Lead by fire & water, insured damage for natural disasters hit $3 billion nationwide last year.
Protecting your property should be a major priority, whether you're a first-time homeowner or a long-time property investor. Buying a home is an exciting event in one's life, but you need to get the right insurance policy in place to protect against unforeseen circumstances.
In today's post, we'll give you a few essential home insurance tips for new homeowners. If you know what to look for, you can get insurance coverage that helps minimize the chance of hearing “that’s not covered”. Keep reading and let us guide you to the right insurance package.
Know How Much You Need
Before you start obtaining quotes from various insurance providers, it's important to sit down to figure out what you need insured. Most home policies are sold as a package that includes coverage on the house, outbuildings (garages, sheds), your contents and additional living expenses that can be used for temporary lodging after a loss.
In terms of dwelling coverage, your policy should cover the full replacement value of your home to protect against the worst circumstances. Generally, there’s a set dollar limit for your contents, outbuildings and additional living expenses. A few things that should be discussed with your insurance provider are if you have:
Contents of particularly high value items
Collections or unique items that would be difficult to replace
Replacement Cost vs. Actual Cash Value
For contents coverage, you'll need to learn the difference between replacement cost and Actual cash value. Actual cash value coverage gives you enough coverage to pay for the damaged or lost item in its current market value.
If your 5-year-old television is stolen, you'll only be covered for what it's worth today. The rest, you'll have to pay out of pocket in order to replace it. Replacement coverage is more expensive, but you'll be covered for the value of replacing what's lost to you.
Customize Your Policy
A typical homeowners insurance policy will have gaps in coverage. Homeowners in different areas have different concerns, so it's your job to figure out where the gaps are and fill them in.
Bundle, When Possible
You can save a great deal of money by bundling different insurance policies together. Bundling your home and auto insurance, for instance, is a very common and easy thing to do with a good broker.
Review Your Policy Periodically
When you purchase insurance, that's not the end of the story. Review your policy at least every year to determine if you've got too much or too little coverage.
Any alterations to your home or changes to your neighborhood conditions can alter how much insurance you need. You could potentially lower your premiums or risk not having enough coverage. If you don't review your policy, you won't know.
Taking Home Insurance Tips to Heart
As a brand-new Moncton homeowner, there's a lot you'll need to think about for the first time. These home insurance tips will guide you through what can be an overwhelming process. What helps, however, is having the right insurance broker advising you.
Jones Insurance Service Ltd. has been a helpful presence for Moncton homeowners for over 110 years. Get in touch for friendly, local, personalized insurance service for your new home.