Home Insurance 101: What You Need to Know
After Hurricane Harvey, it is time to insure your homes to cover for any losses in case of a calamity. Home insurance is important for multiple reasons – it covers your precious investment against any damage or loss due to natural disasters or unfortunate accidents. Secondly, it protects your from any lawsuits pertaining to loss of life or damage to other individuals on your property. If you have not considered buying a home insurance policy, now is the right time to secure your assets. A home insurance will potentially save you thousands of dollars in losses in case you lose your precious home and belongings in an unlikely event. Moreover, the aftermath of Hurricane Harvey has left people wondering what might be next.
Purchasing a home is an expensive endeavor that requires years of savings and planning. Imagine losing your precious investment such as your dream home to a fire or flood. You lose your property along with your belongings such as the furnishings, valuable assets and other important items. While losing your valued treasures will be really upsetting, you can at least avoid total loss by insuring your home and belongings. The beauty of insurance is that it will compensate you financially to make up for your losses. Without an insurance policy you could lose your home forever, but with insurance your losses will be minimized, allowing you to rebuild your home without going through the troubles of saving money for years. When you consider getting a home insurance, you need to explore your options in order to get the best deal available in the market. While you explore your options, you surely need to consider why you need Home Insurance to cover your property.
Home Insurance 101
You property is at the risk of damage due to various conditions, which include damage to property and belongings due to fire, flooding, sewerage backup and natural disasters. In addition, if someone gets hurt on your property due to negligence such as a wet floor resulting in slipping, they can file claim for their losses. In such scenarios, if your property is not insured you would need to bear the losses out of your own pocket. This includes paying hefty coverage for personal injury claims, repairing your house extensively and replacing the damaged furnishings and fixtures.
However, these risks can be eliminated by insuring your property that can provide cover against damage due to accidents or natural disasters and in some extended coverage policies compensation for personal injury claims is provided. Home insurance is imperative these days as it can ease your financial burdens in many situations. Here is how you can benefit from a home insurance:
If your property was damaged or demolished in a natural disaster, you can claim the insured amount to acquire the property again. Similarly, you can even receive cover for your belongings that may be lost during the incident.
Property value fluctuates rapidly these days and most of the time increases multifold. For example, if you purchased your property for a certain amount in 2007, it is likely that in 2017 its market value will be quite higher. Property value increases day by day and purchasing a property these days is challenging. You save money for years and purchase your dream home only to see it being demolished due to a fire or calamity.
If your property is not insured, you have no way to cover your losses and would need to use your personal funds to repair or purchase another property. However, if you have insured your house against natural disasters or any other damages, you can obtain compensation for your losses. The best part is that new insurance plans offer variable coverage that would compensate the actual market value and not the value at the time of obtaining the policy. For example, if you purchased a property in 2007 for $100,000 that is evaluated at $175,000 in 2017, the insurance company will compensate $175,000 in case of loss of property.
What you need to explore?
Before obtaining property insurance, you need to determine various factors and obtain quotations from different providers to make informed decisions. Here are a few factors you should consider before purchasing home insurance:
- Why you need home insurance: type of protection required
- The coverage amount: you need to determine the coverage amount in case of total loss of property
- The deductible amount: compare the deductibles of different insurance providers
- Type of compensation: will you receive actual cash value or replacement cost only
- Discounts: ask if there are discounts of premiums also compare prices of competitors and other agents
- Policy: always read the insurance policy in detail before signing up to avoid any problems later