Home Insurance Tips
Our home is an investment. Money is spent in construction, design and decoration, acquisition of furniture, and other items. It provides us with shelter, keeping us safe and secure from nature’s elements and other forms of danger.
But in the event of fires, natural disasters, theft and robbery, and other unexpected events, are we prepared? Is our home protected? This is where home insurance comes in.
A home insurance policy basically protects our home, possessions, and liabilities. It has become a necessity, especially for large estates and accident or disaster-prone areas. This usually covers the dwelling and personal property, medical payment, personal liability, and additional living expenses.
But with so many insurance companies and home insurance policies out there, how do you know that you are saying yes to the right one? To answer this question, here are some home insurance tips that you should know.
First on the list, as always, is for you to do your research. Learn about what a home insurance policy is by asking your friends or people you know. You can also check the yellow pages or search online. When gathering information, don’t just ask about the price. Ask about the quality of their service in terms of providing assistance, handling complaints, and similar questions. Get home insurance tips from them before deciding to meet with an agent.
Consider raising your deductible. Having a higher deductible rate would help you save on your premiums. Some insurance companies offer separate deductibles for selected damages, depending on where you live. So it is also worth knowing what are the prevailing conditions in the area where you live or where you intend to live.
Sticking to the same insurance company that covers your car to also cover your home insurance can get you discounts or give you lower premiums. In the same way, you can also qualify for discounts and save money when you make your home more disaster-resistant as well as improve your home security. As simple as keeping a fire extinguisher or having deadbolt locks will do.
Whenever you make new purchases or construct new buildings, take the time to review your policy’s limitations and your possessions so that you will know whether it is still part of your coverage.
Another home insurance tip that you should also not forget is to only include what you need. If you live in a tropical area then there’s no need to buy a home insurance policy that includes protection from hail or snow. Include only what you need and make sure that you choose wisely.
Carefully selecting the right home insurance policy can help you save even more. Knowing about these home insurance tips can help you protect your investment, giving you many more chances of safe and secured living.
Knowing the ABC’s of Homeowners Insurance
Just because you have insurance does not mean that you really are insured. The good thing about having insurance is that you are sharing the risk that you might encounter an accident with an institution that promises to help you financially when this happens.
The bad thing, however, is that once you do not know how you will be able to fully use your insurance, you might be left with the thinking that you are fully insured when you are actually not. You might be fine with it with little things, but when it comes to valuable things that you have insured, you might want to make sure. One of these valuable things that you would surely want to protect is your home.
Learn about all the things that you will need when you want to get the full protection for your house.
The 80 Percent Requirement
When you apply for home insurance, you have to remember a certain two-digit number, and that is 80. Why 80? Because you will need to make sure that you have at least 80 percent of the value of your house insured if you want to secure that your homeowner’s insurance will be sufficient to rebuild your home whenever the unexpected happens. This is something you should never forget to check. Make it a habit to update yourself with the value of your home, minus the property of the lot, and to check if your insurance is still enough to make 80 percent of it. It is just a very little work for a very big thing if the inevitable happens.
Actual-Cash-Value Coverage vs Full Replacement Cost
When you entered the insurance world, you might not have any idea what you are applying for. Just because it is insurance, it does not always mean it will cover whatever you have insured fully.
And sometimes, because we want to have lower insurance-related expenses, we settle with the insurance coverage that is least costly. What we do not know is that they might be cheaper because they do not insure you fully. This is why when having to choose between actual-cash-value coverage versus full replacement coverage the better option will always be the latter.
It might be a few dollars more expensive, but the amount it will be covering will be triple as much when you actually get to use it if an accident happens to your home. Think of the insurance as an investment and not a liability, so that you won’t hesitate to have money outflow related to investments.
When You Will Need Additional Coverage in a Homeowner’s Insurance
Sometimes the plain homeowner’s insurance might not be enough to make sure that you won’t have that many problems if the time of the accident happens.
You might have the best homeowner’s insurance coverage but it will all be worthless if you are not able to secure other important things as well. This is why before applying for homeowners insurance coverage, make sure that you get all the additional coverage you will need. Get it at the same time you get your insurance, for you will never know when an accident will happen and it will be better if you have had that additional insurance before it does.
Inside The House
If you are living with someone who isn’t covered by the insurance, you might want to get additional insurance for that someone. May it be a friend, a special person whom you have not yet tied the knot with but are planning to soon, or a family member who isn’t part of the coverage. There is additional coverage for their safety and you might want to check that out especially if you are planning to make that person stay with you in your home for a long period of time.
Another thing you should consider when getting additional coverage will be if you happen to operate a business inside your house. Even though the business is practically inside your home, it is a separate entity that will need separate insurance. But you also have the option to make it part of the additional coverage in your homeowner insurance. It will be a lot cheaper and you won’t have to get another insurance that might get you all confused.
Considering the Environment
The environment where your home is situated will play a very large part in the degree of the risk your home is facing. If you are in a place where a lot of calamities happen, or wherein there is a history of countless robberies, you might want to consider intensifying your insurance by getting additional coverage.
It would be better to insure yourself from all the different calamities or natural disasters you usually encounter or would most likely will in the future.
If you have the capacity, it will also be good if you get all the additional coverage related to these things since you will be able to handle the finances well. It will be better that way, especially if there are lots of valuable things in your home that you don’t want to lose in a blink of an eye.
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