Homeowners Advice 101: The Easy Way to Understanding Home Insurance

Homeowners Advice 101: The Easy Way to Understanding Home Insurance

With unusual weather on the rise, it’s important to be sure that your home is protected at all times. Part of that is understanding home insurance plans and knowing where to find the right one for your home.

Not sure where to start? Our Home insurance 101 guide will give you some important tips on what you should know.

What is Home Insurance

Home or renters insurance is a form of insurance that covers damage to your home or your belongings that may occur in case of an emergency. These situations often include burglary, natural disasters, or fires.

Who Needs Home Insurance

While no one goes in thinking they “need” home insurance, many find they wish they had it when something bad happens. This is especially the case for those with more expensive items that are harder to replace.

Why Do You Need Home Insurance

Home insurance is a smart precaution that can protect you from extreme financial situations. For example, if you are already paying for new housing or medical bills that come as a result of such a crisis, home insurance can help you save from having to also replace most of your belongings.

What to Consider When Choosing Your Home Insurance

When choosing your home insurance it’s important to consider how much you expect to receive in the event of an emergency and how much you can afford to pay on a monthly basis. Keep in mind, the higher your monthly payment the more money you will be able to collect during difficult times.

Questions to Ask an Insurance Provider

If you’re still not sure if a home insurance plan is right for you, you’ll want to take the time to as an insurance rep some important questions. This may include what exactly is covered by your insurance, how much your premium is, and what circumstances are not covered by the insurance plan.

Home Insurance Do’s and Don’ts

To get the most out of your insurance plan, there are some important Do’s and Don’ts to keep in mind. These will help you keep clear expectations of what you’ll receive in the event of an emergency:

Do: Know About Market Value vs. Replacement Value

Your insurance plan will base the value of your items in one of two ways, market value or replacement value. Market value means the amount you would be able to purchase the item for today while replacement value is the amount the item was originally worth when you purchased it.

Don’t: Expect Much for Big Items

It’s important to know that most home insurance companies do not fully cover big-ticket items such as expensive jewelry, computers, or flat screen TVs. You may want to check with an insurance salesman about the percent covered for such items ahead of time.

Do: Keep Appraisal

To help ensure you receive the full value of what your items are worth, it’s important to keep appraisal receipts on hand to send in in case of an emergency. This will help avoid a “your word vs. theirs” situation from occurring.

Beyond Understanding Home Insurance

Understanding home insurance is just one of the many ways you can take care of and maintain the beautiful space you call home. Remember, the more you pour into your home, the more it will give back to you.

If you are looking for more ways to show your home a little love, we suggest checking out our blog on spring cleaning tips.

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