November 22nd, 2013
You need it
No one expects something to happen to their home, but unexpected things can happen, which is why every homeowner should get some coverage to protect their investment. Whether its from theft, weather or fire, homeowners insurance can help you recover and avoid a financial disaster.
Types of coverage
There are different types of coverage that you can purchase to protect your home and your possessions. How much you need will depend on the value of the things that you own and how much you would be able to replace on your own. Think about everything that you possess. If you were to lose it all from a fire, could you replace it without any help?
When you buy homeowners insurance, you can get coverage for either a cost replacement of your possessions or the actual cash value of the items that were lost or damaged. The cost replacement would provide you with the amount that it would take to replace all of the items that were lost. The cash value is different in that it is simply the cost of the items when you bought them. So, for something that you bought a long time ago that has since appreciated in value, the cash value might not be able to buy you the same item.
It is possible to get a lower rate on your homeowners insurance depending on how much coverage you purchase. In addition, you might be eligible for discounts if your home has been recently renovated or updated with modern safety features like new wiring. Check for these discounts when you purchase a policy, and review them every year to see if you qualify for more money-saving opportunities. When you purchase a new home, you might automatically be qualified for a discount. If you bundle your insurance policies together from the same provider for your home and car, you might be able to cut down the cost compared to if you purchased them separately.
One of the most important things to do when buying homeowners insurance is to shop around. Take a little time to browse different policies and prices to find one that suits your needs and protects your home. While shopping, be sure to read through policies carefully, as they can vary between companies.