Home Insurance Money Saving Tips
As a insurance specialists we understands that your home is probably your most valuable asset. It is also a huge risk for you financially. What if a catastrophe strikes? What if you suffered from a fire, flood, vandalism or any other catastrophe? What if someone visiting you slips falls and suffers a serious injury? And sues you? An accident like that could put a real big dent in your financial security.
For most people, insurance is a mystery. They know they need to have insurance for their homes (mortgage lenders require it), but they don’t understand the coverage provided by the policy. And they don’t know which insurance companies offer the best prices. Because most people don’t fully understand the insurance policy they are purchasing, many people think insurance is a rip-off.
Home insurance is not created equal. In fact, almost none of it is. There are thousands of different products out there, from hundreds of insurance companies. How do you find the insurance and the insurance company that is best for you? You read this special report and tap into my vast knowledge of the products and the companies that offer them.
Insurance Over is a local Houston insurance agency specialized in home insurance. With over 20 of insurance experience I know what kind of insurance fits your needs best. I also know what insurance companies sell quality insurance at the lowest price. Since I am specialized in the insurance needs of homeowners and their families for over two decades, I have decided to dedicate myself to solving some of the mysteries of homeowners insurance quotes.
Flood insurance and earthquake coverage are two perils for which there is no coverage.
- You can get coverage for earthquake and flood damage in a separate policy or as an endorsement to your homeowners insurance coverage.
Replacement Cost or Actual Cash Value
Your home policy does not provide coverage for all potential catastrophes that could damage or destroy your home. Earthquake and
There is also no coverage for damage caused by water that seeps into your home from the ground.
You do have coverage for losses related to fire, smoke, lightning, wind storms, hail, explosions, vandalism and theft.
There are different ways to insure your home. Generally you insure both the structure and your personal property. Let’s take the structure first.
There are two types of coverage: replacement cost and actual cash value.
Replacement cost coverage is highly recommended for all homeowners. Under replacement cost coverage, the insurance will cover the cost of replacing the part of the structure that is damaged, up to a maximum dollar amount.
Under actual cash value coverage will cover the cost of replacing the damaged structure minus the depreciation. If you have an older home, this maybe the coverage you want. Unless your policy specifically says it provides replacement cost coverage, the coverage is for actual cash value.
So how much insurance should you have?
Basically, unless you want to pay some of the costs yourself, you should insure your home for what it would cost to rebuild it if your residence were destroyed.
How do you find this out?
Your insurance agent can provide you with this information. If you don’t have an insurance agent and you should, you can contact your local builders association. In the home construction world, building costs are calculated on a square foot basis. As such, to determine the cost to rebuild your home, take the square footage of your house and multiply by the average per square foot building rate in your area.
Your possessions are also insured on a replacement cost or actual cash value basis. Again, unless specified otherwise, the coverage in your policy is actual cash value.
Home insurance policies also have limits on coverage for such items as jewelry, fine art and computer equipment. Read your policy and see what these limits are. For example, the standard policy will provide a maximum of $1,000 coverage for your jewelry if it is lost or stolen. If you have lots of jewelry, fine art or computer equipment, you should consider purchasing a special personal property endorsements or floaters that provides the coverage you need.
Speaking of needs, you need to take a written and a visual (still pictures or video) inventories of everything you own in your home and in other buildings on the property.
- Include all furniture -
- Indoor and outdoor, appliances, stereos, computers and other electronic equipment, hobby materials and recreational equipment, china, silverware, kitchen equipment, linens, jewelry and clothing. For the major items (computers, televisions, stereo systems, etc.).
- Write down the serial number, make or model number, purchase price, present value and date of purchase of each item.
- If you have the receipts for the items, attach them to the inventory.
- Make at least two copies of the inventory and store one of those copies offsite a safe deposit box is a good place.
- Store the pictures or video of the inventory offsite as well.