Homeowner’s insurance is important in securing your home and your personal belongings. If something should happen to your home, it will pay to replace or repair it. In addition, it protects you from lawsuits. Here are five reasons to purchase this type of insurance.
Covers Personal Property
Homeowners insurance is a great option if you want to protect your valuables. In addition to providing comprehensive coverage for your dwelling, home insurance also covers personal property. Some policies offer schedules for certain items, such as jewelry, art, and musical instruments. Schedules can be especially useful if you have high-value belongings. However, scheduling these items may increase the cost of your policy.
When choosing the right policy for your personal property, consider the coverage you need. The coverage amount should be equal to or more than the value of your belongings. Most policies only cover a certain percentage of the dwelling’s value, but you can often choose the coverage you need. Also, take a home inventory of your property to get an idea of its worth. It may be a good idea to record your inventory to document its value in case of a claim.
Your property coverage can help replace your belongings in a loss. Personal property insurance will also cover items that fall out of your home. Personal property coverage will cover the cost of replacing the items if your home is completely destroyed or damaged.
Pays to Fix or Replace Your House
If your house is damaged and you can’t live in it anymore, you can file a claim with your homeowner’s insurance company. In most cases, they will send you a check for the repairs. Sometimes, they will even recommend a contractor to fix your house. However, if you’d like to save money, you can do the repairs yourself. However, it’s a good idea to talk to an insurance agent before you attempt any repairs.
What kind of coverage do you need? You should know that the amount you’ll receive from your homeowner’s insurance depends on your policy. The dollar limit is usually on the declarations page of your policy. In some cases, the policy pays to fix or replace your home at the full replacement cost. You can also ask your insurer for a certain percentage, like 25 percent.
Saves You Money
Homeowner’s insurance is often more expensive than it needs to be, but there are ways to save money. Some insurers offer incentives and discounts to encourage customers to make smart choices. For instance, you can increase the deductible to save money. The deductible is the amount you will pay if you have to make a claim, and paying a higher deductible can reduce your premium by up to 12% annually.
You can also get additional discounts for certain improvements and behavior. For example, installing a fire alarm, reducing credit card balances, and improving your credit score can help you save money. Adding locks to doors and windows will also help save money on your homeowner’s insurance premium. Insurers also consider how much liability you have; having a high credit score will lower your liability risk.
If you have an older home, installing storm shutters and impact-resistant roofing could lower your insurance premiums. You can also request a new inspection of your property to lower your insurance costs.