What You Must Know About Your Residence Insurance
Insurance for your residence is a very important consideration since your home is likely the biggest single invest you will ever make.
As per usual, there is some important information everyone should know when acquiring insurance for their home.
Trouble is, we're not just born with this information in our heads, someone needs to tell us.
So, here you go.
You need to shop around.
Do not buy the first homeowner's insurance you are introduced to.
It may be very fine insurance, but you won't know that for certain until you have compared it with others.
Be sure to get a minimum of three quotes.
The differences in cost from company to company may surprise you.
This is the only way to make sure you are getting the best value for your money.
Know that homeowner's insurance is actually a package three kinds of coverage.
Of course, the first covers the actual structure that is your residence.
The second is contents or property coverage.
This covers all of your property and possessions that are in your home.
The third is liability insurance.
This insurance is intended to protect your finances in case you are ever sued for an accident or damages on your property.
We'll talk more about this insurance below.
One other note in regard to your property/content insurance; some items may not be automatically covered in your policy.
Do you have any items that are especially valuable? This could include artwork, jewelry, some types of computer equipment, furs and so on.
These kinds of items may require a special rider to your policy in order to be covered.
It is worth checking with your insurance provider about.
You have a choice to make about the type of coverage you want.
Will it be cash value or replacement value coverage? The difference in the two is that when a claim is made for some loss or damage, will you receive money for the cost of replacing the property or just the amount of the cash value of the item at the time of loss? Remember, property typically depreciates in value over time.
So, cash value at time of loss will likely be much less than what it would cost to replace that item.
Cash value is coverage is less expensive, but it also pays out less (typically) in case of loss.
Now, back to liability insurance.
If there is an accident in your home or on your property resulting in injury or damage you could be held liable.
Believe it or not this even include people on your property uninvited.
Yes, even trespassers.
Again, there are two kinds of liability insurance.
The first kind is intended to cover the expense of legal defense in case you are sued for damages.
The second kind is to cover medical costs if you are held liable and medical attention was required for someone hurt or injured.
Here's one other consideration to be made, it has to do with your deductible.
The deductible is the predetermined amount of you money you will pay when a claim is made against your insurance before the company pays out any money.
The higher the amount of the deductible the cheaper your premiums will be.
Be sure though, that you have the amount of your deductible set aside in case a claim has to be made.
You may, over time, as you set money aside, be able to gradually raise the deductible and save some money.
As per usual, there is some important information everyone should know when acquiring insurance for their home.
Trouble is, we're not just born with this information in our heads, someone needs to tell us.
So, here you go.
You need to shop around.
Do not buy the first homeowner's insurance you are introduced to.
It may be very fine insurance, but you won't know that for certain until you have compared it with others.
Be sure to get a minimum of three quotes.
The differences in cost from company to company may surprise you.
This is the only way to make sure you are getting the best value for your money.
Know that homeowner's insurance is actually a package three kinds of coverage.
Of course, the first covers the actual structure that is your residence.
The second is contents or property coverage.
This covers all of your property and possessions that are in your home.
The third is liability insurance.
This insurance is intended to protect your finances in case you are ever sued for an accident or damages on your property.
We'll talk more about this insurance below.
One other note in regard to your property/content insurance; some items may not be automatically covered in your policy.
Do you have any items that are especially valuable? This could include artwork, jewelry, some types of computer equipment, furs and so on.
These kinds of items may require a special rider to your policy in order to be covered.
It is worth checking with your insurance provider about.
You have a choice to make about the type of coverage you want.
Will it be cash value or replacement value coverage? The difference in the two is that when a claim is made for some loss or damage, will you receive money for the cost of replacing the property or just the amount of the cash value of the item at the time of loss? Remember, property typically depreciates in value over time.
So, cash value at time of loss will likely be much less than what it would cost to replace that item.
Cash value is coverage is less expensive, but it also pays out less (typically) in case of loss.
Now, back to liability insurance.
If there is an accident in your home or on your property resulting in injury or damage you could be held liable.
Believe it or not this even include people on your property uninvited.
Yes, even trespassers.
Again, there are two kinds of liability insurance.
The first kind is intended to cover the expense of legal defense in case you are sued for damages.
The second kind is to cover medical costs if you are held liable and medical attention was required for someone hurt or injured.
Here's one other consideration to be made, it has to do with your deductible.
The deductible is the predetermined amount of you money you will pay when a claim is made against your insurance before the company pays out any money.
The higher the amount of the deductible the cheaper your premiums will be.
Be sure though, that you have the amount of your deductible set aside in case a claim has to be made.
You may, over time, as you set money aside, be able to gradually raise the deductible and save some money.