Shayna A.
Home insurance has become a necessity as burglaries are on the rise and the possibility of natural disasters has increased in the last few years. These occurrences and other tragedies are not unlikely, and without insurance you may not be able to pay for damages. Damages can lower the cost of your property.
Furthermore, all home insurance policies are not created equal. Trying to save a few dollars may cause you more headache and future expenses. Choosing a good home insurance policy requires as much time and thought as buying a home. You may not see the value when calculating the differences between the cheaper and more expensive quotes; however, a good, well researched policy has the potential of saving you thousands of dollars in the future.
Searching for a good policy involves knowledge of the property. Take a look at the surroundings as well as the typical disasters that could occur and check to see if the property is in a high risk area. Is the house located in a flood or fire zone? Is the property location at risk of a hurricane or an earthquake? Depending on the specific hazard, your home should be covered according to the particular hazard zone. Even if the occurrence is rare, if you plan on keeping the house for an extended period of time, you should purchase home insurance with specific hazard protection.
What items will be covered under the policy (i.e. the monetary value)? Add up the specific value of the items you would like reimbursed if damaged, and claim them on the policy. Typically, the policy should add up to the total cost to rebuild your home and replace all of your possessions. When attempting to determine the value of your home, do not use the full amount of the appraisal. The appraisal includes the cost of the land as well as the home price. Most likely, the land will not be harmed in case of a natural disaster.
Proper research and planning will guarantee a smooth and proper selection process which adds value to having good home insurance. The better the condition of your house, the lower the premiums will be. Features such as updated locks, newer wiring and plumbing, proper fire extinguishers and smoke detectors will also keep the premiums at a lower cost. With lower basic premiums, you can add the more expensive personal items to the policy without raising the premium drastically.
There is no question about the value of a good home insurance policy. With the proper research and guidance, you can find a great policy for a good price. Don’t run after the policies for the sake of price. Choose a policy which fully supports your needs and select one based on your criteria first. When you find what you are looking for, price can then be negotiated.
Call upon the expertise of friends, family, and insurance professionals, and choose a carrier with a good reputation. Following these basic principles and doing your homework will make the selection process easy and efficient and will allow you to sleep easier knowing your property is in safe hands.
Guest post author: Shayna A.
Showing posts with label Home Insurance. Show all posts
Showing posts with label Home Insurance. Show all posts
Friday, August 13, 2010
The First-Time Buyers Guide to Homeowners Insurance
So you finally own your own home. Congratulations. The first thing you are going to need is homeowners insurance. Homeowners insurance is one of those things no one likes to talk about. You want to enjoy your new home, not talk to an insurance broker . But while homeowners insurance is one of those things none of us want to use, it’s something we all have to have as homeowners. But before you talk to that insurance broker, here are a few things you should know about homeowners insurance.
What Is Homeowners Insurance?
As the name implies, homeowners insurance protects you should something happen with your home. But it’s not quite as simple as that. As your insurance broker will explain, homeowners insurance is broken down into four components: Structure, Personal Belongings, Liability, and Living Expenses. You and your insurance broker will have to sit down and discuss each one in turn, as different families have different specific need for each type of insurance.
Structure Insurance
The structure part of your policy covers actual damage to your house. This pays for repairs should your house be damaged or destroyed by a natural disaster such as fire, hail, lightning, or hurricane. It does not cover earthquake or flood damage; these must be bought separately in areas where they are needed. Be sure your insurance broker lets you know if you have an “all ails” policy. This means that, other than earthquake and flood, all disasters that damage your home are covered unless specifically excluded. Some policies only cover what is specifically INCLUDED, which is generally not what you want.
Personal Belongings
This part of your policy protects the property inside your house, should they be stolen or destroyed. It is recommended that you purchase insurance for personal belongings equal to 50%-70% of what you purchased to insure the structure. If you have special items like jewelry that are particularly expensive to protect, you may wish to add a floater policy to protect these specific items.
Liability Protection
This insurance protects you should guests be injured on your property. You will generally need to purchase a minimum of $100,000 worth of coverage, though at least $300,000 is recommended.
Living Expenses
This coverage provides for you and your family living away from home while your home is being rebuilt if it should be destroyed or rendered unlivable. There is generally a standard premium attached to your policy for this coverage.
Be sure to sit down with your insurance broker and discuss each section of the homeowners insurance policy in turn. Families with many children may wish to purchase extra liability protection while those with antique furniture may want more personal belongings coverage. Each family has different needs, and your insurance broker can best help you decide what type of distribution of coverage is best for you and your family. Don’t forget to ask any questions you can think of, and don’t sign any policy until you feel completely comfortable with what you have purchased.
What Is Homeowners Insurance?
As the name implies, homeowners insurance protects you should something happen with your home. But it’s not quite as simple as that. As your insurance broker will explain, homeowners insurance is broken down into four components: Structure, Personal Belongings, Liability, and Living Expenses. You and your insurance broker will have to sit down and discuss each one in turn, as different families have different specific need for each type of insurance.
Structure Insurance
The structure part of your policy covers actual damage to your house. This pays for repairs should your house be damaged or destroyed by a natural disaster such as fire, hail, lightning, or hurricane. It does not cover earthquake or flood damage; these must be bought separately in areas where they are needed. Be sure your insurance broker lets you know if you have an “all ails” policy. This means that, other than earthquake and flood, all disasters that damage your home are covered unless specifically excluded. Some policies only cover what is specifically INCLUDED, which is generally not what you want.
Personal Belongings
This part of your policy protects the property inside your house, should they be stolen or destroyed. It is recommended that you purchase insurance for personal belongings equal to 50%-70% of what you purchased to insure the structure. If you have special items like jewelry that are particularly expensive to protect, you may wish to add a floater policy to protect these specific items.
Liability Protection
This insurance protects you should guests be injured on your property. You will generally need to purchase a minimum of $100,000 worth of coverage, though at least $300,000 is recommended.
Living Expenses
This coverage provides for you and your family living away from home while your home is being rebuilt if it should be destroyed or rendered unlivable. There is generally a standard premium attached to your policy for this coverage.
Be sure to sit down with your insurance broker and discuss each section of the homeowners insurance policy in turn. Families with many children may wish to purchase extra liability protection while those with antique furniture may want more personal belongings coverage. Each family has different needs, and your insurance broker can best help you decide what type of distribution of coverage is best for you and your family. Don’t forget to ask any questions you can think of, and don’t sign any policy until you feel completely comfortable with what you have purchased.
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