A Complete Guide to Home Insurance
Once you have purchased and finally own your dream home, the next step in making it a good investment is to purchase and apply for home insurance. Homeowners insurance covers loss or other damage to the home, household goods, and use of the home. It may also include liability insurance to cover accidents within the limits specified in the policy.
What is Homes Insurance?
Homeowners insurance, also called Homeowners Insurance, is a type of property insurance that covers all type of personal property and home. Home insurance depends on several factors that must be considered when applying for this insurance to determine if the current homeowner meets various qualifications.
Why is it important?
As stated in the policy, homeowners insurance covers all loss or damage that may occur in the home or on the premises. In the event of fire, tornado, storm, burglary, earthquake, flood, or other related disasters or accidents, HOI will also cover all possible and necessary repairs and damages. In many cases, mortgage companies require current owners planning to purchase or refinance a new home to obtain an HOI before making a loan to ensure that the person will be able to repay the debt, even after such loss or damage.
How do I apply for an HOI?
Applying for Homeowners Insurance is like buying a new home. In some ways, it can be a daunting task for the individual without good guidance. However, if one is well versed in identifying and purchasing homeowners insurance, it can be an easy task.
According to a survey conducted in the United States four years ago, about 64% of American households were under-insured in 2008. In other words, these American families do not have enough insurance to cover or fully replace property damage or loss in the event of a catastrophe or accident.
So how can we get homeowners insurance right?
1. choose the right policy.
Start by finding the right insurance company for your home. It is like buying the best clothes for a special occasion. Do your research and talk to different insurance companies. Learn about their policiy and how they can protect and insure your home. You can review their insurance plans and insure your home the way you think it should be insured.
What to look for in an insurance company
- Proceed with the process with the help of an independent agent.
- Research the types of insurance company.
- Get quotes from different insurance companies and compare their policies and rates.
2. Determine insurance coverage
Knowing what is covered will help you know what to expect from your insurance company in the event of loss or damage to your property. Be sure to check your insurance policy to make sure that all necessary contracts are listed on the policy.
What you need to determine what the HOA will cover and what it will not cover
- Familiarise yourself with the basics of homeowners and other types of insurance.
- Ask questions of an independent agent.
- Always be wary of warranties, quotes, and offers presented by insurance companies. Some are good and some are true.
3. Ask About Government Homeowner Assistance
The great thing about homeownership is that local governments work with HUD to offer programs to assist homeowners who have problems with their property or possessions, such as foreclosure. In addition to homeowners insurance, local government homeowner assistance programs provide additional benefits to homeowners, especially in the event of certain natural disasters such as floods, earthquakes, and hurricanes.
How much experience do you have with home insurance?
Use this simple checklist to explore and evaluate potential premium discounts. It is also the knowledge you and your insurance agent need to lower rates and save money.
- Don’t overlook the most common discount, the multiple policy discount.
- In addition, Insuring your home and car with the same company can reduce your total premium by 10-15%.
- Also, check with your insurance agent for possible discounts before installing a new roof on your home.
- If you have a flat roof without a roof warranty, you may lose your current coverage, so talk to your insurance agent if you want to save money.
Become a New Policyholder
So, you may find that additional savings are available to new policyholders under new pricing models that offer “sign-up discounts.” If your insurance company offers these discounts, your insurance agent can help you receive them by signing up for a new policy with the same company.
Ask your broker about discounts for risk mitigation due to various internal and external factors such as fire alarms, chimneys, flue safety, heating systems, burglar alarms, curbs and gutters, and landscaping. The same also applies to proximity to fire hydrants and municipal fire stations.
Preventive Maintenance and Home Security
- Ask your insurance agent about alarm systems and precautions you are taking to protect your property and keep your home safe.
- Discount rates vary, but a comprehensive system that include two or more measure can save you 10% to 15%.
- Deadbolt locks, garage or warehouse locks, fire alarms, sprinkler systems, fire extinguishers, burglar alarms and home security systems.
Good breeding goes bad
- Like it or not, there are notorious pets.
- You may love your pet, but if Fido belongs to a breed that is considered a biter or a danger.
- So, it could affect your insurance rating or undermine your coverage.
- Choose your pet wisely. Remember, these small issues can turn your insurance into a big problem.
- Expect credit cards to affect your home insurance premiums.
- So, if you are married, you can lower your premiums by putting your higher credit score first when applying to insurance companies.
- If you have a poor credit history, but it has recently improved, you should tell the insurance company.
- Premium Adjustments: It may be possible to lower your premium rate without having to purchase a new policy.
Lily Poole is a Property and Home Insurance New York, officer by profession. She is pretty well experienced in the insurance and accounting field and has an impressive profile in the training and development industry.