What You Need To Know About Home Insurance In Five Easy Steps

It’s critical that you be aware that there are two different types of home insurance when you look into taking out insurance cover.Insurance companies will help you with the job of protecting your home by providing both services individually or save more by combining the policies. They will of course charge you for the privilege :-)One kind of home insurance would cover the contents of your home, covering anything inside your home that would need to be replaced. And that is called home content insurance.Be aware of what you home owners insurance covers before you take out a policy. Because even though it appears to cover a wide range of possibilities you will find that most home insurance policies come with exclusions.

Any contents of your home that you are able to carry are covered and protected against threats such as theft, damage due to fire or flood, or occasions where your possessions get stolen or vandalized.Contents insurance lets you insure items in your home only to whatever amount you specifify. So make sure you can afford the cover.Remember that you shouldn’t underinsure your property, but at the same time you don’t want to overinsure lest you pay unnecessarily high premiums.Those of you who may be insuring electronics such as computers or televisions should check to see if your policy contains a maximum coverage amount for such equipment. So make sure that your homeowners insurance company ratings takes account of this. Some of them do, and this can be a nasty surprise if you have a issue and then try to claim, but cannot get the full value of your items.

You must take different policy for office equipment if your working from home and using a room as your office. As one counts as home use, whilst the other counts as a business.Christmas is a time of year that the value within ones home is greatly increased and some companies make allowances for this time of year by increasing your cover. So be sure to check that your policy also does this. Your partners present might have been expensive after all!The other option you can consider for your insurance is a buildings insurance policy.This type of coverage will not cover anything inside your home. But covers the actual physical building itself.

Permanent installations within the house, such as fitted kitchens and bathroom items, must also be included.Your outbuildings like garages, sheds and funiture on your porch would also get covered under buildings insurance.When taking out your mortgage it is required that you have buildings insurance. This is typcially a basic requirement of the mortage company, so you generally can’t ovoid it (even if you wanted too).This type of home-owner’s insurance coverage is calculated against the expense of reconstructing your property entirely.You are required to pay extra towards the fee before the insurance company would handle the rest; the same deal goes for any other insurance policy type.

If you pay a greater amount front, in the form of specifying a higher excess, then your insurance will cost less. But do be aware that sometimes the excesses on these policies can be quite large. So make sure you could afford it.Most insurance companies will provide a cheaper rate if you take buy more than one type. So if you take the two together they may give you a small reduction in the total cost.It is important to cosider the price of home insurance and read the small print of any exclusions.Make sure you know what the exclusions and limitations of all insurance types are. This is something you need to be sure of. Not guess about.It is a known fact that homeowners take out a policy and due to the small print, they are unable to put in a claim when the time comes. So don’t let that happen to you. Be prepared.

About the author

Sherry Fields Sherry Fields has been working in real estate since 2002. Working with the development team for the Hilton Garden Inn gave her strategic information on the commercial real estate market in Missoula. Broadening her scope she moved into the residential market and earned the designation SFR in short sales and foreclosures. Currently affiliated with Prudential Montana Real Estate, she works with both buyers and sellers "building relationships so you can buy & sell with confidence". Sherry Fields has recently earned the CREN designation - Certified Real Estate Negotiator. While price is a large part of negotiation - it is also about timing everything from the closing date to inspections, appraisals, home insurance - and it is about negotiating items that can show up in home inspections to achieve a mutually acceptable outcome.

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