HOME INSURANCE INFORMATION

Since your home is your single largest investment, it should be adequately insured in the event of a disaster. So before shopping insurance companies estimate the value of your home should it have to be rebuilt and consider the following suggestions:

1. Do not insure your home for the market value, because the cost of rebuilding your house may be higher than the price you paid for it. Do not limit the insured amount to the mortgage balance required by the lender and do not forget to increase the limit of your policy if you are making improvements.
2. Homeowners who guard against theft, accidents and other losses often get lower insurance rates so install dead bolts and window locks, smoke detectors, sprinkler system for fire or alarm system to alert local police and the fire department. You may receive premium discounts when you buy both homeowners and auto insurance from the same company.
3. Liability coverage for injury or damage to others and/or their property is part of your homeowners insurance policy but has substantial liability limits. Multimillion-dollar lawsuits today have people adding umbrella supplements for protection.
4. Adequately insure your personal belongings for replacement cost coverage (no deduction for depreciation/maximum dollar limit) or for actual cash value (the amount equal to the replacement value minus depreciation).
5. Everyone lives in a flood zone because floods are caused by storms, hurricanes and any type of water backup. Your lender will indicate if you are required to carry flood insurance based on low to high risk factors. Flood insurance is affordable and contents coverage is often separate.
6. How much deductible should you carry? The answer to this question must be determined by the amount of cash and credit you have available. Remember—The higher the deductible the lower the premium, but the more you’ll pay out of pocket in case of a claim. The lower the deductible, the higher the premium, but the less you pay if you have a claim.
7. Mortgage life insurance is designed to assure that, in the event of your death, your family can remain in the house they love. Discuss this with your family to determine whether or not to include this optional coverage.

When shopping companies be sure you compare apples to apples. Quotes with different deductibles and coverage features will not result in a fair comparison!

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