Some of the best moments in life come from the simple comforts of home and having home insurance is a great way to protect one of your most valuable assets. While shopping for coverage can often raise more questions than answers, here is some insight to set you up for a successful home insurance shopping experience.
Does my homeowners insurance policy cover replacement cost or the actual cash value?
When deciding on your homeowners policy, it’s important to understand how you’re reimbursed for property loss. If your claim settlement terms are for an item’s replacement cost, you’ll likely be reimbursed in payment equal to what would be required to replace the items you lost. If your claim settlement terms are for an item’s actual cash value, you’ll likely be compensated for the value of the item it would be sold for at that time. While replacement cost is more expensive, it can be an ideal form of coverage as it allows you to put yourself in the same position you were in prior to your loss. However, if you’re in a situation where you feel okay with slightly less protection, an actual cash value policy can help cut down your insurance costs.
Do I need an endorsement or rider on my homeowners insurance policy to cover some of my belongings?
A policy rider or endorsement is additional coverage (for an additional premium) for high value items that are excluded from your original policy. If you own expensive jewelry, artwork, antiques, oriental rugs, etc., you may want to consider a rider for your insurance policy.
One of the most important things you can do to protect your personal property is to complete a thorough home inventory before purchasing coverage. A complete listing of your possessions and their values is not only essential for filing claims, but can help you determine what coverage beyond a standard policy might be needed.
What losses aren’t covered by my homeowners policy?
While homeowners insurance differs from state-to-state and person-to-person, damage from natural disasters such as earthquakes, tornadoes and floods is typically not covered in a traditional homeowners insurance policy. There are a number of other cases your home insurance might not cover, so it’s important to clearly understand what is (and isn’t) covered and consider add-ons for your existing policy.
How much liability protection do I need?
Liability loss claims can often be the most expensive home insurance claim. When deciding how much personal liability coverage you need, you’ll often want enough to cover your total combined assets. You’ll also want to consider the liability risks attached to your home, such as something like a pool, trampoline or treehouse. A lawsuit could potentially leave you responsible for medical expenses, legal costs and more, so it’s important to have sufficient liability coverage. Luckily, it is typically one of the cheapest coverages under home insurance policies.
How can I save on my monthly premium?
There are a number of ways to save money on insurance premiums. A few examples include bundling auto and home insurance, long-time loyalty to a carrier, or having a history of no claims. Working with SelectQuote makes it easy to find out if you’re eligible for any policy-related home insurance discounts.
Trying to juggle all the moving pieces of buying home insurance can get overwhelming. We can help you through the complexities of buying home insurance by comparing coverage and rates from some of the most trusted insurance companies in just minutes. We’ll make sure you get the coverage you need at a price that fits your budget.