Are you planning to buy a homeowners insurance? If yes, then you are at the right place. The home that you are living is an abode you need to take care of not just by cleaning, but also by protecting it from disasters. So here we are to give you the best advice before you buy that insurance policy.
Do Compare
Whenever you set out for a home insurance policy, do compare prices of a minimum of five companies. This is to ensure a good deal as the prices vary a lot. The things you should consider include price, coverage and above all the customer reviews. Since home insurance claims under homeowners insurance are made in times of disaster, you must ensure that the customer service of the particular company is really good. This is necessary for having the right assistance at the right time. Look for value and not always the best price. A Tip: Think about auto coverage from the same company.
Pay insurance payments to the mortgage lender
It is advisable to attach your insurance payment with your mortgage payment as it is preferred by a lot of lenders these days. This way the lender will get to know the type of insurance cover you have bought to protect his investment and have a sigh of relief. Your lenders will then happily pay off the insurance premiums. Also, you may have the advantage of paying lower premium, if you are regular with your payments. Remember, insurance companies do check credit scores these days.
Avoid underinsurance
Well the price of the property will increase every year and your policy may fall short of the expenses you may require following a disaster. And this often gets uncovered when you apply for house insurance claims. The home materials and labor prices increase with each passing year. The right solution to overcome this problem is to purchase an extended coverage.
Coverage
You must know what all is covered and what is not under a homeowners insurance policy. This will help you make the right claim. Usually you may have to buy a separate flood insurance or an earthquake insurance policy since it is not covered under standard homeowners insurance policies. They do not cover some damages too like mold damage and collectibles, jewelry and cash have limited coverage. So in this case, people must enhance coverage of all the things by buying a separate homeowners policy.
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For your knowledge, here are a few levels of coverage explained:
HO-2 : a broad policy which protects your home against 16 disasters
HO-3 : a broad policy that protects from all disasters excluding the ones in the policy
HO-5 : for new, well-maintained homes. Covers all disasters except the ones not mentioned in the policy.
HO-6 : for Condominimums and includes liability coverage, personal property coverage and coverage of improvements
HO-7 : The policy is for mobile homes
HO-8 : the policy is for older homes. It covers real cash value only.
Above all you must understand the details of the policy bought. It is extremely important to understand the terms in order to get the right insurance claims assistance
Buy the right one!