Even if you already have a homeowners insurance, read on and see if you have adequate protection. During these difficult times, it is essential that a reputable homeowners insurance company will help replace your house or your belongings or pay for your liabilities if something bad happens.
Types of Additional Endorsement:Coverage for Child in College
Make sure there is a provision in your homeowner’s insurance policy covering your children’s losses while they are in their temporary residence. Temporary residence refers to their dorm room or rental apartment near their schools.Water Backup
If your house includes a basement or any structure below ground, you need to insure it for water damage due to a defective sewer or drain. Make sure the correct water-caused loss endorsement is included in your policy.Trampoline Accident Coverage
If you own a trampoline, make sure it is covered in your house insurance policy. Many insurance firms have already put trampoline accident as a homeowners insurance exclusion because of large numbers of claims related to trampoline accidents.
Types of Additional Insurance You Might Need
Jewelry Insurance
If you have valuable jewelry, check the limits of your jewelry coverage in your policy. You might be surprised that it is only $1,000 or other amounts lower than what you expected. Check your pieces of jewelry, list their values or price estimates and then add up the amounts.
Choosing Between Replacement Cost and Market Value
If you buy a house using a loan, your mortgage lender will require you to get a homeowners insurance policy. Most often your home valuation is higher than your purchase price. This home valuation is referred to as the replacement cost, which is the cost to rebuild your house in the same size and quality at current construction costs. Market value refers to the purchase price. Most risk analysts advice homebuyers to base the amount of homeowners insurance on the replacement value so that they will get the same size and quality of house in case something happens to the house.
Tips for Lowering Your Homeowners Insurance Premium
- Set your deductible to at least $250. This is the amount you pay in case of a claim.
- Maintain a good credit score. Insurance companies believe that you are not likely to make false claims if you have high credit ratings.
- Bigger premium discounts are given to newer homes.
- Premiums are usually cheaper for homes in the suburbs than in the city.
- Install security systems and fire alarms. Show your receipts from the security system company.