When shopping for the perfect home, we tend to focus on low mortgage rates and forget including home insurance policies on our criteria; this should not be the case. A home insurance policy saves you from the headache of having to rebuild your house when it is damaged. It is a safety net wherein you can be sure that you do not have to shed big amounts of money. If you’re looking into purchasing a new property, then here are some basic facts about home insurance you need to know:
Having a standard home insurance covers your belongings, assistance to any injuries or damage to family members and even pets. There are many types of policies and may differ from one state to another, so remember to verify and check the inclusive items.
This is probably the biggest mistake you can make in purchasing a property: not being familiar with the coverage of a policy. Standard home policies do not include damage caused by floods or earthquakes, these are separate policies that needs to be purchased depending on your location. If you’re looking into a beach house, then any damage caused by the wind is not also covered. You should purchase a windstorm insurance policy for this type of property.
The key to a well written contract would be getting as detailed information as possible. Declare all your belongings such as jewelry, art, and any collectible you have. Make a verified list with the help of your agent and constantly update it when additional valuable items are collected. If you are planning on purchasing a property with a pool or spa, then expect that you will be purchasing extra coverage.
The market value of properties fluctuate from time to time, but this does not mean you should downgrade or upgrade your policy. Make sure to declare how much money you need to rebuild the house itself and not how much it costs as of today. By doing so you are ensured that materials, labor and everything needed for rebuilding and repairing is covered and not affected by any market value.
As you expand your space or add upgrades to your home, you should also keep your insurance policy updated. Have a yearly schedule with your agent to determine whether you need to purchase additional protection or upgrade your policy. Over the years you add rooms to your house, but if a tragedy strikes and your place needs to be rebuilt, you are basically left with insurance money that can only cover the state of your old house because these upgrades weren’t declared to the insuring company. Keep your policy at par and level with your home and you’ll have no worries despite disasters.
There are more things to consider with home insurance policies, so when in doubt do not be shy and ask your agent. It is better to be secured and ready than having to be vulnerable when the damage has been done.