Are you buying your first home? Are you wondering why your home insurance premium has jumped up so dramatically and starting to shop around again? Finding the right insurance policy means balancing your costs with the ever-present possibility that some day, you might have to make a claim. The last thing you want is to find yourself underinsured when that happens.
What Happens When You Make a Claim?
Before you choose an insurance policy, you should know why it’s so important. If you are underinsured, your claim may not cover the costs to repair your home.
There are many reasons an insurer may not provide sufficient funds after a claim. To use a fire insurance claim as an example, they may miscalculate the cost of repair work or over-depreciate lost belongings. In those cases, you can enlist the help of insurance lawyers.
With the help of insurance lawyers at Virani Law, for example, a firm that specializes in helping homeowners negotiate their claims, homeowners get advice on how to proceed with every step of their claim.
What Does Home Insurance Cover?
When you are insurance shopping, you will want to know what home insurance covers and what you want it to cover. A standard policy should include:
- Dwelling coverage to repair the structure of your home;
- Personal property coverage to replace lost or damaged belongings;
- Additional living expenses coverage to cover the costs of short and long-term rentals and other costs associated with living elsewhere while repairs are done;
- Personal liability in case you’re sued due to injury or personal property damage on your property.
Then you have to consider the perils that your policy will cover. Common perils include fire, lightning, wind and hail damage, water damage, theft, explosions, vehicle collision, and snow. However, there are some perils that are often excluded, such as flooding, sewer backup, earthquakes, and others. You may need to take out additional coverage to protect your property from threats like these.
Understand Your Home Insurance Premiums& Deductibles
If you’re trying to save money on your policy, you’re likely looking for the lowest premiums you can get. However, that can leave you short if you have to make a claim. There are a couple of ways you can be caught underinsured:
- The deductible is higher than you expect;
- The damages are higher than your coverage limits.
A lower deductible and a higher coverage limit will raise your premiums, but it may be worth it.
How to Save Money on Premiums
Knowing how dangerous it can be to take out too little, how can you save on premiums without jeopardizing your finances in case of a loss? There are a few factors to explore:
- If the home is new construction, ask about discounts provided for new builds;
- Bundle home and auto policies with the same insurer for a discount;
- Talk to your insurer about upgrades such as a new roof or fire safety measures;
- Hike your deductible if you’re confident that you have enough emergency savings to cover it.
It may also pay to shop around every few years, as different companies have different guidelines. Just remember to look at more than the price. Make sure you’re getting the coverage your home needs.
Be First to Comment