More than likely your mortgage company requires that you carry some sort of homeowners insurance. Now you want to find out what you should be looking for in a home insurance policy. We outlined some of the things we believe you should look into when considering a homeowners insurance policy.
Make sure you can cover rental expenses
Repairing a home can take a long time. Expenses when you are not at home can start to add up. Look into a loss-of-use clause which will cover living expenses over and usually above your normal living costs. The majority of insurers cap this at around 20 percent of the homes coverage. Although, there are some insurance companies that will allow you to purchase more.
Be sure you can rebuild your house
If you decide to purchase a cash-value homeowners insurance policy you may only be covered for the depreciated value of your home and your belongings within the home. You may want to look into a guaranteed replacement clause if you do not believe the depreciated value will cover you. This clause will cover the cost of rebuilding the home. The majority of home insurance companies have a cap of 120 to 150% of the value of the home.
Make sure your personal property is protected
The way your valuables inside the home are calculated with regards to home insurance coverage is usually based off a percentage of the home value. Usually this percentage is around 50%. Personal belongings like electronics, jewelry, art collection, and things of that nature are for the most part subject to replacement limits typically around $1,500 to $2,500 per item. A personal property rider is always something to consider.
Make sure you have enough home insurance coverage
There is a good chance you will need more coverage than what the standard homeowners insurance policy provides. If there is any reason at all that you may be open to a lawsuit look into coverage that can protect you. If you own a dog there is always the chance the dog can bite a neighbor or if you own a home based business you are always open to claims. Make sure you are covered for the amount that will cover your property.
Ready yourself to pay for additional coverage for things you may have thought were covered under a standard policy
The average homeowner may think earthquake and flood insurance are covered under a standard homeowners insurance policy. Unfortunately these are additional coverages you will have to add on to your standard homeowners insurance policy. Depending on the area you live in it would be wise to contact an insurance agent and see if any extra coverage would be necessary for your situation.
[click here to contact an agent]
Know the details of when you’re covered
Often times a renter may think they are covered under the homeowners insurance policy. Unfortunately this is not true. As a renter you would need to purchase your own personal renters insurance policy to have coverage for your belongings. Renters insurance is typically pretty inexpensive and getting a renters insurance policy can save you a ton of headaches.
Look for homeowners insurance discounts
It is always a wise idea to look for price breaks and discounts on your homeowners insurance rates. Security systems and added home protect can sometimes help you to secure lower rates, all the way up to 20%. Other alarm systems like smoke alarms and deadbolts can also help to lower your premium in some cases. Our favorite way to help you save money on your homeowners insurance policy is to bundle it with your auto insurance. Not only does it make it more convenient to pay your bill every month but this is a great way to save money as well.
How to look for a homeowners insurance policy
Contact a few different homeowners insurance companies or have a reputable insurance broker do the shopping for you. You’re going to want to know what your options are and the easiest way to do that is with a few different quotes. The easiest way to go about this is by contacting a trustworthy local insurance broker like Eugene C Yates Insurance Agency.
The agents at Eugene C Yates can help you shop with multiple homeowners insurance companies so you can select what is best for you and your family. What’s great about going through them is they have access to some of the best homeowners insurance companies in the industry.
This allows them to give their clients the most competitive homeowners insurance rates on the market. In addition to the great rates, awesome customer service and top quality homeowners insurance policies, they’re nice people and they make buying homeowners insurance easy. All you have to do is give them a call!
Always make sure you are getting homeowners insurance coverage that will cover what you value most. Please make sure you look into the level of coverage you need. And do your best to avoid paying more than you may need to. Some of the most common levels of coverage are as follows;
HO-2; This is a broad policy that will protect you from 16 perils that are stated within the homeowners insurance policy.
HO-3; An even broader policy that is designed to protect you against all perils, with exception to anything specifically excluded from the homeowners insurance policy.
HO-5; This is a premium homeowners insurance policy that will protect newer and well maintained houses. It will also cover you against all perils, with exception to anything specifically stated within the homeowners insurance policy.
HO-6; This is homeowners insurance for co-ops and condos. It will cover you for personal property, liability, and most improvements to the owners unit. In terms of the coverage of the structure, this is usually through the association.
HO-7; This policy is very much the same as an HO-3 policy but specifically for mobile homes.
HO-8; This is a homeowners insurance policy that is designed for older homes. It is very similar to an HO-2 policy. Although, it typically only covers the actual cash value.
In conclusion, there is a lot to know and even more information to go through. Like I said before the easiest way to get all of this taken care of is to contact a 5 star rated insurance agency like Eugene C Yates Insurance Agency. Great homeowners insurance rates made easy. What more can you ask for. Give them a call today.