How To Find A Good Homeowners Insurance Policy
Good homeowners insurance is worth shopping around for. Not only do you get a good price, but also you can make sure your house investment is adequately backed by the strongest coverage possible. Here s how your homeowner’s insurance should contain:
Truly comprehensive coverage. This means that you should be protected against floods, fires, hail storms, hurricanes, and other disasters. You will want to include coverage for damage due to smoke, fire, or water. Some insurance policies also offer umbrella liability protection. Umbrella coverage comes in very handy when you have an expensive piece of artwork stolen from your dwelling.
Windstorm protection. When storms threaten your home, you want to make sure your windstorm protection goes beyond just making sure power lines are out of the way. You also need to make sure you have adequate windstorm coverage in place to protect your dwelling. The cost of windstorm damage can run into thousands of dollars, even if your house remains structurally intact. Make sure you have flood insurance as well for this coverage.
Personal property protection. Whether it s through your rental agreement or not, your insurance should provide you with personal property coverage. This is basically where your stuff goes after you pass away, and you want to make sure that you have enough money to replace everything.
Some insurance companies lump personal property with dwelling coverage because they assume you will need it. But that is not necessarily the case. If you have a mortgage, it is possible that the lender has stipulated you have to have personal property coverage. So you need to ask. If not, you probably want to skip the HO-4 and go with the HO-3 instead.
HO-3 means that you have 3 levels of protection. Your personal property insurance provides protection from disasters, like fire, smoke, or floods. HO-3 will also protect against damage caused by vandalism, theft, or malicious mischief. You will probably also be covered by your dwelling insurance should the property be destroyed or damaged for some other reason.
The Better Business Bureau. Your homeowners’ insurance company should be able to provide you with the names of the homeowners’ underwriters that they work with. The Better Business Bureau keeps track of this information so you know who will be paying out on a regular basis to ensure that companies with questionable records are not on your policy.
You can always shop around, though you might not find all of the coverage you need. Remember that the cheapest homeowner’s policy is not necessarily the best choice for you. In fact, in some cases, paying just a little bit more may actually save you money in the long run. Paying slightly more for a decent home insurance policy doesn’t mean that it has to include coverage you don’t really need, and it doesn’t mean that it has to involve working with a local agent in your area. A good home insurance policy is the one that is right for you, tailored to meet your particular needs.
You can often get discounts through amica mutual and other discount insurance agencies by showing that you are a good homeowner. To show your ability to take care of your home adequately, you might consider raising your deductible. When you raise your deductible, the insurance company should pay the difference out of pocket before the insured makes a claim. If you raise your deductible, you can usually get a good discount on your home insurance coverage.
Some people choose to get coverage options that come from their place of employment. This may include benefits packages offered through their employer. In many cases, the benefit packages offered by your place of employment may be cheaper than those offered through other sources. This is another good reason to raise your deductible. Remember that raising your deductible may lower your overall premiums, but you have to pay that deductible ahead of time. The good news is that your insurance policy will still provide coverage even if the amount of the deductible is a lot higher than the amount of money that would be paid out in the event of a covered loss.
Most homeowners’ insurance plans also have some kind of co-payment option for dental or eye care. You don’t want to pay an extremely high co-pay for care that will likely be unnecessary. However, there are some plans that have a high deductible but will allow you to choose the portion of the care that will be paid for by paying a higher deductible. You have the choice of paying the deductible as much as you want or choosing a larger co-pay.
These are just a few ways to find a good homeowner’s insurance policy. In general, it’s best to err on the side of caution when it comes to making financial decisions. Making financial decisions on a weekly basis is difficult, and it will take a lot of research to find the right plan. We recommend that you consult with a local insurance agent for a monthly policy review, as this will help you make better informed decisions regarding your personal needs and circumstances.