Home Owners Insurance – What is it? Do you need it?
Homeowner Insurance Tips
Homeowners insurance provides financial protection against disaster. In general, homeowner’s insurance covers damage to your home caused by fire, theft and certain natural disasters. If you’re buying a home you have to have it to protect yourself and savings from big surprises. In general homeowner’s insurance covers damage to your home caused by fire, theft and certain natural disaster. Flood and earthquake damage are not covered by a standard homeowner’s policy. Home maintenance related problems are the homeowners’ responsibility.
Homeowner’s insurance also protects you from liability in the event someone is injured in your home. This includes damage caused by household pets. The person falls at your home you need insurance to protect yourself.
If you are taking out a mortgage to purchase your home, most lenders require homeowners to carry an insurance policy. Until you pay off your home loan you will need homeowner insurance. The lender is technically the owner of your home, and the lender wants the property to be protected. Shop around for your homeowner insurance and compare coverage and deductibles.
Here are some Homeowner’s Insurance Tips
Consider higher deductible
The higher the deductible you choose, the lower the cost of the premium quoted. Increasing your deductible by just a few hundred dollars can make a difference in your premium. Make sure you aren’t over or under insured.
Ask about Homeowner’s insurance discounts
You may obtain lower premium if homes has smoke detectors, alarm system. People over 55 or long term customers may also be offered discounts.
Insure your home not the land under it
The land is still there after a disaster. Subtract the value of the land when deciding how much homeowner’s insurance to buy.
Check out your coverage and type of insurance now
Do not wait until you have a loss.
Purchase enough coverage to replace what is insured
To rebuild your home and replace its contents get replacement coverage. Actual cash value policy is cheaper but pays only what your property is worth at the time of loss – your cost minus depreciation for age and wear.
Ask about special insurance coverage
You may have to pay extra for computers, cameras, jewelry, art, antiques, musical instruments, collections etc.
Flood and earthquake damage is not covered by a standard homeowner’s policy. If you live in a flood prone area take advantage of the National Flood Insurance Program
If you are a renter, purchase a separate policy for renters. Do not assume your landlord carries insurance on your personal belongings.
If you are looking to buy a home, call me Karin Zeigler.
I have served the real estate needs in the South Sound for 11 years. Coming from a Military family I understand the importance of support and service required during a move and buying and selling a home. I will listen to your needs and desires and respond with honesty and integrity as well as providing my insights about the home buying and selling environment.
Contact me today:
Karin Zeigler, Real Estate Broker, RE/MAX Professionals