Insurance tips may not be one of the things that you want to read about all the time, but in the wake of the various tropic storms, hurricanes, floods, fires, and earthquakes, it is a good time. Everyone should review what their homeowner’s insurance covers and what you can expect if a disaster were to strike your own life.
After a disaster happens, it is too late to think about what you wish your homeowners, your car, or your medical insurance would cover. In this article, we are going to focus on your homeowner’s insurance.
Even though I don’t have all the coverage in the world on my own home, I don’t live in a flood prone area, I don’t have many people in and out of my home, I don’t own a dog, and I don’t have a trampoline – read on to learn a bit more!
What you are going to have to do is compare what some of the benefits are to having the insurance, which you can set different limits, or having to bite the bullet and pay out of your own pocket when something happens.
Adding riders to your insurance policy is going to raise the premiums that you pay, but in the long run, keeping your investment of your home in tip top shape is one of the most important things that you can do for your own financial future!
One thing that is important, if you can afford it is to purchase insurance that includes replacement cost, not depreciated costs. For example, if you had a kitchen fire, and your refrigerator was involved in the fire, the refrigerator was three years old the insurance company would take off xxx dollars from the cost of replacing your fridge if you didn’t have replacement cost. Replacement cost insurance can be a little more expensive, but really in the long run it is worth it in case you have a major loss.
Include living expenses on your house insurance. What this means is that if your house did burn down, if it was flooded, or if there was another problem with your home and you couldn’t live in it, the insurance company will pay for you to live somewhere else so you can still be comfortable without spending lots of money to set up house while your home is being fixed.
Find a policy that is going to pay you up front when you have a loss. If your home were to burn down, some insurance policies will only pay you after you provide them with receipts of what you have replaced. It can be costly and difficult for many homeowners to do this up front. Having the money and then making the purchases makes your life that much easier later on if a disaster should happen.
Every year you should take inventory of what is in your home and keep it in another place. You can do this with paper and pencil, writing down sizes, colors, costs etc, or you can use a video camera to do all the work for you. Keeping this information in another place besides your home will aid you tremendously in case you have a disaster or your home has been robbed.
You can keep your inventory in a lock box, in a safety deposit box at the bank or even with a friend at their home. It is easy to do and takes just a few minutes. Having an inventory saves you time later and stress about what is really missing from your home.
If you have a lot of jewelry, computer equipment, cameras, or antiques, you should have increased limits on your insurance policy to cover these items. If you do not have some types of items specifically listed on your insurance policy it can be difficult to be paid for them if something was to happen.
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