Things to know about Homeowner's Insurance
When disaster strikes, there are three important words to know- "Am I covered?"
Homeowner's insurance is a type of policy that handles losses that can occur to homes or personal possessions of a homeowner. Homeowner's insurance also covers liability insurance for accidents that could happen in or around the home.
The cost of this insurance policy varies by company and amount of coverage. There is a standard contract that lists the policy inclusions and exclusions. One of the basic requirements is that the policy owner occupies the home.
Before starting the process of choosing an insurance policy, take an inventory of all of your items and document their existence. You may use a video camera or take still pictures. It is a good idea to keep a notebook with serial numbers and receipts. Always store this information in a safety deposit box or fire proof safe.
There are many things to consider when choosing the right insurance policy as well as the company. The structure of your home and personal items are very important. So is liability. Consider the following choices before choosing homeowners insurance.
Choose the right policy
Review your insurance policy for four major areas.
Home
Possessions
Liability
Living expenses
Consider the purchase of additional insurance policies if needed. If you live in flood or earthquake zones, you may need additional insurance. Also Umbrella policies are a strong consideration for those liability issues and are relatively inexpensive at $200 -$500 per year.
Choose Replacement Cost
It is vitally important to know your home's replacement cost. Contact a local contractor for structure estimates. Consider the replacement cost of your personal items also. Watch the fine print of limits on the big-ticket items such as electronics.
Choose the Right Company
Choose the right price along with other factors
Price is only part of the equation of insurance companies. Research their record for providing claims as well as financial stability. Also review the companies claim process to verify how payments would be handled.
Choose to demand discounts.
Many consumers forget to ask for discounts and waste money each year.
Choose to be prepared.
Keep your policy updated for inflation. It is recommended that you review it yearly for lifestyle changes and additions. Remember claims can be a tedious process so be prepared in all aspects to preserve and receive all that you are entitled.
Use these information tips before choosing your homeowner's policy. The right choice is yours.
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