Keep these guidelines in mind to ensure that your home is protected in case the unthinkable happens.
Many people look at homeowner’s insurance as a necessary evil. But the truth is that it protects one of your biggest assets—your home—from the unexpected. While the hope is that nothing ever happens, homeowner’s insurance gives you peace of mind knowing that you’re covered if the worst should come to pass.
Know the value of your home and how much insurance you need
One of the first things you’ll need to decide when shopping for homeowner’s insurance is the amount you will need. First, you’ll want to determine the actual value of your home. You’ll also want to know the cost (in today’s dollars) to replace your existing home or any portion that may be damaged. If you’re unsure, an appraiser or a homebuilder can likely give you the most accurate value of your home.
Understand ways that you can save on your homeowner’s insurance premium
While there are a variety of risk factors that can increase the cost of homeowner’s insurance, there are also factors that can help you save money on your policy. Some items that may qualify for discounts include:
- An alarm system
- Deadbolt locks on your doors
- Updated electrical wiring in your home
- Location of your home in relation to a fire department, fire hydrant or police department
- Updated heating systems
- Fire alarms and/or sprinklers
- Well maintained driveways, stairs and sidewalks to help prevent the chance of injury
Understand the risks that will determine your premium
Your insurance premium is based on the amount of risk that the insurance company is incurring by selling you the insurance policy. Factors like crime rate in your neighborhood, how close you are to busy roads and highways, your living habits and the proximity of trees on your property all play into the cost of your insurance premium.
Keep a detailed inventory of your belongings including dollar amounts
Your homeowner’s policy not only covers the structure of your home, but also your belongings. Be sure to make a list of all of your belongings and the values based on receipts and purchase dates. You can also take photos and most definitely keep receipts for any new items that are purchased.
Having this list ahead of time can be a huge timesaver in the event that something happens to your belongings. Also, be very careful about where you store this list. Think about storing it somewhere safe away from your home like a safety deposit box at your local bank.
Know what’s covered—and what’s not
Many homeowners don’t understand their coverage and are shocked to learn that something is not covered after damage has occurred. It’s important that you read your policy and ask your insurance agent or a trusted advisor any questions about areas that are not clear.
Don’t wait until something bad happens to get clear on your policy
If you are unclear about your homeowner’s policy or think you may not have sufficient coverage, contact Avante Insurance today at 305-648-7070. Our licensed insurance agents would be happy to go over your current coverage and identify any areas where your coverage may be lacking or where you may be paying too much.