What You Need to Know About Homeowner’s Insurance

Homeowner’s insurance brings not only protection, but also peace of mind. Besides, your lender will require proof of coverage to close on your home. An asset as important as your home should be covered. It is important to be informed as there are many facets of homeowner’s insurance and they are not all cut and dried. We have laid out some important tips to guide you in choosing and using your homeowner’s insurance.

1. Claim Wisely

Homeowner’s insurance is meant to cover you and your home in the events of disaster and calamity. Most claims are made due to damage from hail, fire, and wind. The following most common are claims are due to property damage and theft. Be aware that if you file too many claims, your premium may go up or your policy may even be cancelled. You might want to think twice if you are thinking of filing a claim for small repairs. Also, you might want to hold off on filing a claim if it is about as much as your out-of-pocket expenses. And speaking of deductibles…

2. Choose the Right Deductible

In the case of homeowner’s insurance, deductibles apply to each and every claim. Generally, the higher the deductible, the lower your premium. This helps to ensure that there will not be many lower-priced claims filed. While a discount off your premium when choosing a high deductible is tempting, make sure to choose a deductible that is feasible for you in case of an accident or disaster.

3. Homeowner’s Insurance…Not Maintenance Insurance

Numerous claims can signal to your insurer that you are high-risk. As previously mentioned, this might even cause your insurance policy to be cancelled. It is the homeowner’s responsibility to maintain the property and to make sure that their home is safe. For example, make sure that any leaks, rotting wood, and faulty fences are promptly taken care of. Insurance companies will not be eager to insure your home if you treat your homeowner’s insurance policy as a home maintenance plan.

4. Know What Is Covered by Your Policy, and What Isn’t

Did you know you need a separate policy for floods? Homeowner’s insurance policies do not cover floods. Be sure to read and go over what your policy covers in case you may need extra coverage; you want to make sure you are as protected as possible. If you own dogs, it is a good idea to get liability coverage, but be aware of breed restrictions. There are many factors that affect your policy decisions and premiums. Being as informed as possible will only benefit you both in the short and long run. Insurance policies can seem complicated, so contact us and we will be happy to answer any questions and go over your homeowner’s insurance quote!