Subscribe Feed (RSS)If you’re shopping for a homeowners insurance, how can you possibly know if the policy you’re considering provides the coverage that you need? That’s a good question with no stock answer, but there are some things you can and should look for when shopping for coverage including:
Insure Your Home’s Value – A competent insurance agent will make sure that your home’s current value is considered when offering insurance. This means your home, your garage and related outbuildings should be covered. But, what about the land? Quite frankly, you’re paying too much insurance if your homeowners policy includes the value of your land too. Insure structures only; your land will remain even if your home burns down to the ground.
Consider Replacement Coverage – If your home was destroyed, would your insurance provide replacement coverage or does it offer actual cash value? Though cheaper, actual cash value factors in wear and tear, depreciation and other deductions, while replacement coverage will allow you to purchase new without deductions due to discounting.
Review Your Policy – How often do you review your policy? Chances are that when you receive your annual renewals, you pay the bill and file the update for safe keeping. Review your policy regularly to make certain the coverage you have today matches your current needs.
What Isn’t Recovered – Are you sure that everything in your home is covered in the event of fire, theft or what have you? Is that expensive coin collection covered? What about your jewelry? Art work? Antique furniture? Let your agent know just what sort of items that should be covered. Take photographs and track your inventory; store this information in a safe place off site just in case.
Floods and Earthquakes – Flood insurance and earthquake coverage are extras not included with homeowner policies. Only the federal government sells flood insurance at www.floodsmart.gov while earthquake insurance is sold separately by most insurance providers.
You can save money on your homeowners insurance by shopping around; through bundling your homeowners insurance with your car insurance; and by paying the annual premium all at once instead of dividing it up into monthly or quarterly payments. Also, most insurers will offer loyalty discounts if you remain with them for the long term and you can save money if you have a security system installed and operational on your property.
Adv. – Is it time for a home makeover? While a complete overhaul may be in order, you can still make subtle changes which can bring about low cost improvements. Consider purchasing new window treatments including American Blinds or Steve’s Blinds and Wallpaper to give your home a sensible, but cost effective improvement.
Tags: actual cash value, earthquake insurance, flood insurance, homeowner's insurance, insurance coverage, replacement coverage
Insurance can be one of those things you get and quickly forget about. Sure, annual premiums must still be paid, but if the rates haven’t gone up all that much over the years, you may not notice just how much your insurance coverage you really have. Then again, if you live in a Gulf state, then you probably have seen your insurance costs double, triple, and even quadruple in a few short years.
