subject: Home Owner Insurance Policies: A Checklist [print this page] Home Owner Insurance Policies: A Checklist
Keeping your home protected is no small feat, especially if it's in terms of insurance-protection. After all, insurance 'premiums' do justice to the word - for they don't come in pennies. Here is a list of things you should be mindful of when you are looking to get home owner insurance.
Deductibles
This is the amount you have to pay before the insurance company pays out. The higher the deductible (which means the gross amount for claims will be reduced as well), the lower the premiums will get. In essence, it means that you get less if you pay less.
Policy coverage
There are standard home owner insurance policies. There are also peril-specific policies such as flood insurance or earthquake insurance. There may also be policies that cover almost every risk there is. There is a myriad of coverage options in the insurance market. Take your pick and make sure that you are sufficiently insured, especially if you are in a multiple-peril area.
Value
When you state the value of your home, make sure that you don't include the value of the land that your house sits on. The premium that you'll have to pay depends on the risk level of the event that you are insured from, and the value that will have to be reimbursed in case damage occurs. Of course a house with a higher value will command higher reimbursements, so it also means that you'll need to pay larger premiums. Land, as you know, doesn't get damaged or lost ( unless it's near a body of water, in which case a totally different set of rules apply) so there's no point in including its value for insurance.
Updates
You need to keep your home owner insurance policy updates with the relevant property valuation information, that way, you can receive what's truly your due when the time comes for you to file claim. Property values usually rise, so it's important that it's so noted in the policy.
Risk Level
There really is no guaranteed way for you to fully risk-proof your home. However, installing security and fire alarm systems can go along way in reducing the likelihood of fire and crime-related incidents occurring. Insurance companies will give you discounts for this.
Acquiring home insurance with sufficient coverage can leave you comfortable and assured that your home - your investment - is protected. And it never hurts to try to get the best deal in everything, even in home insurance.
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