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Important Things For You To Know About Home Owner Insurance

Important Things For You To Know About Home Owner Insurance

Homeowners insurance can provide the coverage necessary to protect individuals from catastrophic loss of property due to events such as fire, flood, tornadoes and other natural disasters. It can also provide coverage for liability should visitors have an accident on the property or in the event the property is damaged by something other than a natural disaster.

However, not all homeowners insurance policies provide coverage for all known circumstances and as always it is important to read what the policy covers to ensure that you're fully protected in the event of something happening to you or your home. For example, if you live along river like the Mississippi and the home is in a floodplain, you may be unable to find any insurance which includes flood damage coverage. Even if you could find coverage, the cost may be so prohibitive that you would be unable to afford it.

Much like the auto insurance, homeowners insurance has deductibles which can range anywhere from $100 to $5,000. It can often be less expensive in the long run to increase the deductible on your homeowner insurance coverage to between $1,000 and $2,500 and then pay for small repairs out of pocket. The money saved from lower premiums may be greater than the out of pocket expense from replacing a broken tile in the kitchen or fixing a few shingles on the roof.

Home Insurance policies should be reviewed at a minimum of every two years to ensure adequate coverage. As home prices increase over time, homeowners often don't review their policies and in the event of something tragic happening, find they do not have adequate coverage to repair or replace the house in the event of catastrophic loss. If a $200,000 house has increased in value to $350,000 but the homeowner insurance coverage has a replacement value of $200,000 then there may not be enough money to rebuild the home in the event of a fire and the difference in material and labor costs would have to be born by the homeowner.

Home ownership is often more than just a place to sleep. Homes are used more and more for storage of personal belongings. Since individuals and families accumulate numerous items over many years is important to keep a detailed inventory of personal possessions in your records. Write down serial numbers, take multiple photographs, and even do a walk through with a video camera to ensure when a claim is made, evidence can be provided of ownership of the items in question. This not only helps in determining the cost of the items for a settlement check but it can also significantly decrease the time it takes to settle the claim.

Depending on the personal property in question you may need to add additional coverage for various items in your home. There is often a per claim limit so if you own valuable jewelry or collectibles it may require additional coverage. If there are any questions or doubt ask your home insurer directly and they will tell you whether or not your policy covers that item. If you own valuable electronics make sure your homeowner's insurance policy covers replacement value otherwise, due to depreciation, you may not receive enough in the claim to replace a high end stereo system or television.

When purchasing homeowners insurance make sure the amount you choose for your policies coverage is only for the house and the personal possessions inside the house. Do not include the price of the land because homeowners insurance policies cannot cover land cost. If you own an expensive lot in a prime location you could be paying significantly more for homeowners insurance if you do not subtract the cost of the land from the overall property value.

Other tips for getting proper coverage and appropriate discounts include specifying whether or not it is a primary residence or second property, you are a pet owner, and determining how far you live from home. You can also receive discounts by bundling home and auto insurance together through the same insurance company.

It is often the easy to forget the importance of homeowner insurance coverage because the cost is normally rolled into the monthly mortgage payment but it is important to continually review your coverage. Starting a family, adopting a dog, adding on a deck and doing other home improvements can increase the value of your home or your possible liability so be sure you have adequate homeowners insurance coverage for all that may happen in your life.