If you’ve never purchased home insurance before, you might not know what to look for in a home insurance policy. There’s a lot to look for when it comes to buying a home insurance policy. Here’s what you should consider when choosing a home insurance policy so that you can ensure your biggest asset is properly protected.
Your basic insurance policy should always cover:
Damage to Your House
Your home insurance policy should always cover damage to the inside and outside of your house. This also includes your possessions, so make sure you document them. Your insurance should cover damage from
– Fire/lightning
– Smoke
– Theft
– Vandalism
– Windstorms
– Hail
– Vehicular damage
– Ice, snow, and sleet weight
– Household systems freezing
– Riots
– Explosions
– Falling objects
– Volcanic eruptions
Personal Liability
Most homeowners know that homeowner’s insurance covers personal liability, which is the slip-and-fall protection. Experts suggest that homeowners purchase a ‘million-dollar umbrella’ in addition to their homeowner’s policy, which will cover home and auto; it’s also not very expensive.
Additional Living Expenses
Your homeowner’s policy should always cover additional living expenses, which will compensate you if you find yourself in a situation where you have to live outside of your home while it’s being repaired or rebuilt.
Level of Coverage
When you choose a policy, you should have three options to pick from: cash value, replacement cost, or extended replacement cost.
When you go with the cash value option, you will be reimbursed for the actual cash value of your home as well as possessions. Remember that the insurance company will reduce the value to some extent, accounting for depreciation, depending on the age of your house and the contents inside. The replacement cost option will reimburse you for the cost of replacing everything. This is probably the option you want to choose so that you can rebuild if the worst happens.
Discounts
Once you’ve chosen an insurance provider, it never hurts to enquire about ways to secure discounts and save yourself some money. For instance, some homeowner’s policies will help you save some money if you have a security system installed in your home.
