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Anyone familiar with our litigious society and/or has heard of someone who had a major flood, fire, etc. knows homeowners insurance is a no-brainer for a property owner interested in protecting their family and assets. If you are considering refinancing your home, taking out a home equity loan, or purchasing a new home, homeowners insurance is mandatory.
One of the biggest issues insurance agents are confronted with is a policyholder who thought they were covered for something they were not. For some, buying a policy means complete coverage to them, when in reality, there are certain things that, if they occur, will not be covered. Other times, something may be covered, but for the current value and not for replacement (think automobiles). Other misunderstandings come up when natural disasters occur. Earthquake and flood insurance, to name two coverages, are not included with standard homeowners policies.
Here are some ways to (possibly) lower your homeowners insurance premium: 1) Maintain a Security System and Smoke Alarms; 2) Raise Your Deductible (although that may be more money out of your pocket later); 3) Look for Multiple Policy Discounts (bundle your homeowners, auto, etc.); 4) Plan Ahead for Construction; 5) Pay Off Your Mortgage (obviously easier said than done), and 6) Make Regular Policy Reviews and Comparisons.
Every homeowner dreads a liability claim. Someone slips and falls on your property, the roof caves in on your guests, a tree branch crashes though a neighbor’s window, etc. Liability claims against your policy have limits that could leave you paying a bundle. Maybe property is covered but not bodily injury. How high are your limits? Maybe you need an umbrella policy. Take a few minutes and talk with your insurance professional about what your homeowners policy does and does not cover… before it’s too late.