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Are you planning to buy a homeowners insurance? Do you think you know everything about the process? No, a lot of people don’t. But luckily, then you are at the right place. The home that you are living is an abode you need to take care of not just by cleaning, but also by protecting it from disasters. So here we are to give you the best advice before you buy that insurance policy.
Hire the Right People
We are talking about the home inspectors. It is extremely important to get the right people on board for the home insurance inspection. He is the man who will provide you a definite value of the house, which makes it even more important to have the right person. A good inspector is the man who possesses attention to detail and hands over a detailed list instead of some standard bullet points. He should be able to explain you things that may have been overlooked by you. So, how long the person has been working in this field and how many companies does he work for should be known to you before hiring. Do ask for a written report at the end of his work.
Advantages and Disadvantages of Payment
It is advisable to attach your insurance payment with your mortgage payment as it is preferred by a lot of lenders these days. This way the lender will get to know the type of insurance cover you will buy to protect his investment and have a sigh of relief. Your lenders will then happily pay off the insurance premiums. Also, you may have the advantage of paying lower premium, if you are regular with your payments. Remember, insurance companies do check credit scores these days.
Well the price of the property will increase every year and your policy may fall short of the expenses you may require following a disaster. And this often gets uncovered when you apply for house insurance claims. The home materials and labor prices increase with each passing year. The right solution to overcome this problem is to purchase an extended coverage.
The Extent of Coverage
You must know what all is covered and what is not under a homeowners insurance policy. This will help you make the right claim. Usually you may have to buy a separate flood insurance or an earthquake insurance policy since it is not covered under standard homeowners insurance policies. They do not cover some damages too like mold damage and collectibles, jewelry and cash have limited coverage. So in this case, people must enhance coverage of all the things by buying a separate homeowners policy.
For your knowledge, here are a few levels of coverage explained:
HO-2 : a broad policy which protects your home against 16 disasters
HO-3 : a broad policy that protects from all disasters excluding the ones in the policy
HO-5 : for new, well-maintained homes. Covers all disasters except the ones not mentioned in the policy.
HO-6 : for Condominimums and includes liability coverage, personal property coverage and coverage of improvements
HO-7 : The policy is for mobile homes
HO-8 : the policy is for older homes. It covers real cash value only.
Above all you must understand the details of the policy bought. It is extremely important to understand the terms in order to get the right insurance claims assistance
when needed in future!