When you buy a home you also need to purchase homeowners insurance to protect your investment. The only problem is that home insurance policies can be very hard to understand. You not only need to know how much coverage youll require, but what types of riders you may need, how much of a deductible youll want, and what insurance company is the best one for your situation.
Homeowner insurance covers damage to your home from a variety of causes such as fire, flooding, hurricanes, vandalism, and acts of nature. It also covers you in the event you are sued by someone who was hurt on your property, and will pay your bills if the damage incurred causes you to have to move out of your home and into a hotel or motel. Not only is your home covered by your insurance policy, your personal possessions are also covered. These include your furniture, your appliances, your tools, your sports equipment, your jewelry, your electronic equipment, your CDs and DVDs, your kitchen utensils, and anything else you own that isnt part of your house.
Standard homeowners insurance may not cover you in the event you home is damaged or destroyed by floods, earthquakes, hurricanes, or tornadoes, For this kind of coverage you will probably need another insurance policy or a special rider to you current policy. If you dont get a policy or a ride for these kinds of disasters you will be responsible for all the damaged that are incurred.
In order to make sure you get reimbursed for damages to your personal possessions in the event your home is damaged or destroyed, you should take an inventory of all of yur possessions, including pictures of them. Keep this inventory either in a fireproof safe, or in a safe place outside of your home, such as a safety deposit box.
If you want to get the best possible rate on your insurance plan, there are a number of things you can do to lower your premiums. For instance you can lower your deductible. This can save you hundreds, if not thousands of dollars on your insurance, You can install security features in your home such as dead bolt locks on your doors, window locks on your windows, and a burglar alarm that notifies the police in case of a break in. You can also install safety features such as a fire extinquisher, smoke alarms, and a sprinkler system in your home.
You need to take time, at least once every few years, to review your insurance policy to make sure you have adequate coverage. You should also do a comparison check with other insurance providers to find out if you can get the same or even better coverage at a better price. If you do find a cheaper insurance policy with another company, make sure the coverage matches the coverage you currently have, check the companys rating the AMBest.com. and dont be afraid to switch policies if everything checks out.
Follow the advice above an youll not only be purchasing you home the right way, youll also be saving money in the process.
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