and security of the property.
You will pay an increased premium if you have no or limited security systems in place in your home. It is important to have an alarm system that includes fire and gas detection as well as early warning for intruders. The better your security system, the less you should pay for your insurance. If you upgrade your current security measures, contact your current homeowners insurance provider and find out if they will lower your premium.
A comprehensive homeowners insurance policy should provide cover for:
– Fire (including arson that was not perpetrated by the owner of the policy).
– Natural events such as wind, hail or flood damages.
– Water damage resulting from burst pipes, faulty water heater or any other plumbing mishaps.
– Termite or pest control.
– Electrical and plumbing problems.
– Damages resulting from vandalism.
– Accidental damages.
– Liability cover in the event that a third party claims expenses for injury or loss/damages of property while in your home or on your property.
The more options you choose, the higher your home insurance quotes will be. On the other hand, ensuring that you are covered for all types of loss or damages may provide you with greater value for your money in the long run.
2. Household Insurance
Household insurance covers you for the loss or damage to any contents in your home. The cost of this type of insurance is largely dependent upon the amount and value of the goods that you need coverage for. When you source home insurance quotes for contents, you may need to provide a list of all the insurable contents as well as their value.
If an item is not listed on your insurance policy, you will not be able to claim for it. It is important to update your household insurance regularly as new items are added to the home or as they are removed to ensure that they are covered and that your premium is adjusted accordingly.
You can list any type of household item for cover from the dishes in kitchen cupboards, clothing, expensive electronics and appliances to valuables such as heirlooms or works of art. Smaller items of lower value will not need to be listed individually and you will probably have to select a set amount of cover for each category.
Some household insurance policies will not require a list of goods but will base your premium on a selected amount of cover instead. For example, if you select cover for $100,000, you will not be able to claim in excess of this figure, even if the total loss are damages to your property exceed this amount.
Just like homeowners insurance, there are certain circumstances that may not be covered. It is important to be aware of these factors when you source your quotes and before you start paying your premium. Most often, restrictions for a cover are based on natural disasters or what is referred to in the insurance industry as ‘Acts of God‘.
When comparing home insurance quotes, it is important to take into consideration the amount of cover and any restrictions that may apply rather than just the cost of the policy.
Protect Your Home With The Right Homeowners Insurance Policy
Most homeowners, especially the frugal ones will take out a homeowners insurance policy for additional protection. This policy will help you cover certain costs associated with fixing your home should any damages occur or a person is injured while on your property. When we use the term homeowners insurance, we’re actually talking about two different types of coverage: liability insurance and hazard insurance.
There are a few homeowners that do see this type of an insurance policy as an unnecessary additional cost to their monthly bills. That’s all true until something actually happens and you need to deal with the financial repercussions of ignoring the importance of an insurance policy. If you’re not yet convinced you should spend money on homeowners insurance, take a look at the list of the benefits outlined below:
Protection Against Hazards
When you take out a hazard insurance policy, you’re going to be protected against a number of hazards. Whether intentionally or unintentionally, if your home has been vandalized, ravaged by storms or has become the victim of a fire, your policy will cover the cost of your house as well as its contents. The policy will either cover the cash value or the cost of replacement.
When you’re opting for a replacement, you can purchase the same items back again, hence the name replacement. However, opting for cash value can be a problem as you’re only going to be paid for what the items are worth in the eyes of the insurance company. Even if your piano cost you $20,000, the insurer is going to take into consideration its depreciating value before paying the cash.
Protection Against Potential Liability
Liability insurance may not be considered important to some homeowners, but it could be more important than you think! The fact is, if your neighbor or someone gets hurt on your property, the liability insurance coverage will make sure that the person’s medical bills are properly paid for.
This policy isn’t just useful in the case of your neighbor getting hurt, but for contractors as well. There are a million things that can go wrong and if it happens on your property, you may get sued for the medical bills. On the other hand, if you get proper coverage right from the start, you can avoid uncomfortable situations from ever taking place.
It’s A Requirement By Mortgage Companies
If you have an ongoing mortgage on your property, your mortgage company automatically requires you to purchase homeowners insurance. The reason is that the home you live in isn’t entirely yours just yet, so the mortgage company cares about it remaining in good condition.
Your mortgage company only requires you to purchase minimum coverage. However, if you have a lot of valuables, it’s worth investing a bit of extra money and getting better coverage. After all, what could it hurt to make sure your home is well protected?
Extra Special Coverage
Most of the contents of your property are covered within your policy, but there are some exceptions that are well worth mentioning. If you run an in-home office and your office equipment is damaged, your policy isn’t required to pay for the damages. Additionally, valuables such as jewelry or cash aren’t covered in a standard hazard policy.
What can you do? You can actually purchase additional specialty coverage from your insurance company for a peace of mind. For a bit of extra money, you can rest assured that your property is completely safe in all aspects.
Some Exclusions Apply
As with all types of insurance, it’s well worth mentioning that there are certain exclusions. In most states, if your home is damaged by a flood or an earthquake, your insurance policy won’t cover the costs of the damage. With that being said, once again you have the option to add an additional coverage that will protect you from these natural disasters. It’s well worth to add these to the list of coverages if you live in an area prone to flooding or earthquakes.
There are so many things that can happen to your property when you least expect it. It is under these circumstances that we advise you to invest in an ironclad policy that will protect your interests.
RachelleConcepción February 28, 2016