Are you buying your first home? Or maybe you’re shopping around for a new homeowner policy? Either way, it’s important to shop smart when it comes to protecting your property! Here are our top homeowner insurance tips to help you get the best coverage for your home.
Ask Questions
Deciding on a homeowner insurance policy isn’t something you should do if you aren’t completely sure. When working with an insurance provider or agent, make a list of questions you have and get the answers you need. Insurance policies can be technical, and every home is different.
A great question to ask when shopping for homeowner’s insurance is to get an outline of the claims process. This helps you prepare for what you may need if an event occurs that’s covered under your policy.
Questions about a homeowner’s insurance policy can cover additional topics like:
- What’s covered
- Potential endorsements
- Injury liability
- Cash value versus replacement cost
- Ways to reduce monthly premiums
When it comes to insurance, never just assume you’re covered – find out! Your policy is there to protect you, your home, and your financial stability. Get the answers you need and enjoy peace of mind!
Be Sure About Your Coverage
For those new to owning a home, the coverage offered by a standard homeowner policy may not cover everything you think it might. If you’re trying to minimize your monthly premium, you should pay close attention to the types of coverages you may be declining when preparing your policy.
Flood Coverage
One of the best homeowner insurance tips is to look for gaps in coverage. Think of any situation that’s remotely possible for your home and the potential costs associated with it. Flood damage is often a significant expense, but standard homeowner insurance policies won’t cover it! You need specific flood insurance coverage. Even if your home isn’t in a high-risk area for flooding, you never know when an extreme storm may overwhelm your town and lead to repairs that range in the tens of thousands of dollars!
Expensive Jewelry
Homeowner’s policies often include minimal coverage for your jewelry. This protects you from loss or theft of common jewelry items, but it’s often not enough for your most expensive pieces. Engagement rings or family heirlooms can quickly exceed the limit of your insurance payout.
If you have highly valued jewelry, you need to purchase an endorsement to add extra coverage for it. The loss of a treasured engagement ring or family heirloom is stressful but having good coverage can ease your financial burden when you need to replace it. Just keep in mind that these riders require an appraisal to verify the value of the jewelry.
Dog Liability
If you own a dog, you should also be aware of your liability! While many consider dog bites the worst-case scenario, docile dogs can cause damage even if they aren’t aggressive. Dogs frequently damage property either intentionally or unintentionally, and the damages can be significant! Likewise, even friendly dogs can sometimes be scared or aggravated into biting someone which will leave you liable for medical expenses. Ultimately, you’re responsible for making sure that you’re covered for any potential situations. Extra coverage may seem like an unnecessary expense now, but you’ll be glad you had it if it’s ever necessary!
Pay Attention to Deductibles
Anyone looking for homeowner insurance tips needs to know the importance of their deductible! Your deductible is the cornerstone of your policy, and it affects you any time you may need to make a claim.
A deductible is the amount of money you must pay before your insurance policy will pay out for a claim. This is separate from your premium, don’t mix these terms up! Your premium is something you agree to pay on a monthly basis, but a deductible only applies when you’re filing a claim.
In the short-term it may be tempting to go for high deductibles. After all, the higher your deductible, the less you pay in a monthly premium. But when the time comes where you have to make a claim, that high deductible may cost you more than the monthly premium savings! During major events or hectic seasons, you may end up needing to make multiple claims in a short period of time. Having a high deductible can make this a financial burden.
Choosing a deductible isn’t about getting the lowest monthly premium. It’s about balancing your financial security with what you find is a reasonable middle-ground. Sometimes the highest or lowest deductible makes the most sense for your situation – just think critically about it before making your decision!
Take Inventory of Your Home
Our best homeowner insurance tip for you is to keep stock of the value of your home and what’s inside. If a catastrophic event were to happen, like a home fire where you lose everything, filing a claim can become a big process.
The easiest way to simplify the claims process? Take a home inventory! Go through your home and take photographs of every room. With these photographs, note down the make, model or value of everything you can. This includes electronics, furniture, art and anything else in your home.
It may take some time to go through this but taking just an hour or two now can save you days or weeks when it comes to filing a claim for everything in your property. In addition to simplifying the claims process, this inventory can help you when it comes to adjusting your policy’s maximum coverages. In many cases, homeowners find they can adjust their policy up or down to save money or to avoid being underinsured.
Contact Iott Insurance for a Quote Today
Iott Insurance has been a part of southeast Michigan for over 50 years. We can help you plan your insurance needs and find you the right policies or plans to protect you.
Or you can visit one of our three offices in southeast Michigan:
Blissfield, MI – (517) 628-4574
Lambertville, MI – (734) 807-3825
Petersburg, MI – (734) 215-9884
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