Tips for Insuring Your Home
It’s true that insuring your home seems like an obvious choice if you want to protect your most valuable asset, but there are some important considerations you should think about before going ahead with it.
If you want to avoid any unpleasant surprises later, here are tips to consider when insuring your home.
1) The value of your home
When considering home insurance, it’s important to consider the value of your home.
If you live in a nice area where there are a lot of expensive homes, you will want to insure your home with a company that offers more coverage.
However, if your home is located in an average area and isn’t particularly expensive, you may be able to save money by insuring it with a less expensive company.
Be sure to speak with your agent about how much protection you need before purchasing insurance so they can guide you on what type of policy will work best for you.
2) The age of your home
A home’s value is determined by its age and the types of features it has. Generally speaking, the older a home is the more valuable it will be.
That being said, there are many other factors that determine a home’s worth, such as how close it is to major cities or how much land is available.
If you’re thinking about buying a house and need help deciding what type of mortgage would work best for you, contact your local bank or credit union today.
They can also provide tips on any down payment requirements you might need before purchasing a new home.
The square footage: The size of your home could have a significant impact on the cost.
For example, larger homes may need to have more security features installed.
The number of bedrooms: The size and arrangement of your rooms may play a role in determining if you should get renters insurance or not.
3) The location of your home
You might not realize it, but the location of your home could make a big difference in what type of insurance you need.
For example, if you live near the water or in an area with frequent flooding, you might need flood insurance.
If you’re near a fault line or have an old chimney that’s in danger of collapsing, earthquake insurance is worth considering.
Plus there are plenty of other things to consider before buying a policy – like whether your home has a swimming pool and how many stories it is.
So read through any policy carefully before you sign on the dotted line. It can be helpful to ask yourself:
What would happen if this specific event happened?
Would I be financially able to repair or replace my home?
Can I afford the monthly payments?
Do I want some protection against theft, fire, or other disasters?
4) The type of home you have
Your home’s type will determine which types of coverage you need. For example, if your home is in a flood zone or has severe earthquake risk, you’ll want to purchase flood or earthquake insurance.
If your home is in an area with high crime rates, you might want to consider taking out a homeowners’ insurance policy that includes protection against burglary and vandalism.
Let your agent know if there are any special features on your home such as pools or spas because they may require additional safety precautions.
If you own multiple homes, do not insure all of them under the same policy! Each home needs its own coverage.
5) The occupancy of your home
The occupancy of your home is a significant factor in determining the insurance rates you will be offered. The higher the occupancy, the lower your premiums will be.
A single family home with an owner who lives there and has no other living spaces in the house will have lower premiums than a three-story mansion with five bedrooms and four bathrooms that is rented out to college students who live on each floor.
A larger property will typically have a higher premium than a smaller property because it requires more coverage.
For example, if one person falls off their roof while working on repairs and files a claim against the policy, they may end up paying $5,000 or more in damages to their roof.
If there are two people repairing the roof at the same time though, then one of them could be injured as well which would increase their liability limit from $1 million to $2 million.
6) The amount of coverage you need
You may have to make a decision about the amount of coverage you need. Here are some things to consider:
* The value of your home and what it would cost to rebuild it if it were destroyed.
What types of hazards exist in your area that could damage your home, such as flooding or wildfires?
How much will the insurance cost and how often will you have to pay?
You may want to look at both the premium (the price per month) and the deductible (the amount you must pay out-of-pocket before your insurance starts paying).
Sometimes you can get more protection by choosing higher premiums with lower deductibles.
7) The deductibles you’re willing to pay
Deductibles are different depending on the type of coverage you purchase, but it is important to know what you’re willing to pay before you buy.
For example, if your roof leaks and needs repair, your home insurance will cover the cost to fix it.
However, if the damage exceeds a certain amount of money, known as the deductible, then you are responsible for paying the difference.
For example, let’s say you have a $1,000 deductible. If the cost to replace your roof is $3,000 then you would have to pay $2,000 out of pocket.
You can also set up an automatic payment plan so that payments come from your checking account automatically when due.
8) The discounts you may be eligible for
Many people might not know that there are discounts available to homeowners. Here are some of the discounts you may be eligible for:
If your home is a historic building, you might qualify for a 10% discount. – If you have an alarm system installed in your home, chances are that you’ll get a discount on your insurance.
Another common discount is if you live near a fire station. The closer the fire station, the less expensive your home insurance will be.
But even if you don’t qualify for any of these discounts, it’s always worth asking! There are other possible discounts out there such as senior citizen or car owner’s discounts.