When you are buying a home there are so many things to consider and think about. One item is your home insurance. Some people may know a lot about their home insurance but others may feel left in the dark. Below are some home insurance basics to help you educate yourself on the basics of this topic.
Home Insurance is purchased when you own a home. This type of insurance covers you and your home for different things based upon what coverage you elect. Each insurance company offers different types of coverage options that can be explored. Most home insurance covers five basic areas. Dwelling coverage is coverage available to cover your actual house, your dwelling. Other property insurance covers structures on your property that aren’t attached to your home. Other property includes a detached garage, a shed, or a fence. Personal property coverage is the coverage for your actual property inside of your home. Liability Coverage is coverage that protects you and your family in the event a visitor is harmed in your home or property. This would be helpful in the event they try to sue you. Additional Living Expenses is what covers you in case your home in uninhabitable and you need to live elsewhere. It is important to compare home insurance quotes and make sure they include these basics. It is also important to explore what your policy does not cover.
Similar to other insurance types, home insurance offers discounts to consumers for different reasons. You may be able to get a discount if you hold multiple policies with the same company. For example, if you have your home, auto, and business insurance with the same company. You may also be able to get a discount if you have a claims free history. To insurance companies, if you haven’t had a claim recently than you are likely to continue that in the future. They may offer discounts if you have a security system to keep your house safe or other items to them lessen the risk of claims. Automatic Payment is also an option that offers discounts with most companies because it allows them to pull your premium directly. These are just a few examples of potential discount opportunities, make sure to ask your insurance representative.
The deductible is what you have to pay for repairs if your insurance company approves your claim. It’s your share of the repair cost. The higher the deductible, the lower the insurance premiums. If you have a $500 deductible, you’re going to pay more on your premiums than if you have a $2,000 deductible. This is something you need to discuss with your family to see what would best meet your needs.
There are many companies available to purchase home insurance through. It is important to do your research and buy your insurance through a trusted insurer. The last thing you need is to actually file a claim and have your insurance company not be able to fulfill that claim. They need to be reputable and reliable.
After reviewing these basics be sure to asses what it is you need when it comes to home insurance and do your research. It is very important to shop around and get multiple quotes because all companies offer different rates.