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June 5, 2013A Guide To Sound Testing Insulation
June 11, 2013I’m Covered…Right?
Homeowner’s insurance provides people with protection against the unexpected. You never know what may happen, which is why it is best to always be prepared. The right insurance policy will protect you from basic incidents, but what about damage related to flooding, fires, and earthquakes? Many homeowners do not thoroughly read through their policy to find out what they are actually paying for. Don’t be surprised if an insurance company rejects your infestation claims, such as termites, as it may be considered an “additional coverage” option.
Mortgage Loan Requirements
If you have a mortgage loan, you are usually required to obtain insurance. Some mortgage providers will work the policy right into your loan while others may ask you to find the insurance independently. Comparing quotes and the policy limitations is vital to selecting the best insurance provider. If you have a vehicle, contact your insurance provider and find out if they can offer you a bundle plan. This is a great way to save on the monthly premiums you will need to pay. The costs you pay in monthly premiums are based on the following criteria:
• Claim history
• Education level
• Financial history
• Job stability
• Age
• Location
While the cheapest plan may be the best financial decision on a monthly basis, there is a good chance it can come back to haunt you. Consider how much money you will need to spend if your home is damaged from a natural disaster. If you failed to pay the extra $5-$9 a month for earthquake coverage, you could lose your home and all your belongings. Always plan for the future when selecting insurance.
What Does My Policy Cover?
Most homeowners assume that insurance companies will pay for flood damage. The problem is that 
there is a fine line in each contract. Your plan may cover flooding from a natural disaster, but it may not cover flooding due to a broken pipe inside the home. However, in most cases separate flood insurance is required for coverage. Fire damage is another thing that you must research. Insurance plans usually will not pay for expenses related to fire damage due to negligence. Therefore, if you accidentally leave your curling iron on and it starts a fire, you will need to assume the costs.
Some homeowners do not realize that liability coverage is part of their insurance plan. A person who falls or is injured on your property can sue you for damages. Depending on your plan, the insurance company may step in and try to settle the case. In most situations, they will pay for medical expenses related to the injury. Make sure you are buying enough liability coverage if you have pets or a home that could be considered dangerous (due to an icy porch, etc.).
Did you know that in the event of a fire or other emergency the insurance company will pay for a hotel room? This is another area where you must read the policy as it may state that the company will only pay for a specific number of days during which your home is deemed “unlivable.”
What You Need To Know
When searching for an insurance company, find out what it would cost to replace your home. Once you know this cost, get an estimate of the assets and belongings inside the home. Now, take this figure and add $10,000-$15,000 to get the ideal coverage limit for your home. It is important to document everything that you are listing in the homeowner’s insurance policy. This will guarantee replacement or financial compensation for items that are damaged.
Homeowner’s insurance is vital for your family in the event of an emergency. Take the time to plan ahead and prepare your family for a disaster. Keep enough money in your bank account to pay the deductible and allow the insurance company to take care of fixing your home.
Guest Post By:
This article was contributed by Kelly Springwell, DIY-er, house flipper and safety nut. Kelly knows disaster can strike your home in the least expected ways, which is why she recommends New England Termite Control, quick and affordable pest control services.
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20 Comments
Knowing what your policy covers is imperative. Not all companies are the same. You don’t want to go with a company that doesn’t cover everything in phone. That can cause a problem in the event of a future emergency. http://www.beckettinsurance.com/our_specialties
KentClark1 Agreed. Homeowners should do their homework. Better safe than sorry!
As a young college student, I do not always have home insurance on my mind. However, this article has helped me realize that I need to start researching right now. I am glad to learn about taking estimates of the assets that I do posses already, because I can get a head start in estate planning. It is useful for me to know which costs I will be responsible for and which ones the insurance company will cover.
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karinabeazer Glad the article helped you think about your future and how to plan for it. Thanks for sharing!
I am currently looking for some good home insurance. We moved to the midwest and I know that there are a lot more storms here. Are there any plans that include tornado protection? We are also first time home buyers, so we are very new to this whole thing. Thanks for the article. <a href=’http://agents.allstate.com/tom-wohrley-parker-co.html’ > http://agents.allstate.com/tom-wohrley-parker-co.html</a>
Great idea about adding 10-15k on top of the cost of your home to replace things inside of it. I just bought my first home and know nothing about homeowners insurance. I appreciate the tips you provided and will use them in search of my policy.
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CaseyJones1 Congrats on your new home purchase! Glad the article was helpful! Gary
There’s so much to figure out with getting insurance I feel like. I don’t know much about what coverage we should get when we consider the cost associated with extra coverage. You mentioned in the fourth paragraph of the what the coverage covers that the policy might say that it will cover a flood, however not a flood caused by a broken pipeline. Is it worth getting full coverage to cover all possible ways of damage to your home with insurance?
http://www.cdsinsurance.com/personal
FelicitySandy Best to speak with a knowledgeable insurance agent. Full coverage will certainly cover all bases. Thanks.
I liked the part that mentioned that it doesn’t hurt to be prepared for all kinds of situations. As a homeowner, it would seem like you can never quite prepare for the things that might happen to your home. Depending on the region that you live in, those factors may change a little. However, no matter where people live, there are things that could happen to a home. It seems like something that would require an amount of preparation and research. http://floridahomeinsuranceagency.com/home/port-st-lucie/
I had no idea that it was so simple to find good insurance. It’s always been a topic that’s scared me, frankly. I never know all the factors that are supposed to go into a policy, a deductible, or a payment. Then, determining what you’re going to need ahead of time can be a tricky process as well. I’m just glad there are services to assist in those sorts of things.
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JamesSimon1 It is tricky James! Thanks for your feedback. We always recommend working with your local agent.
I like how this article brought up flood coverage. That is a prime example of a mistake homeowners often make when it comes to insurance. Homeowners should go over their policies with a fine tooth comb in order to see what they are covered for, and if there are any gaps in their insurance. This helps cut down on mishaps where homeowners think they are covered for something they actually aren’t. <a href=’http://www.preparedins.com/homeowners/’ >http://www.preparedins.com/homeowners/</a>
Gary, I’ve never thought about actually estimating what it would cost to replace my home. This could be a good way to get a specific amount of coverage for your home. that way you know that you aren’t under-insured, but you also aren’t paying for unnecessary extra insurance. http://www.preparedins.com/homeowners/
Pyrrho Glad you found the article helpful! Thanks for your feedback.
It would seem like knowing what insurance covers and what it doesn’t cover would be important. The last thing that someone would probably want is to have issues with something that isn’t covered. Thankfully there seem to be services out there that can help with insurance. http://www.coastcompins.com/coastcomp-homeowners-insurance.nxg
My husband and I are looking at buying our first home, and there is so much that we need to figure out. One of the big things is home insurance. We have never shopped for this before, so we have no idea where to start. I like what you said about figuring out your mortgage, that is very important.
http://www.idrisinsurance.com/insurance.htm
This is why it pays off to read your policy and make sure you know what’s covered! If you just assume you’re covered for flood or fire damage and then find out you aren’t, that’s a lot of money down the drain. I would want to make sure I know exactly what my policy is covering before purchasing it. It’s not fun to have to deal with emergencies all on your own. http://www.saferoadinsurance.com/homeowner-insurance/
HollieTruesdale Agree with you 100% Hollie! Thanks for stopping by! Gary
Gray, this is some great information about home insurance. I had no idea that some policies flood damage covers only natural disaster floods. While those do happen most floods happen because of broken pipes. It seems like it would be a good idea to know which type of flood is covered by your insurance. http://www.robjacksoninsurance.com/bear-river-mutual