Homeowner’s insurance provides essential and oftentimes excellent protection in the event of an emergency, and going without it is a risky proposition. Understanding what type of coverage you need will prevent you from overpaying or underpaying for insurance and will ensure that your home and possessions are protected if the worst happens. Here are our tips for finding the right coverage.
- Consider how much insurance you can afford. You can choose to have a higher deductible, which will lower your monthly rate, or you can choose a lower deductible to prevent large out-of-pocket expenses. Both have pros and cons, and your choice really comes down to your financial circumstances.
- Make sure you choose a plan that covers the replacement of your home rather than the market value. You want to be able to rebuild in the event of a catastrophe.
- Know the home’s history. Consider the finds in your home inspection, which could elevate your insurance rates. The cost to insure older homes is generally more expensive than newer homes because of the potential for structural issues.
- If you plan to do upgrades, you will boost your home’s value, so you will need the coverage you choose to not only reflect, but also to cover those changes.
- If you live in an area where fires are possible, having fire insurance included in your policy is vital.
- If you live in a flood zone, you will be required by your mortgage holder to have flood insurance, which is an expensive addition to your policy. Having it, however, could be a smart investment for anyone who could suffer flood damage, such as those who live at the beach. Watching the number of people who suffered after Hurricane Michael should encourage anyone who lives near water with the potential to rise to add flood insurance to their policies.
- Make sure accidental damage is part of your coverage. That will ensure that water damage not caused by flooding, such as a sink accidently left running or pipes that burst, is covered.
- Make sure your insurance policy covers the cost to replace your belongings as well. Most policies include the coverage of your belongings, but make sure your coverage is expansive enough to replace your items, whether at home or away from home. (If you lose an expensive camera on vacation or your laptop is stolen from the coffeeshop, homeowner’s insurance should cover those loses.)
- Consider the location of your home. The farther away you are from a fire station, the more you will pay. Homes located in areas known as tornado alleys will also pay more.
- Check your company’s rating. Make sure that the insurance company you choose is able to cover your costs. They will be investigating you to determine the cost of insurance, so you should do the same.
The right legal team can help you find the right insurance company and can help you fight for cover if a claim is denied. Contact the Monfiston Firm, P.A. at 888-988-FIRM (3476) to help you make the right decision for your unique needs.