Homeowner Insurance Tips
If you own a home, rent, or are thinking of buying a home, here are tips on how to ensure you have adequate coverage. It is vital to understand the importance of homeowner insurance so you have adequate coverage when you need it.
1. Homeowner Insurance is a Necessity
Homeowner insurance protects your assets in case of a loss. If you lose your home and your possessions in a covered catastrophe, the policy will cover at least part of the cost. It also protects you from being liable for accidents that happen on your property and damage to other properties.
2. How Much Coverage Do You Need?
Periodically updating the coverage on your home may help reduce the amount you pay out-of-pocket in case of a loss, or a claim. Different packages of insurance coverages are available for homeowners and renters. Coverage for specific events are listed in each coverage, and usually include events such as theft, fire, and windstorm. Most homeowner policies also include additional types of coverage for personal liability, property damage, medical payments and additional living expenses, which covers the cost of temporary housing in case the home becomes uninhabitable. Contents and personal property will also affect the cost of the coverage. Other items, such as a swimming pool, or a shed, will likely increase liability costs. If there is a mortgage on the home, the lender may require a certain amount of insurance coverage. You should add additional coverage for items such as jewelry, antiques, art collections, and other high-priced items.
3. Don't Forget About the Deductible
A deductible is the amount of money paid out-of-pocket for each claim filed on your house and personal property. Generally, policies with higher deductibles are less expensive than policies with lower deductibles. However, it is important to feel comfortable with the amount of deductible you will have to pay in case of a claim.
4. Replacement Cost vs. Actual Cash Value
These are the valuation options for which you can insure your home. Insurance for replacement cost means your home is insured for the amount it would take to replace, rebuild, and repair damages with materials of similar kind and quality, at today's costs. Actual cash value means the amount needed to replace, rebuild, and repair your home and contents after depreciation. You may also insure over the home's value, to allow for higher construction costs, so you may not have to pay out-of-pocket.
5. Find Out About Discounts and Credits
There are many different homeowner insurance discounts and credits offered at NYCM Insurance. This includes newer homes, added security/fire protections, renovator credit, and insuring both home and auto with us. Ask your agent about discounts and credits available for you and your home.
6. Read Your Policy
An insurance policy is a legal contract. Your responsibilities as a policy holder are included under the contract. You should also read the policy carefully so that you understand your home's coverage. Also remember to keep your policy documents in a safe and secure place.
7. Review Your Policy Every Year
Additions, remodeling, and home improvements will often add to the value of your home, possibly leaving you with inadequate coverage. Keep this in mind when making home improvements. Remember to review your policy every year to make sure that the coverage is up-to date.
If you have questions about your current policy, please contact you agent.
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