If you’ve just purchased a home or are about to seal the deal, you may be considering the purchase of a homeowners insurance policy. Home insurance protects the policyholder in the event of unanticipated property damage. Here are a couple answers to our most common homeowners insurance questions.
Usually, these policies cover fire, theft and specified natural disasters as well as if someone is injured in your home. Depending on your location, you may be required or opt to have flood or earthquake insurance.
When compared to the cost of purchasing and maintaining a home, a homeowners’ policy is very cost effective. You can set your deductible, but most homeowners choose between $500 and $1,000. In 2010, the average annual premium was about $900 and in most cases, this is included in your monthly mortgage payments. Compare this number to what it might cost to replace your roof if a tree falls on it or settle a liability case if someone in injured in your back yard.
Generally, your insurance company should be responsive when you place a claim. As soon as you become aware of property damage, contact your homeowner’s insurance agency and file a claim. The insurance company will send an adjuster out to your property to assess the damage. Based off of the adjuster’s assessment, the agency will offer you a sum of money to repair the damages. If you feel this offer is too small, you can negotiate. Remember to only file claims when necessary to avoid increases in premiums.
In comparison to an insurance policy, a warranty is severely limited. A warranty can cover physical home elements like A/C systems or refrigerators. However, in the event of weather damage, theft or other losses, you’ll have to foot the bill yourself. Conversely, homeowners’ policies cover all of the above in addition to the home’s physical components.
Purchasing a home can be a challenging experience, but a homeowners’ insurance policy will give you peace of mind at the end of the day. Some loan programs might require the borrower to carry homeowners insurance. Protect yourself and your investment and get a policy.
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