A Brief Guide to Home Insurance
If you decided it is time to protect your family’s assets and you are on the look-out for a home insurance policy, then you should know that there are a couple of things you should pay attention to before you close the deal with an insurance company. The first feature a good home insurance policy should have is the coverage for your home, as this is usually the biggest financial investment you will make.
A home insurance policy usually includes protection against fire, explosion, hail, falling objects, riot, vehicles, snow and theft. However, you should inquire whether your insurance policy provides a guaranteed replacement cost policy, because otherwise you will end up having a policy that does not cover the entire damage to your house and those extra cash will have to come out of your own pocket.
Depending on the area you live in, some companies will refuse to include certain natural disasters coverage. For example, if you live in an area where you get a lot of hurricanes, then you should not expect to receive any money in case your home gets damaged by a tornado or hurricane. However, for these cases you can choose to purchase a separate insurance policy for your home.
Having a coverage policy for your personal assets is also a must in any home insurance package. Even though it is advisable to close a separate insurance policy for items such as art collections, expensive jewelry or brand clothing, you can include the rest of your items in your home insurance policy. The maximum amount of cash that you will receive for each stolen or damaged item is around two thousand dollars per item and some companies will require you to provide an appraisal for them. However, it is better that they are protected in case something unexpected happens to your house.
Another important feature a home insurance policy should include is the liability insurance. In case someone has an accident while on your property or inside your home and he threatens to sue you for the medical bill, the liability insurance is a real life saver. The liability insurance will also cover the accidents that happen around your home, like for example breaking your neighbor’s window while playing tennis or football or the dog damaging the neighbor’s lawn.
Lastly, when you are discussing your home insurance policy with a certain company, make sure to mention the protections systems you have installed around the house or if your house is near a hydrant or close to a fire station. These elements can help you reduce the price of your insurance cover.
