A home is one of the largest financial investments most people make in their lifetime. Apart from comfort, shelter, and security, a home may also be used as a source of equity. Accordingly, it is important to have proper homeowners insurance coverage to protect the equity created by the increased value of a home in the event of unforeseen but insurable damage or total destruction of the property.
Remember, protecting your home and your valuables with homeowners insurance cannot by itself prevent the occurrence or destruction created by a fire, hurricane, hail, lightning or other disasters which may or may not be listed as being covered in a homeowners insurance policy.Even when it may appear to you that you’ve done everything necessary to protect your home and valuables, you still may be subjected to an incident resulting in major physical, emotional, and financial lossIn short, you cannot rule out the unfortunate possibility of losing some or all of what you’ve treasured in your home.
Until the worst happens to their property from an insurable loss, many people are dissatisfied with their homeowners insurance coverage. They often make the mistake of focusing their attention primarily upon the cost of the insurance instead of considering their total insurance package. However, there are other important factors to be taken into consideration when buying homeowners insurance other than price.
The Value of Your Home
Before taking out any insurance coverage, it is important to determine the value of the possession you are insuring. When it comes to buying insurance for your home, you should determine the value of your house and its contents. This is critical in determining the correct amount of insurance necessary to protect your home and possessions.
You’ll need to make an estimation of the rebuilding cost of your home in the event your house is damaged either in part or in its entirety. Keep in mind that the land on which the house is built is not included in the value of the insurance coverage. If your house being insured is a new purchase, you should deduct the cost of the land from the price you paid when buying your home.
When calculating the value of your possessions, make a room by room inventory. However, beware of the possibility of underestimating the value of your personal property. In determining the replacement value of your possessions it is important to catalogue and identify the items and their corresponding value. It is often advisable to make a room by room video of your home and corresponding property within.
When the insurance company is calculating your premiums, numerous risk factors are taken into consideration. Among other things these may include the location of your home, the distance of your house from the nearest fire hydrant, potential fire hazards such as trees and brush, and how close it is to busy areas and highways. In addition, the crime rate in your area as well the grade of the lot your property resides on may also be factored in. To put it simply, everything that poses danger to your home is considered a risk factor and contributes to determine the ultimate insurance premium cost.
The lower the risk factors, the greater the possibilities of getting cheap homeowners insurance quotes. There are ways of lowering premiums and taking advantage of available cheaper homeowners insurance coverage through available discounts that can considerably reduce the cost of insurance.
One of the best ways of reducing the cost of your insurance policy is utilizing any available measure that might result in improved safety for your house and the reduced likelihood for destruction or damage. One of these safety measures is the installation of a fire and burglar alarm system, Although uncommon, a fire protection ceiling sprinkler system can add additional savings. The location of the nearest fire department and fire hydrants also are contributing factors in determining homeowners insurance premiums.
What the Insurance Coverage Entails
Policies may seem too complicated or boring to go through exhaustively. Most people just pick up their insurance policy, put them in a file and forget about them. Therefore, they don’t understand exactly what they are covered for.
If you don’t understand your insurance, you may find yourself in a desperate situation after filing a claim which has reduced, limited, or no coverage.Since, it will be too late to cover a claim with insurance after it has occurred, if not properly covered you may find yourself facing major expense from in incident which is not insured It is, therefore, important to know what your insurance covers and take necessary steps to avoid unacceptable expense that could result from an uninsured loss.
If the insurance policy is too complicated for you to understand, get help from an expert like the insurance specialists at Fox Insurance Agency.Even if you understand a large part of the homeowners policy, don’t overlook anything that is not clear to you.There are many included coverages, optional coverages, endorsement, coverage limitations, and parts of the policy that should be reviewed and considered fully when purchasing a homeowners insurance policy.
Filing a Claim
If there was no possibility of ever filing a claim with your insurer, there would be no point in buying a homeowners insurance policy. Nevertheless, many people go through the entire process of buying insurance but forget to find out what to do when they need it most. Consequently, they find themselves in despair as they try to get the right contacts and instructions on the best course to take when tragedy has already struck.
Before storing your policy papers, get to know exactly what to do if something terrible happens to your home and you need to file a claim. Remember, you’ll want quick processing of your claim in order to meet the cost of the losses and return to a normal lifestyle. If you don’t act quickly, you may find yourself without being able to occupy your home for a lengthy period of time before the claim is finally paid.
If someone is injured on your property, you may be held responsible for their medical bills, negligence, and related costs. Liability coverage which is commonly part of a homeowners insurance policy provides financial protection in case covered harm to people is directly related to your home for which you are determined responsible. This may include among other things a slip and fall injury on your property, dog bites from your pet provided the breed of animal is not excluded. It is, therefore, advisable to review and discuss your liability risk and coverage with your insurance company. As with many homeowners insurance coverages, the amount of liability coverage you have is available comes in different amounts. Weigh your options carefully in determining the amount of coverage you select. Additionally, further consideration should be given to purchasing an Umbrella insurance policy which may further enhance your liability protection.
Remember, if your home is damaged, it may not be possible to live in it until the necessary repair or reconstruction work is completed. While most insurers will offer you complete or limited financial assistance for temporary additional living expenses, don’t assume this covered by your policy. Ensure that it is included in the policy before buying the insurance coverage.
Finally, whatever you do, ensure that you keep your recorded inventory in a safe place. Creating an inventory is a tedious and sometimes costly process, especially if it involves paid professionals. Your created inventory will be of little value if it perishes in a loss.
After carefully considering the above factors, your next step is to find the best insurance to meet your needs. Representing some of the largest and oldest insurance companies in America, Fox Insurance Agency has earned an outstanding reputation from residents of Beaverton, Portland and the surrounding communities of Oregon and Washington. For comprehensive homeowners insurance quotes, get in touch with the experts at Fox Insurance Agency as soon as possible. Your homeowner’s insurance agent is in the best position to advise you on the most appropriate policies that will fit your situation. Different insurance companies have different valuation methods, which affect the replacement cost of your house. Talk to your Fox Insurance independent insurance agency specialists to determine your need for homeowners insurance and the best fitting insurance policy for you! Contact Fox Insurance Agency for a quality and reliable home insurance and auto insurance policy in Beaverton, Oregon, Portland Oregon and beyond!
The information in this article was obtained from various sources and is not all inclusive regarding the subject matter. This content is offered for educational purposes only and does not represent contractual agreements, nor is it intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. The definitions, terms and coverage in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.