Understanding Homeowners Insurance

Home Insurance typed out in black and bold letters on a piece of paper

Home Insurance typed out in black and bold letters on a piece of paperSafeguarding your home is critical, as it is likely one of your largest investments. Homeowners insurance protects your home, its contents, and other assets in the event of fire, theft, accidents, or other disasters.

A standard homeowners insurance policy will provide coverage for costs related to:

  • Damage to the interior and exterior of your home
  • Loss or damage to personal belongings
  • Personal liability for damage or injuries caused by you or your family
  • Hotel or house rental while your home is being repaired

An important factor to consider when selecting a homeowners policy is how much coverage you need. Your policy should cover enough to rebuild your home if it were to be destroyed completely. It may be a good idea to ask a homebuilder to walk through your home and estimate what it would cost to rebuild. You can use that figure as the basis for how much replacement coverage you would need on your home. In addition, if you have exceptionally valuable items such as art pieces or family heirlooms, you likely need to purchase additional coverage. Walk room by room and calculate how much it would cost to replace the contents of your home. Be sure to include furniture, televisions and electronics, clothing, jewelry, shoes, and other items.

Consider the location of your home. Most standard policies will cover damage to your home as a result of fire or fallen trees, but will likely not cover damage from earthquakes or floods. Homeowners living in an officially recognized high-risk area for floods are required by law to have flood insurance. To find out if your home is a flood risk, click here. Homeowners living in areas extremely susceptible to earthquakes are also often required to have extra coverage.

When deciding which insurance policy to choose, consider the deductible. Like all other types of insurance, you should opt for the highest deductible you can afford, as this will cause your insurance premium to be lower. There are also many factors that you may not be aware of that can change the cost or coverage, such as owning a trampoline or having certain breeds of dogs. Additionally, you may save on your policy if you have an alarm system.

I would be happy to refer you to someone who can give you fantastic advice on homeowners insurance. Call me today to set up an appointment!

How to Lower Your Homeowners Insurance Rate

A woman cupping a small green house

A woman cupping a small green house

Homeowners insurance protects your home and its contents in the event of disasters or theft and I work with some of the best insurance agents in the business. I am always happy to answer any questions you may have or introduce you to one of my trusted partners in business. A good insurance agent can review your needs and suggest ideas on how you can lower your insurance rate.

Here are a few ideas that may help you lower your rate:

  1. Carry multiple policies with the same provider – Insurance companies want your business and will often reward you with lower rates for carrying multiple policies with them.
  2. Increase your deductible – In many cases, you can save a large sum of money on your home insurance simply by going with a high-deductible policy. This is somewhat of a gamble because while your deductible will be more expensive if you have to pay it, the monthly fee will be cheaper.
  3. Invest in an advanced alarm system – Installing alarms that detect fire, carbon monoxide and burglary systems help to lower your home insurance premiums. Advanced alarms that report to a central location and alert first responders can lower your premium even more.
  4. Be loyal to your provider – Most insurance companies will offer you a lower rate the longer you have been with the company.
  5. Keep a good credit score – As with most forms of loans, a good credit score can also earn you a lower rate on your home insurance.

I would be happy to refer you to someone who can give you fantastic advice on homeowners insurance. Call me today to set up an appointment!