From Dean Dowd on September 12, 2008 in General Remodel
If you are a homeowner or are becoming one, Im sure youre well aware of home insurance. Relatively inexpensive, it really is in your best interest to have it; and if you are trying to obtain financing, most lenders require it. So what exactly does home insurance cover, and what is the right amount of coverage?
- Essentially, you want to take out a policy that is affordable each month and provides adequate coverage.
- An ideal policy will have a low deductible at around $500; but it may be worth your while to have a higher deductible in some situations.
- You want a policy that more than covers the complete replacement of your home in case of fire or other disaster.
- You also want coverage in your policy to cover your belongings and any outbuildings.
- If you have antique furniture, guns, collectables, or a large amount of valuable jewelry, it is advisable to invest in additional coverage.
- Homeowners policies will also cover theft, and minor problems such as a broken water pipe or a tree falling on an outbuilding.
Submitting a Claim
A good agent should take into account the current value of the home in addition to the going construction rates in the advent of work needed. If you do happen to file a claim, the insurance company will send out an adjuster to assess the damage. You will have the opportunity to select your own contractor, but the insurance company will have to approve the estimate. For the coverage home insurance policies provide, the monthly payments are relatively inexpensive. For example, my home is 1300 square feet, and my monthly premium is only $50. This payment is included in my mortgage payment, and I dont even notice it! If you have submitted a claim, request free estimates from prescreened contractors in your area.