|
Step By Step Guide To Finding the Best Homeowners Insurance
Author David Schneider | Aug 29,2007
|
Searching for homeowners insurance can be a daunting task. Your home is a huge investment, so you definitely want the right amount of coverage to protect it. Follow these steps to make sure that you are considering the best options when finding homeowners insurance.
Before you can start comparing homeowners insurance policies, you will need to make sure that you know how much coverage you really need. Homeowners insurance policies cover three things: the physical structure of your home, your personal property inside the home, and your personal liability in case you damage other people's property.
Step 1: How much would it cost to replace your home?
To figure out how much homeowners insurance coverage is necessary, you will need to find out your home's latest assessed value. You will need enough coverage to replace your entire home in the event of a disaster. Many insurance companies will recommend covering 80 percent of your home's value, but you should probably insist on 100 percent and a higher deductible. That low deductible isn't going to do you much good if you are only allowed to claim 80 percent of your home's value and must pay the remainder out of pocket. An added bonus is that opting for the higher deductible will often save you money on the monthly premium.
When calculating the amount of coverage you need to protect your home, don't forget to subtract the assessed value of your land. You will be throwing away money every month in higher premiums if you get enough coverage to insure your land, which will still be there after a fire or other disaster.
Step 2: How much would it cost to replace all your stuff?
Create an inventory of all of your belongings. You may even want to photograph or videotape all of your valuable items and keep the pictures or video at another location to for use when filing a claim. If you have particularly valuable items in your home such as expensive jewelry or a collection of some kind - baseball cards, records, comic books, etc - you might need a separate or add-on policy to get full replacement coverage. Be sure to bring that up when talking to an insurance agent.
Step 3: Look for replacement coverage
Replacement coverage is a much better option than actual cash value coverage. Replacement homeowners insurance policies will cover the cost of actually replacing your damaged property. Actual cash value policies will only provide the current value of your items including any depreciation. If your year-old 60-inch HDTV is destroyed in a fire but you only have an actual cash value policy, you probably won't get enough claim money to buy a brand new replacement.
Step 4: Comparison shop for the best homeowners insurance quote
Don't stop after talking to one homeowners insurance agent! Call around to a few different companies and you will find that the policy prices they offer can be quite different. If you don't have time to call a bunch of insurance agents, there are a number of websites that will let you comparison shop for homeowners insurance without getting up from your desk.
Step 5: Ask for discounts
Insurance companies offer a variety of discounts when you make home safety improvements. Adding dead-bolt locks or fire-retardant roofing materials could save you money on your monthly premiums. Don't forget to ask your insurance company about what kind of discounts apply to your policy.
Step 6: Don't forget about earthquakes and floods
Earthquakes and floods are two common disasters that are not covered by homeowners insurance. You will need to get separate insurance policies in order to cover your home and personal property in the event of a flood, earthquake, landslide or mudslide. |
|
|
Print
E-mail
Del.icio.us
Digg
