Home Insurance Dos And Don’ts For Your Family
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Your home forms your castle, and you should do everything possible to protect it. That’s why having the right home insurance policy is so important. A home insurance policy can protect your home from various risks, including fire, theft, and vandalism. It can also provide financial protection if you are sued for damages caused by your home or its contents. But what dos and don’ts of home insurance should you consider? What should you keep in mind when shopping for home insurance?
Make Sure You Have Enough Coverage
The amount of coverage you need will depend on the value of your home and its contents. Be sure to estimate these values before you purchase a policy. A quick tip on estimating the value of your home: multiply the square footage by the cost per square foot in your area. As for contents, calculate the replacement value of each item.
Choose A Policy With A High Deductible
A deductible is an amount you will have to pay out of pocket before your insurance policy kicks in. A higher deductible means lower premiums, so choosing a policy with a deductible that you can afford is a good idea. A high deductible will lower your premium payments, but it will also mean you have to pay more out of pocket if you need to file a claim.
Review Your Policy Regularly
Home values and contents can change over time, so it’s important to regularly review your home insurance policy. Ensure that the coverage limits are still adequate and the deductibles are affordable.
Don’t Skimp On Coverage
It’s better to be safe than sorry about home insurance. If you don’t have enough coverage, you could have to pay for damages out of your pocket.
Consider Buying Additional Coverage For High-Value Items
If you have any items that are particularly valuable, such as jewelry or art, you may want to consider purchasing additional insurance coverage for them. Home insurance policies typically limit the coverage they provide for high-value items, so be sure to check your policy carefully.
Don’t just accept the first home insurance quote you receive. Get quotes from several insurers to ensure you’re getting the best deal. Bluemountains.com, one of many providers of renters insurance in Utah, states that by bundling your auto, home, life, and other types of insurance policies, you can benefit from the greatest savings possible.
Do Not Cancel Your Old Policy Until Your New One Is In Effect
If you cancel your old home insurance policy before your new one is in effect, you could be left without coverage if something happens to your home. Make sure that the effective date of your new policy is the same as the cancellation date of your old one.
Don’t Let Your Coverage Lapse
If you let your home insurance coverage lapse, you could be stuck paying for damages out of pocket if something happens to your home. A lapsed policy can also make it difficult to get coverage in the future. Be sure to pay your premiums on time and keep up with any changes to your policy.
Never Make Small Claims
Many home insurance policies have a deductible, the amount you must pay out of pocket before your insurer will pay a claim. If you make a small claim, you may have to pay the deductible yourself. In addition, making too many claims can cause your premiums to increase. Make sure that the cost of repair or replacement is more than the deductible before you file a claim.
Don’t Buy Home Insurance From Your Mortgage Lender
Mortgage lenders regularly require borrowers to purchase home insurance, but they may not offer the best coverage or rates. Be sure to shop around for home insurance before you select a policy.
Never Forget About Flood And Earthquake Coverage
If you live in an area prone to floods or earthquakes, purchase additional coverage for these risks. Most home insurance policies may not cover these risks, so you will need to purchase a separate policy.
Home insurance is an important part of being a homeowner. Especially when it comes to your family, you want to make sure you have enough coverage to protect your loved ones and your family’s assets. By following the dos and don’ts above, you can be sure that you are getting the best coverage for your needs. When you have questions about your policy, contact your agent or insurer. They will be happy to help you understand your coverage and what it means for you.
*This article is based on personal suggestions and/or experiences and is for informational purposes only. This should not be used as professional advice. Please consult a professional where applicable.