The pandemic has undeniably changed the way people buy houses. What was once safe and common sense to do – such as open houses and showings, is now something we need to do with extreme.
What You Need To Know About Home Insurance
Dated: March 22 2021
Just like it is mandatory to have car insurance when you own a car, home insurance should not be viewed as a luxury. You would be hard pressed today to find a mortgage company that doesn’t require you to have insurance coverage for the full or fair value of your property. So what exactly is included in home insurance? Here are some essential pieces of information you need to know when getting home insurance:
What Home Insurance Covers
First and foremost, it is important to know that home insurance generally covers your house itself, and not any free-standing structures on your property such as garages and sheds. You may need a separate policy or rider if you want to cover these structures on your property. While no two policies will be identical, there are some elements that are considered standard in a home insurance policy. These are:
· Damage to the interior or exterior of your house
à Natural disasters happen: fires, lightning, and hurricanes can destroy your home. With home insurance, you will be covered if the unthinkable happens. However, some things are not commonly covered such as floods, poor home maintenance and earthquakes. You might need separate riders if you want this kind of protection.
· Personal liability for damage or injuries
à This protects you from lawsuits filed by others. For example, your child, while visiting a friend, breaks an expensive vase in the friend’s house. With personal liability for damage or injuries, your home insurance allows you to file a claim to reimburse the friend.
· Hotel or house rental while your home is being rebuilt or repaired
à While this situation is very unlikely to happen, it’s always good to be prepared! In the event that a natural disaster has made your home unliveable, your insurance policy will provide you a daily limit to pay towards a hotel room, meals and other incidental costs until you are back up on your feet again.
How To Mitigate Home Insurance Costs
Everyone wants to save money – even when it comes to getting home insurance. Here are some ways to cut down on your insurance premiums:
· Maintain a security system
à Having a system that is directly tied to local police can help you save 5% or more on your home insurance premiums.
· Raise your deductible
à This is a universal truth among all insurance providers. The higher your deductible, the lower your annual premiums. It’s important to find the right balance: too high of a deductible can lead you to absorbing most of the costs that happen with your home rather than being able to file claims for them.
· Look for multiple policy discounts
à The more services you can get with a company, the more savings you can obtain. Most home insurance companies also provide car, pet, health and other various types of insurance. If you already need to purchase insurance for other things in your life, consider getting them all from one place to save on your annual premiums.
We get that there is a lot to learn when it comes to home insurance. There are many things to include and not include, and many ways to save money but also end up paying a lot. If you want a more in-depth look at home insurance policies to find what’s best suited for you and your life style, please feel free to reach out to us!