Many of us are guilty of looking at homeowner’s insurance as a ‘one and done’ sort of thing. You make the purchase, get the insurance, and then that’s it…you’re insured. No reason to think about it again, right? Wrong! As time goes by, the typical homeowner invests a lot of money into their home. New carpeting, a new water heater, and upgrading appliances are among so many other things that increase the value of your home. When your money invested increases, you want to make sure that your policy covers all these upgrades.
Take an inventory of the things in your home that are valuable and that you would want to replace if stolen or destroyed. Once you have your list, make sure that your policy would cover these things. If anything were to happen to your home, it would be difficult enough trying to replace anything of monetary value, let alone the emotional difficulty it would take to overcome losing the irreplaceable things with sentimental value. Don’t get caught not having enough insurance to replace the daily necessities and other assets that you’ve spent time and money adding to your lifestyle.
In recent years, the housing market has been on a decline. In a strong housing market, you would be able to know that your home is going to be worth far more in a few years. This will undoubtedly become the norm again in the future, but you should know the appraised value of your home at all times to make sure that you are fully insured for the worth of your home. A good homeowner’s tip would be to remember that it is far more important to be over-insured than under-insured. Also, make sure that you are with a reputable company that has a fast response time. You don’t want to be caught in a disaster and have difficulty making claims. Make sure that you have flood insurance, even if you aren’t in a flood plain! You never know what is going to happen with any sort of certainty.
When it comes to how to buy homeowner’s insurance, make sure that you compare all companies that serve your area. Look at the options, pay attention to who has local agents and offices, and read all the fine print. If there is anything about your contract or policy you don’t understand, have it thoroughly explained to you before you agree to it. You should know very clearly what the details of your policy are and what your deductibles are. Always know what your policy will and will not cover.