If you’re thinking about buying a home for the first time, you’ve probably started looking at home insurance. Go into your search for homeowners insurance with this essential knowledge before making your decision and signing your name on the line.
A good home insurance plan is something that every homeowner needs. Putting in the time and effort to learn more about how you can get the best coverage for the lowest cost can be hugely beneficial in the event that damages occur. Make sure you know your plan inside and out to avoid a much more stressful experience in the future.
What Does Home Insurance Protect You From?
Not all homeowners insurance policies are the same. Knowing what is and isn’t typically covered will help you compare and evaluate various plans.
- Storm Damage
Things like lightning, windstorm, and hail damage are protected by most home insurance plans.
- Vandalism
If you’re a homeowner in a community with high crime rates, damage from riots and “malicious mischief” are often covered under vandalism.
- Fire Damage
Note that in these claims, insurance companies will probably want to investigate. There are also some circumstances that are often not covered, like fire damage resulting from an earthquake.
- Theft
In addition to covering loss and damage from a break-in, home insurance with “off-premise protection” also cover personal items that have been stolen outside the home. Often, you will receive the retail price you originally paid, called “replacement cost coverage,” and can even replace items for newer versions at the same price point.
- Freeze Damage
If a winter storm hits and it damages your home, causing pipes to burst, for example, there’s a good chance it’s covered in your plan.
- Personal Liability
Personal liability protection is one of the most important facets of many home insurance plans. Basically, it covers you financially if you or someone else injures themselves while they’re on your property. Whether it’s one of your children’s friends breaking an ankle on the diving board or a burglar cutting his hand on a window that he broke, you never want to leave yourself open to an expensive lawsuit.
- Living Expenses During Repairs
One feature that premium plans often include will be coverage of expenses like a hotel stay if your home is unlivable during repairs.
What Won’t It Protect?
There are some things that home insurance plans cover, such as the off-premise theft, that may be a good surprise to people looking to purchase. However, there are many situations and events that you may think would be covered by most plans that actually are not.
- Flood Damage
Water damage is tricky. If it’s water that coming from above, it’s usually covered. Examples might include rainwater or burst pipes. However, if it’s water coming from below, often through flooding or the sewers, it’s probably not covered. Keep this in mind when you’re considering the purchase of a home in a flood prone area.
- Earthquake Damage
Even though 90 percent of the American population lives in an earthquake-vulnerable area, this is one natural disaster that home insurance plans tend to skip.
- Neglect
Home insurance plans won’t cover your home if it falls apart due to neglect. If you don’t perform reasonable maintenance on things like your roof, don’t expect your insurance company to do so either.
- Mass Power Failure
Any damage resulting from mass power failure around town is not generally covered. While typically this won’t cause many long-term problems for the average homeowner, it can in special circumstances. If you’re worried about it, a back-up generator is a smart investment.
- Intentional Loss
This should be obvious, but insurance policies will not cover expenses if you’ve damaged your home or property intentionally.
- War Damage
While this hasn’t been much of a problem in the modern era of America, it’s still one thing that most plans will not include. In the event of a wartime disaster, such as a bombing, property isn’t protected.
- Changes In Building Codes
Sometimes local codes will change and you’ll have to remodel or repair your house accordingly to keep it legal. For example, the city might say you need a safer or more efficient type of wiring. In instances like this, home insurance will leave you on your own.
How To Get And Keep A Low Home Insurance Rate
- Keep your home secure. Things like deadbolts and alarm systems tend to lower your risk of falling victim to theft, and lower your insurance rate in the process.
- Keep your home structurally safe. Don’t let your home fall into decay. If things become hazardous, your insurance is likely to shoot way up. Results can be similar if risky features like hot tubs, trampolines, and pools are present on the property, simply due to increased liability. If you’re dead set on having something that can be dangerous in your backyard, a sturdy fence is usually a good way to have the best of both worlds.
- Try to bundle. If your insurance company offers other types of insurance, consider trying to consolidate. A lot of the time, an insurance company will offer special deals when you use more than one of their products.
- Raise the deductible. If chances are low you’ll need to use your policy for minor instances, one smart way to lower your annual home insurance costs is by increasing your deductible. While this means you’ll have to pay more if something does occur, if you’re feeling lucky, it means you’ll be paying less in the meantime.
- Keep a good credit score. If you have a solid credit history, you’ll probably get a bit of a break from insurance companies. In order to keep your credit score favorable, try to keep your credit balances low and never miss bills and other payments.
Other Tips And Tricks
- Don’t wait. If you notice damage, file a claim immediately. Not only will this get the process rolling, it will also help you avoid missing the window in which insurance companies allow you to report an incident.
- Take an inventory. If you expect your personal belongings to be covered during theft, make sure you know exactly what you’ve got. Take pictures of expensive items and make lists. This can help you avoid headaches if something happens down the road.
- Keep your receipts. Know exactly how much you paid for big ticket items. This can help ensure that you get the most amount of money possible back whenever you have to report it stolen or damaged.
- Shop around. This can be time consuming, but it can save you a ton of money in the long run. By doing thorough research both online and offline with regards to what insurance company has the best plan for you, you’ll have a better chance at finding better coverage for a lower price.
Like This Post? You’ll Definitely Love These:
