How to Choose the Best Home Insurance Policy?
Home insurance policies are not the same; that is a fact. There are a lot of details that must be considered. For example, if you live in a state that is not exposed to hurricanes, why would you pay to cover your home against the danger of hurricanes? This guide will help you to find the best policy that meets your needs completely without paying extra money.
1. Compare the different policies:
Each home insurance policy is unique and contain different points that vary according to a lot of factors. For example, if you live in a certain place that is exposed to natural disasters like hurricanes, consider having this point in the policy. Points like having insurance against hurricanes are specific and also there are some general points that must be included in any policy such as insurance against fires, explosions, accidents, falling objects and many other things that may cause damage to your residence. Choose the policy that includes most of the risks covered.
Don’t sign the first policy that you find suitable, search well for the best policy.
2. What is included and what is excluded in the policy:
There are some points that are mostly excluded from the policy. Damage of your house in cases of earthquakes, medical bills for injuries that happen to your family, flood, mold problems and sewage backups are the most common and here is a guide for nearly each one of them.
• If you live in an area that is exposed to floods, agree with the agent of your home insurance company to include a specific point discussing flood damage or have an insurance policy from the National Flood Insurance Program.
• Include as many as you can of your personal properties in the policy.
• Sewage backup coverage is not expensive; it will cost you about 40 dollars per year. Notice that problems that result from sewage are very expensive to repair.
• Mold coverage is higher than sewage backup coverage.
3. The price of the insurance policy:
The price is always negotiable and it varies according to what the policy will include. Listen to agents from different home insurance companies and compare what they offer. Compare the different policies together and choose the best policy for your home.
Some companies offer discounts in some cases. If you have insurance for your car and your home from the same company, you may have this discount. If you are an old client for the company, you can also have a discount.
New insurance companies always provide discounts but they are risky because they don’t have enough experience in the insurance industry.
4. in case you are not living in your place:
If you travelled abroad for some time, rented your home or just don’t live in the house anymore and moved to another place, consider telling your insurance company that your home is vacant or rented. If you didn’t tell the company, it may close the contract, cancel it or even file a lawsuit against you. Take care of this point.
This guide will help you through your search process for the best insurance policy. Try to follow it typically and read more about home insurance policies until you feel that you know everything about them then buy one. You literally will buy peace of mind and safety for your home and your family.
Top 4 Myths you should not believe about home insurance.
After making the big investment of buying a home, the next step is to buy an insurance policy to protect your investment. The thing about home insurance policies is that they need to be fully understood before buying one of them but most home owners just make a contract with an insurance company without going through all the details. That is why they may not differentiate between facts and myths about home insurance. Let’s find out the most significant myths about home insurance policies that you need to know before signing a policy.
1. All damages are covered by the insurance policy:
This is a myth. The insurance covers the most common disasters that may result in damages. So if your policy covers fires and hurricanes but it does not cover earthquakes, then in cases of earthquakes you might not be paid any money. Also the insurance covers properties like jewelry and rare personal collections. That is why you may need separate policy that covers the other properties. The insurer will tell you about that option; it is called a rider and covers any property against damage or theft.
So consider having all your properties covered and don’t just rely on the home insurance policy.
2. What is loss of use?
Loss of use is when you can’t stay at your home while the repair process. Most people think that the insurance policy will cover the accommodation until the repair process of the home is completed but the policy does not cover it in most cases. If you don’t know this point, you may end up paying thousands of dollars to rent hotel rooms or an apartment for some time. Make sure that the insurance company will include loss of use term in your contract.
3. The market value of the house is the best:
One of the most common myths regarding home insurance is that the market value insurance policy is the best. The market value policy will pay you the amount of money that you will be agreed upon in the policy. That is not the best choice because the market value of your place and properties will change over time. Imagine if you bought your home with 10000 dollars and after 10 years a hurricane damaged it and you have agreed in the policy upon 10000 dollars to be paid in this situation; this amount of money will not even buy some of your properties. The best insurance policy is the replacement cost policy; it is higher to buy than the market value but it is better. It will allow you to replace everything in the policy with their actual prices when the damage occurs.
4. The medical injuries are covered for everyone:
If an accident happens to your son and his friends in your garden, the insurance policy will cover only your son’s friends. You and your family are not included in the policy. Of course we hope complete safety to you and your family but just in case. Unpleasant events happen so you should be prepared.
These are the most common myths among people about home insurance. Understand your rights well and be prepared for the things that are not covered in the policies too. Unfortunately, life cannot be guaranteed completely.
Why you should Purchase Homeowners Insurance?
It is a big investment to buy a home so losing it due to a disaster will be terrible loss. Don’t think of purchasing home insurance as extra money that you may avoid spending; it will give you peace of mind. You may also think that the disaster will not happen; the thing about disasters that they are not predictable. Let’s find out the top reasons why you should consider buying home insurance.
1. Protection against lawsuits:
Let’s imagine a situation. Your neighbor’s kids are playing with your kids in your garden. One of them falls down and is hurt badly. The father of the kid does not like your family so he decides to file a lawsuit against you and your house. Here comes the role of home insurance. The insurance covers these kinds of accidents. The insurance company will pay to treat the injured, will pay to fix any damages happened in your property and of course will pay if the injured wanted to file a lawsuit against you. Of course we are sorry that someone got hurt in your property but we don’t want to pay a lot of money too.
2.Protection against Disasters:
Hurricanes, fires, earthquakes and many other forms of disasters that may destroy your home or at least damage it badly. When you buy home insurance, it will limit the amount of money that you will pay to fix everything. You need to make sure that the insurance company will pay enough money to cover all the damages. Some companies don’t pay enough.
Your home should be the same as before the disaster. If you have an air conditioner in every room of the house, the company should pay to install an air conditioner in every room. It is your right so make sure that it will be included in the insurance policy.
3. Protection against theft:
The home insurance policy must include a separate point in cases of theft. If one of your precious things got stolen, you may use the money to replace it. I know that valuable things are irreplaceable but at least the money can be used instead of losing everything.
The insurance policies should include a point to save your belongings in cases of theft or disasters. There are two types of coverage; Actual cash value and replacement cost. Actual cash value will make pay you the amount of money of the damaged property that you and the insurance agent will agree upon while the replacement cost will allow you to replace your property even its price is higher than when you bought it but of course the replacement policy is higher than the actual value one.
4. Your mortgage lender needs home insurance:
Most mortgage lenders like banks will ask for an insurance policy to protect your and their investment. But what if you don’t have one? Well, mortgage will provide you with a forced coverage policy. But forced coverage policies have a lot of disadvantages; they are extremely expensive and will only guarantee the rights of the lenders.
The reasons are convincing but the most important reason to buy insurance is the peace of mind. By buying home insurance, you will keep your family, home and money safe.