Home and Contents Insurance
There’s so much to learn about home and contents insurance it’s impossible to educate people not in the insurance industry in a short timeframe. Most people spend very little time going over their home and contents insurance other than taking the advice of their agent, asking a few questions, and signing on the dotted line. Agents are knowledgeable and understand the process, so most families trust their home and contents insurance agent will help them get through the process with ease. Of course, that leaves families confused when it’s time to renew their policy or file a claim. It’s a lot of information to process, but there are a few excellent pieces of information all homeowners must understand that make the process simpler.
Get Good Replacement Coverage
A simple reminder for any homeowners looking at home and contents insurance is to choose a replacement coverage amount that covers the value of the home. You might not have a big mortgage on your expensive home, but you shouldn’t undervalue the home or you risk not being able to replace it if a fire or other disaster destroys it. The owed value on the home is not the actual value of the home. Look into the market, find out what homes with the same features, size, property, and other upgrades as yours costs. That’s what it will cost you to buy a new home or rebuild the one you have, and it should serve as a great starting point for choosing replacement coverage.
Find the Value of Your Belongings
If your grandmother left you her beautiful diamond necklace that’s been passed from generation to generation for centuries, it’s probably very valuable. Now is a good time to have it appraised so you can insure that necklace for its actual value. It’s not replaceable by any means if something were to happen to it, but you deserve to have the value of the necklace paid to you if something happens to it. The same goes for any artwork, other jewelry, and even antiques you have in the home. Know what they’re worth, and insure them for that amount.
Find Additional Coverage
Your standard Youi home and contents insurance policy covers damage to your home caused by a fire or even a tree that falls on top of it, but it’s not going to protect you from earthquakes, flood damage, and even other natural disasters. Now is the time to find additional coverage for your home and contents insurance policy so your home is fully covered. Depending upon where you reside, your mortgage company might require specific types of insurance to protect their own interest in your home. These riders raise insurance premiums, but they protect against the worst.
Choose Liability Insurance
Home and contents insurance policies come with many coverage, riders, and additions. One is liability coverage. It’s imperative if you want to protect your finances when you have guests. Accidents happen all the time, and they can happen in the home. Anyone who visits your home with an invitation, to solicit their products, to work on the home, or just to check it out when it’s listed for sale is a guest. If they are injured on your property, they can sue you for the cost of their medical bills. You want liability coverage to protect you from being personally sued. This helps the injured party seek financial support for their recovery, but protects you from being the one to pay it to the p arty injured.
Ask for Inflation Guard
All home and contents insurance policies should have an inflation guard (sometimes called a different name depending on where you live and what insurance company you utilize) to protect you financially in case of disaster. Over the years, your home’s value changes. If the housing market increases significantly, inflation occurs, or anything else changes, your home’s value might increase significantly. This rider protects your home if the value is far more now than it was when you originally purchased your policy.
Not Everyone is Easy to Insure
Few families run into problems finding home and contents insurance on specific properties. Their applications are denied if the property has a specific issue. A good example is a home that sits on the side of a beautiful mountain or hill prone to mudslides in the rainy season. Insurance companies don’t want to pay out the damages to a home and contents insurance policy on a home that requires a rebuild or major repair every year or so. The federal government offers insurance programs to those who can’t find insurance in their state.
Finding insurance to cover your home and belongings is one of the most important decisions a homeowner makes in their adult life. The process should take more than a few moments based on the potential financial implications if disaster strikes. Protecting your home starts with educating yourself on the process from start to finish so your home is fully covered, and you understand the process of working with your insurance agent.