Homeowner’s Insurance Information

Home owners insurance

Reasons Why Homeowner’s Insurance is a Coverage All Homeowners Cannot Do Without

The largest investment that you are probably going to make is buying a home. And since your home is not just any kind of investment – it is where you and your loved ones are going to live – it only makes sense to protect it as much as you can. One way to do this is to have it insured. With a homeowner’s insurance policy, your home, its contents, and you, are covered.

Types of Coverage Packed Into a Homeowner’s Insurance Policy

Basically, a homeowner’s insurance policy is a policy that packages various types of insurance coverage into one. There are four coverage types that a typical homeowner’s policy should contain. These include coverage for the dwelling itself and its contents; coverage for personal liability; coverage for medical payment; and coverage for additional living expenses.

Property Damage Coverage

This part of the insurance helps pay for any damage to your home and your belongings. If you have exterior structures within your land, say for instance, a tool shed, a detached garage, or a green house, they can be provided with up to a 10% coverage, which is based on the amount of your overall home coverage.

Property damage coverage also includes personal properties. This part of the insurance covers personal belongings such as household furniture and clothing. In most cases, the coverage is up to 50% of the dwelling insurance coverage on your policy. Be aware though, that this coverage is only going to pay for the current cash value of your belongings that have been destroyed, unless your insurance is the replacement cost coverage.

Personal Liability Coverage

Non-vehicular accidents that occur in or outside of your home are paid for by the personal liability coverage portion of your homeowners’ policy. These accidents, which can result in damages or injuries, can be caused by your doing, a family member’s doing, or a pet’s doing. Basically, this provides you with coverage by paying not only for any damages or injuries caused to a third party, but also for the expenses that may incur because of court fees.

Medical Payment Coverage

In the event that someone other than you or a member of your family gets injured while in your home, the medical payment coverage portion of your homeowner’s insurance is going to pay for the person’s medical bills. It covers any reasonable medical expenses that have been incurred up to a year from the date of the accident. This only covers people that are not part of your household, such as guests or contractors.

Additional Living Expenses

Lastly, is the additional living expenses coverage. In the event that you and your family would have to move to another dwelling temporarily due to a peril indicated in your policy, the insurer is going to pay for the expenses you have incurred (motel or apartment fees).

What to Consider When Shopping for Homeowner’s Insurance

Now that you know more about homeowner’s insurance, the next thing you have to educate yourself about is the set of factors for consideration when shopping for one. Always keep in mind that this type of insurance policy is going to vary depending on many variables, so it is a must that you take as much time as you need in doing some research and comparison before finalizing your decision.

A single mistake on your part can already lead to overpaying an insurance company hundreds and hundreds of dollars. It can also mean that you are putting yourself, your loved ones, and your property at the risk of being underinsured.

So to help you make certain that your homeowner’s insurance policy is adequate, here are three of the most important factors to consider when buying such a product.

  1. There are Plenty to Compare

The first thing you should do when you are about to purchase a homeowner’s insurance is to compare offers. You can start off by asking your other family members, close friends, and trusted colleagues if they can recommend their own insurers.

You should also consider giving your state insurance commission a call. The National Association of Insurance Commissioners can provide you with the information you need to have an easier time making a selection from all those insurance companies in your state. Complaints are often part of the package, and the association is also going to let you know how frequent these insurers are filed complaints against.

Make sure that you also allot some of your time in checking out consumer guides, insurers, insurance agents, online insurance quote comparison services, as well as consumer threads and forums. By doing this, you are going to have a much clearer idea not only on the most highly recommended insurers, but also the price ranges you may be faced with.

  1. Raising Your Deductible

A good way to get your homeowner’s insurance policy work harder for you is to increase your deductible. Deductibles are basically the amount of money a policy holder pays for a loss, prior to the insurer paying a claim. This amount of money , depends on the terms set in the policy. What you should understand, though, is that, the greater the deductible is, the more savings you have in terms of insurance premiums.

Say for instance, the minimum deductible you have on your policy is worth $500. This, by the way, is what most insurers nowadays recommend their clients to get. If you have the means to increase this amount by twice, you have the chance to save up to 25% on your insurance premiums.

  1. Getting Your Car and Home Insurance From the Same Company

Last, but not the least, is to talk to your homeowner’s insurance agent about getting your car insurance with the same company too. There are some insurers that provide discounts to their clients, given that their clients get several policies from them. For example, if you choose to buy your car and homeowner’s insurance policy from the same company, you can get a discount ranging from 5 up to 15 percent.

 

 

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