Understanding how to save right from the start.
Becoming a homeowner for the first time can be a daunting and often overwhelming experience, but with the right insurance tips, you can avoid common mistakes and make sure that you are receiving the right coverage at the best price.
There are several areas of your policy in which you have control over the amount you pay.
To start, make sure that you are looking into policies that include both personal property protection, as well as liability. From there, get to know the different types of discounts and savings available to you so that you’ll have the perfect coverage level at a price that you can afford.
The first and most important insurance tips for new homeowners is to know about replacement costs vs. market value.
The most common mistake that new owners of homes make is to believe that the price that they paid for their property is the same as the replacement cost. This could not be further from the truth. The replacement costs refers to how much money will be required to rebuild it from scratch, if the building was destroyed beyond repair. For that reason, that cost could be much higher or significantly lower than the amount paid to actually buy the property or that would be listed if it were to be put up for sale today.
Your policy should accurately reflect the cost of rebuilding as opposed to its real estate value.
Next, do an inventory of your personal property within your home. A typical policy will usually cover somewhere between 50 and 75 percent of the home’s replacement value, but this might not take into account some of your pricier possessions, such as your electronics, jewelry, fine art, or anything else that is expensive. If you want any of that type of item covered, pay attention to insurance tips that advise you to speak with your agent to create a separate rider on the policy.
Beyond what is covered, one of the most vital insurance tips you’ll ever learn is to understand what is not protected by your policy. One of the worst things that could ever happen is to believe that something is safe, only to discover that it is not a part of your protection.