Whether you have just moved into a new place or the search is on for that dream home, you will want to make sure that your insurance is already lined up. It may not be a legal requirement but any homeowner who fails to invest in this insurance is making a rod for their own back. We often get a lot of questions from people who are either looking to find or upgrade their homeowners policy and so we spoke to Jared Syel farmers insurance expert and a man who knows the insurance industry very well indeed. Here Jared gives us some tips on what you should be looking out for when you want to find great homeowners insurance.
Whether you live in a flood zone or not this is an addition which you should make to your homeowner insurance. Flood cover doesn’t come as standard yet it is something which statistics suggest you may need. “90% of all natural disasters in the U.S. involve flooding,” Jared says. “Surprisingly however, 25% to 30% of all paid losses for flooding are in areas not designated as flood hazard zones”. Earthquake insurance is also something which you may wish to consider.
If you have a swimming pool on the property then you should seriously consider looking into boosting your liability insurance. Unless you add your pool on separately you will have difficulties, especially if an accident is caused. If someone drowns in your swimming pool and you don’t have additional cover, you could be in for a long lawsuit.
When it comes to home insurance, much like auto insurance, you will find that the higher the excess, or deductible, is on your policy, the cheaper that your overall premium will be. Now whilst there will always be the argument of ‘what if something happens, it will cost more in the long run’ and this is indeed a valid claim, the majority of people will spend their whole lives making less than 0.5 claims on average. This means that if you roll the dice ever so slightly and opt to pay a lower premium and a higher excess, the likelihood is that you will save money in the long term.
Cost of Your Home
It is also important to remember that the actual cost of your home is not the same as the current market value nor its original price. The replacement cost of the home is the amount that it will cost to rebuild your home on its current property. This means that the replacement of your home will not involve the cost of the land on which it is built nor will it involve any premium that you may have paid on your home. In 99% of cases the land on which the property is built will not be damaged, but it is essential that you understand this when doing your calculations.