All About Affordable Home Insurance
Why Do You Need?
Why you need home insurance is not a very complex question. The reason that you need it is that home repairs are extremely expensive. When you purchase a home insurance policy you are getting insurance that will help you cover those expenses. Say, for example, that a tree falls on your garage. It could cost upwards of $20,000 to replace that garage. Now if your insurance policy could cover all or at least most of that, you would be very happy! It is very much worth it to get home insurance coverage for many reasons and that is just one of them. Home insurance also covers you in case someone gets injured on your property. It will help you if you get sued by them, or if they need help paying their medical bills. In some cases home insurance even covers you if you accidentally damage something on someone else’s property! It’s amazing.
Insurance Quotes
There is a lot that goes into making up your home insurance quote. Many factors are involved and each quote is individual and customized. What are the different factors that go into a home insurance quote? Let’s find out.
The Deductible
Your deductible is a significant portion of your home insurance rate. If you have a low deductible expect your rate to be a little bit higher. If you have a high deductible your rate will be lower but make sure you actually have that capital needed to pay the deductible. Around $1,000 is the usual deductible but they can go as low as $500 and much higher than $1,000.
Dogs
If you own a dog your insurance policy might be higher. That’s because dog bites are one of the things that home insurance liability covers. If you have a certain breed of dog that is typically known for being aggressive or mean like a pit bull or a rotweiller, your insurance may not even take you on. So, make sure to read the fine print about dogs and dog bites on your policy!
Dangerous Items
If you have certain dangerous items in your home like a wood-burning stove or a trampoline you may have trouble getting any type of home coverage at all. It’s likely that the coverage you do get will exclude any accidents caused by these items. They are things that are more likely than others to cause damage to the home, which is why insurance companies tend to steer clear.
When Your Home Was Built
Newer homes and homes that have had a lot of remodeling and refurbishing work may have lower home insurance rates than older homes. New wiring means less chance of fire and less things that are likely to go wrong and cause damage. It could be worth it in the long run to do some work on your house to get it covered!
Smoking
Quitting smoking is the number one thing that will get your home insurance rates - and a whole lot of other things in your life lowered. Smoking is a big cause of home fires, because people fall asleep with their cigarettes in their mouth and it causes a fire. Also, having lighters and matches around is also conducive to starting fires and danger.
Location
The location of your home is very important to the price of your home insurance quote. That’s because if there are hurricanes or tornadoes that are likely in your area you will then have to get extra coverage for that. Location also affects rates because of things like the likelihood of vandalism.
Security at Property
When you get home insurance you can actually improve your yearly premium by implementing one or more of several home safety ideas. These are great not only because they make your home overall safer, but also because they lower your home insurance rates! If you have a sprinkler fire suppression system you will see lower rates because a fire is less likely to do serious damage. In a similar vein, smoke alarms also perform the same function. Burglar alarms and security cameras also help by lowering the likelihood of theft and vandalism. Even something as simple as a deadbolt lock on the door will give you that extra peace of mind and a bit of a discount on your home insurance quote.
Type of Insurance
There are a few major components that come with home insurance. You need to know about all of them so you will know what type of coverage that you need. Here are the basic components of homeowners coverage.
Dwelling Coverage
Dwelling coverage is what covers your home when something bad happens to it. It usually covers things like fire, vandalism and hail damage. There are many things that are not covered under dwelling coverage like earthquakes and flooding so you will have to make sure to get extra coverage for these items. When you have this coverage make sure to read the fine print.
Other Structures
This type of coverage covers the other structures on your property like fences, sheds and garages. If you live on an agricultural property this could be a great asset for you since it can be hard to keep track of everything when it is all spread apart by long distances.
Personal Property
Personal Property is a type of coverage that covers your personal belongings. If you have theft or damage you can get at least some of the value back. You will definitely want to get personal property coverage because it actually covers your belongings both in and out of your house.
Liability Coverage
Liability coverage protects you from anything that could happen on your property to a different person. If someone slips and falls on your property, they may sue you for negligence or they might need assistance with their medical bills. This will cover that.
Buildings Insurance Covers
Home insurance covers all sorts of buildings on your property. Your house, your shed, garage and even your fence. Property insurance in general can also cover your business property as long as you own it. If you don’t own it, but rent it, you would get renter’s insurance instead of homeowner’s coverage.
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