SelidikiNews.com – Your home is without a doubt your most valuable investment. What if a natural disaster or fire occurs in your house, and your house is destroyed?! Disaster can strike without information and that’s why protecting your home with home insurance is so important. Then, are there any tips on choosing home insurance?
A standard home insurance policy covers your home and its belongings, as well as third party liability. Buying home insurance isn’t required by law, but protecting your largest investment is an absolute must in the event of an accident.
Here are some top tips that can be very useful when you are choosing home insurance.
Tips for Choosing Home Insurance
Choose your coverage
There are different types of home insurance policies. Most mortgage companies will require you to have a replacement cost policy, which will pay to repair or rebuild your home based on current construction costs. There is also an actual cash value policy that pays to repair or rebuild your home, minus depreciation.
Select the coverage amount
Make sure you have enough coverage to replace your housing if it is destroyed. Your agent can help you determine how much it will cost to rebuild your home. You also want to make sure you have sufficient coverage for your personal property. You can use our home inventory checklist or search for a home inventory app. There are several free options available, including one from the National Association of Insurance Commissioners.
Look at company records
A good way to judge a company’s customer service is to look at its complaint record.
Get some price quotes
Use TDI HelpInsure to get sample rates and compare policies.
Once you’ve narrowed your search, call your top picks for a quote.
Choose a deductible
The deductible is the amount you have to pay before the insurance company pays. The higher your deductible, the lower your premium. If the policy has a deductible that is a percentage, make sure you know how that translates to a dollar amount.
Ask about discounts
Most companies offer a discount if you reduce possible losses. Typical discounts include owning an alarm system, owning a fire alarm or sprinkler system, having other policies with the same company, and being claim-free for three consecutive years.
Check company license
Once you’ve decided on a company, check to make sure the licenses are up to date.
Avoid gaps in coverage
Never cancel a policy until you get a new policy or a written statement proving you have coverage.
Depending on where you live and what you’re insured for, you may need more coverage.
Flood insurance. Home insurance policies do not cover flood damage. If your property is in a flood zone, your lender will require you to have flood insurance. But don’t rule out flood insurance just because it isn’t needed. More than 20% of flood claims occur outside the flood zone.
Storm and hail insurance. If you live on the Texas coast or in Harris County in Galveston Bay, your home insurance policy will not cover storm and hail damage. The Texas Windstorm Insurance Association sells hurricane and hail coverage to residents of coastal Texas.
Extra coverage. You can get extra protection for your jewelry, fine art, electronics or other expensive items. You can also purchase coverage for damage caused by back-up sewers or drains, mold, and leaks from your plumbing, heating, or air conditioning systems.
Insurance. If you want more coverage than a home insurance policy, you can buy a separate umbrella policy. Make sure the agent or company explains coverage because policies vary.
So after knowing the tips for choosing home insurance, check out other interesting news on SelidikiNews.com, it’s time to revolutionize reporting!