Thursday, September 5, 2013

Things To Look For in Home Insurance

Before we even signed papers on our new home last year, the first thing we had to do was secure home insurance. I'm not going to lie. I was completely overwhelmed as we shopped around looking for the perfect policy for our home. Luckily we had an experienced mortgage broker that explained everything to us so we were able to find a great policy that fits our needs. Below you will find some terms that will help you with choosing the perfect insurance policy for your family. 

Dwelling: This typically will cover your home and any attached structures as well as any built in appliances such as plumbing, air condition systems, wiring, etc.

Other Structures: This covers detached structures like garages, sheds, fencing, driveways, sidewalks, patios, etc. 

Personal Property: Personal property covers all of the contents of your home and personal items owned by your family.  Check your policy for items like firearms, jewelry, cash, etc. as most policies have limited coverage for these types of items.

Loss of Use: These are your living expenses if you cannot live in your home while repairs are being made. For instance, my sister and her husband had some damage to their home after a lightening strike. They were given a hotel allowance as well as a food allowance to live while they were unable to live in their home. 

Theft Coverage Protection: This adds to normal theft coverage by including vehicle contents, boat contents, etc. 

Inflation Guard: This increases the amount of your insurance to go with inflation to ensure you maintain the right amount of coverage in the case of a loss. 

Guaranteed replacement cost: This is the cost to rebuild your home if you have met the requirements of your policy.

Extended replacement cost coverage: This coverage insures your home for a certain value and then adds another percentage if the costs run more than anticipated. 

Scheduled personal property: This coverage is for articles like stamps, coins, computers, antiques, art, etc. that your regular policy might not cover. 

Secondary residence: Coverage for instances like summer homes where someone might not live year round.

Home insurance is so important when you own your own home. You need to make sure you have your house properly appraised so you can ensure you have enough coverage to cover your needs if the unfortunate would occur. If you are in the market for a new home, click here to find out more about home insurance

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