You think it never will happen to you. Surely you never will have a fire, theft, storm, or accident in your home. But, if the unthinkable does happen, you’ll want to have homeowners insurance to protect you. Homeowners insurance is there during your times of greatest need to protect what is probably your biggest asset. So, is it necessary? By all means. Not only for you, but it’s usually required by your mortgage lender. Before we consider that, let’s look at what a typical homeowners insurance policy provides.
Homeowners insurance provides coverage to your home, coverage for your personal belongings, liability protection, and additional living expenses.
Your homeowners insurance pays to repair or rebuild your home and other structures from damage that is covered in the policy, most often including theft, fire, storm, or other natural disasters.
When deciding a coverage amount, it’s a good idea to make sure you have enough to completely rebuild your house. Get a quote from a local builder or real estate agent for an approximate amount.
Damages can be covered at cash value or replacement value. Cash value pays what the property is worth today with depreciation, while replacement value pays enough to replace what you lost.
Furniture, clothes and other contents of your home that are stolen or otherwise destroyed by an insured event are covered by your homeowners insurance policy.
You can choose to have off-premises coverage so your items are covered anywhere in the world should they get lost or damaged.
Making a video or photographs of your home’s contents can be extremely helpful. If you ever need to submit a claim, it’s an easy way to remember and prove what you lost.
The liability aspect of homeowners insurance covers your legal responsibility for injuries to others or their property. For example, let’s assume your neighbor falls down your front steps and breaks her arm. Your liability insurance will cover her medical expenses up to the policy limit.
If she decides to sue you for damages, you also will be protected, up to the limits in your policy.
Liability insurance is not limited to your premises. So, if your dog bites your neighbor while out on a walk, your homeowners insurance policy will likely cover you.
If you’re unable to live in your home due to a fire or other insured incident, your homeowners insurance policy may offer additional living expenses, including hotel and meals, up to a certain limit detailed in your policy.
There are limits to a homeowners insurance policy. Homeowners insurance doesn’t cover damage caused by flood, earthquakes, or normal wear and tear of your home. Be sure you review your policy so you know what’s covered.
Mortgage lenders require homeowners insurance to protect them. Should something happen to your home, they need a way to cover their large monetary loss. Lenders often require you to buy at least a minimal amount, usually the amount of the mortgage. But, as you consider your home and belongings, more than minimum protection may be a good idea.
You don’t have to be a millionaire to have high value assets. Perhaps you own fine jewelry, a grand piano or a prized collection? Your keepsakes with high monetary value — family heirlooms and other personal belongings — are important to you.
Owning expensive things can be enjoyable for you and your family but also carries some risk. To protect what you own, it is necessary to understand what coverage your homeowners insurance offers for your high value property.
Standard homeowners insurance often has limits on the amount of coverage available for valuable property. If you own things that would be expensive to replace, your homeowners insurance may not provide the full coverage you need to pay for costly replacement items. Limitations can apply to individual items and categories of items. When the value of a collection is high, additional high value assets insurance can be needed to adequately cover its worth.
While standard homeowners insurance has limits on the amount of coverage available for individual personal items, your policy can be tailored to cover your high value property. Scheduling can protect your valuable personal property in ways that standard homeowners insurance cannot. Coverage for high value assets can be provided for all risks, including breakage and theft.
It is important to understand the full value of items and protect what you own. Scheduling can be used to provide full coverage for a wide range of items, including:
Many people own valuable property and are unaware of just how much it is worth. Maybe you did not even purchase your keepsakes; they were inherited or given to you. Even if you purchased a valuable item, its value can fluctuate over time. A credible appraiser can be helpful. Although some cost is involved with a formal appraisal, this can be money well spent for any serious collector.
A thorough and accurate assessment of your valuable property today can make handling a claim a much more efficient process should the need ever arise. First, compile a list of all of your valuable possessions. Make a detailed list of everything valuable you own, take photographs of the items and store the list somewhere outside of your home in a safe deposit box or at a friend or relative’s residence.
Record all valuable items as you go through your part of your house room to room, including the basement and garage. List the name of the item and a description as well as brand name if applicable, the date purchased and any appraisals. This same process can also be used to provide an overall home inventory for your regular homeowners insurance that includes more standard possessions.
Once you have completed your home inventory taking note of high value items, a yearly assessment can update changes in your possessions and their value. Updated information about your possessions can keep your coverage fitted to your changing needs.
Scheduling offers coverage when broader protection is required. It can be reassuring to know that your most valuable possessions have full coverage in the event of unexpected loss due to fire, theft or damage.
When you’re already paying several insurance premiums to different providers, it makes sense to bundle the rates. The best reasons to switch your current insurance policies to one company are that you will save time and you will save money.
Are you looking for easy ways to save time and money? Then, you should learn more about combining the various types of insurance you have with one insurance company to take advantage of a multi-policy discount.
You may qualify for a multi-policy discount if you have one or more cars and an apartment or home. But it might be up to you to ask your independent insurance agent about the discounts available to you.
Let’s see what kind of insurance policies you can bundle, why it’s beneficial to get a multi-policy discount, and what you can expect to save by consolidating your insurance premiums under one provider.
It’s simple, if you have multiple policies with one insurance carrier, you’ll see less paperwork and fewer bills. You’ll not only save yourself time, but your insurance company saves time too, which is one reason they offer the discount in the first place. When you’ve got a multi-policy discount, you’ll conveniently be paying just one insurance provider for your insurance needs.
The multi-policy discount you receive will depend on which policies and how many you bundle with your insurance company. Your discount will also vary from provider to provider. Usually, your multi-policy discount could save you up to 15 percent or more on your insurance rates.
There are plenty of things you value in life: your car, your home, your health. Insuring yourself against the worst is important, but it doesn’t have to be time-consuming. When you bundle your insurance policies, you’ll save money on the things that are important to you.
Pella Insurance will help you take the fuss out of paying for multiple policies and find the provider that will give you the best multi-policy discount for you. Contact us today to find out what policies you have that qualify for a multi-policy discount.