Homeowner’s insurance protects you against the loss of personal property and possessions. Homeowners are required to have this kind of insurance before getting a home loan. However, there is more to consider than just the cost of coverage when buying homeowner’s insurance.
Look for "replacement cost" homeowner’s insurance, if available. Such a policy will help you guard against inflation. Based on depreciation of the property and index of inflation, insurers often assess the amount of replacement cost. However, there are other factors. Some companies set limits on total amount covered instead of total replacement. Ask in detail about such homeowner’s insurance coverage.
Calculate the amount of coverage you need to cover your home and its contents. Don’t consider the value of land when calculating the value of your homeowner’s insurance, as it is not covered by your homeowner’s policy. Take photographs of your belongings, each room of your home and its exterior and store these in a safe deposit box in case you ever need prove values when using your homeowner’s insurance.
Ask your friends, family and business associates about their insurance. Look in the Yellow Pages and contact insurance agents. Request quotes. Go online, visit Web sites of different insurance companies and request quotes. Check consumer guides and read reviews from customers of different insurance companies.
Find out if companies offer any discounts on homeowner’s insurance. The types and extent of discounts vary. Age of the homeowner, people living in the home, employment status and locality can determine the amount and type of discount offered.
Opt for combo homeowner’s insurance policies if available. All real property such as cars, boats and computers can be covered under more than one kind of policy. Ask your company if it provides such combinations. Your premium will be lower. Consider opting for a premium within your budget of monthly disposable income.
Ask about the deductibles under the homeowner’s policy. (Deductibles are the amount you pay toward a loss before your insurance company starts to pay a claim). Typically, the higher your deductible, the more money you can save on your homeowner’s insurance premiums. Amounts of $250 to $300 is the standard deductible. Offer to pay a higher deductible if it can help you lower your insurance premium.
If you are ineligible or denied insurance coverage try the FAIR (Fair Access to Insurance Requirements) plan. Companies may not offer you cover for expensive or rare valuables such as antique woodwork or paintings. Be sure to get add-on coverage for these valuables.
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