Buying Home Insurance: 3 Important Tips to Consider First
As a homeowner, one of the most important decisions you will ever have to make is purchasing home insurance. There are several tips you should be aware of that can make the buying process less stressful.
Understand the Different Types of Home Insurance
One of the most important things to consider is what types of home insurance you have access to. There are a lot of great types today, which include HO1, HO2, HO3 and HO5, HO6, cash value and replacement value insurance.
The most common used policy today is HO3 insurance. It protects your home against damage that is not excluded according to your policy. Some standard exemptions for this policy are water seepage and earthquakes.
A cash value type of policy is another good option, and it pays you the original price of your property or possessions if they were damaged. HO5 is a comprehensive type of policy, and it covers your home and personal possessions based on an open perils policy.
Lower Insurance Costs
Having home insurance is important, but sometimes it can get expensive. That's why it's important to lower your insurance costs any way possible. There are several great ways you can do this. Start by raising your deductible – the amount of money you pay before your insurance company pays the claim. The higher your deductible is, the lower your premiums are going to be every month.
It's also a good idea to buy your home and home insurance from the same place. A lot of times, these companies will give you discounted rates and will lower your premium costs. Adding storm shelters, modernizing your heating system and reinforcing your roof can also lower your premiums because it safeguards your home from potential disasters.
Know Home Insurance Terms
Before deciding on an insurance policy for your home, it's important to know specific home insurance terms. That way, you don't get confused when looking yourself or talking with an insurance agent. As mentioned above, deductible is the amount you pay before your insurance kicks in. Premiums are how much your insurance costs per month.
Liability coverage is a coverage that pays for medical bills if someone is hurt on your property. Riders are policies that can include specific items, whether it's an antique or jewelry. Replacement costs are paid by your insurance company to cover the full costs of replacing your property or possessions.
If you want to protect your home, it's a good idea to buy home insurance. In order to make the right decision about your home insurance (with companies like Kerr Agency), you can consider these tips.