A good home insurance policy is vital
A cursory overview of your home insurance policy is enough to cause your eyes to glaze over, but it is an important document to understand. Although it will not win a Pulitzer Prize, it is imperative to read the fine print and ask questions about the details you do not understand.
Considering that your home is likely the single-most expensive purchase you will make, ensuring it is well protected in ANY event is vital.
Before you choose a policy, it is essential to establish your home's replacement cost should disaster strike and you need to extensive repairs or even replace your home. A local builder can help provide an estimate if you are not sure. The general recommendation is to buy enough insurance to cover 100 per cent of the replacement cost of your home.
If you have valuables such as jewelry or electronics or collectibles, it is a good idea to list them all. Take photos of these specific valuables and store in a safe place where the will not get damaged or stolen. Make sure your insurance policy covers these items as well.
Home insurance also covers your liability should any accident occur on your property, such as someone being injured or their belongings damaged while they are in your home.
Most home insurance companies include a deductible, which is the amount you must pay out when making a claim. For example, if your deductible is $500 and your claim is $1,500 for damage or theft to or from your home, then you would pay the first $500 and your insurance company would pay $1000.
You can choose to raise or lower your deductible when you purchase your insurance policy. Generally, the higher deductible you choose, the lower your monthly premiums will be. However, keep in mind that if you file a claim you will be responsible for paying more at that time.
Make sure you obtain several quotes from various companies, comparing the details of each policy. Remember that the lowest quote may not offer the best or most-suitable protection. Other points to consider when researching insurance companies; is how quick are they to respond to claims and how financially stable is the company.
It is a good idea to review your policy annually to ensure it continues to meet your needs. The cost of home insurance will vary depending on your home, your insurance company and the other factors mentioned above.
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