When you have a mortgage on your house, then you are required to have home insurance. This requirement is mandatory, so the lender does not lose their investment fund, should something happen to the home. However, the regulation is also a great benefit to the homeowner as well. The lending institution usually determines a minimum amount of insurance that you need, however, making sure you have the correct limits set to cover fully losses is entirely your responsibility.
James Merrill Agency makes it easy for you to get home insurance policies and reviews, and we are happy to help you.
However, here are a few home insurance tips that should help you better understand what to consider:
Insure Your True Home Value
Ensure your home policy reflects the actual worth of your house. When housing prices increase over time, it is critical to check and keep your plan accurate. If something should happen to your home, and you only have it insured for the price you originally paid for it, You may not be able to replace it back the way it was. Every year you should investigate to be sure the coverage allows for the full replacement value of the house.
Understanding Your Coverage
Understanding what is and what is not covered is one of the biggest fails that happen to homeowners. Be sure to understand your policy fully. This is where it benefits to have a personal agent to explain things to you. In Arizona monsoons can sweep in and flood your yard with rain water. The hard packed ground can’t absorb the flash flood, and water may start to flood your home. Think how terrible it would be if this happened and you had to replace furniture, flooring, and drywall for your entire house and found out that your insurance doesn’t cover the flood? Be sure you know what your primary plan protects and get riders for anything you think is important.
Protect your Belongings
Most home insurance policies protect personal belongings to some extent. However, the total amount of funds that are released can be significantly lower than what would be required to repurchase everything. Also, there are some items, such as expensive jewelry that are not covered and require a separate policy or a rider.
Homeowners Insurance doesn’t need to be too complicated; you just need to take the time to review the coverages and verify the limits are set high enough to pay for the replacement. Protecting your investment is important because accidents happen every day.