Homeowner’s insurance is intended to help in protecting your biggest and most valuable asset. Your hard work has finally paid off and you’ve put in a great deal of time to be able to afford your home. Now you should put in as much effort to keep up with your home. Here is a short list of tips to consider before selecting your insurance provider.
- Know the Exact Value of your Home and How Much Home Insurance you Need: This is simple – find out the most accurate value of your home and assets and the cost to partially or fully repair/replace the structure and contents. Hire a professional to assess your home before you consider the cost of insuring it.
- What it Covers vs What it Doesn’t Cover: Once you have an accurate value for your home, you should compare policies from different companies. Each company will offer a give and take in terms of what is or is not covered. You should consider choosing a policy that covers events or occurrences that are likely in your local area. Water damage is a common occurrence, so be sure to pay extra attention to this area of every policy.
- Raise your Deductible: This tip is much easier for some homeowners than others because many owners are often working with a strict budget and seek relief in monthly costs. The downside to higher deductible is that the homeowner will often absorb the cost for low-to mid-level cost repairs, which usually total in the hundreds. Know your budget before applying this tip!
- Take Inventory of your Possessions and the Dollar Amounts: Compile a list of items in your home, such as furniture, appliances, electronics, and personal items with higher value. This list should be stored in a safe place (safe deposit box or secured safe), often off the premises upon which the items reside.
- Look for Multiple Policy Discounts: Many of the major insurance companies offer a discount to customers who purchase other types of insurance with the same company. Think of your automobile insurance company and find out if there is a discount for adding homeowner’s insurance.
Insuring your home may appear to be a necessary evil – until you need it. Avoid the headache of recovering from an occurrence in your home by being prepared and selecting the insurance policy that fits your lifestyle, budget, and property value.