As a homeowner, having homeowners insurance is important because it protects you financially in the case that any damage is done to your home. Without homeowners insurance, you can potentially be left without a home or left with excessive damages that you will have to pay out of pocket. That's why you should know everything there is to know about your homeowners insurance that can both help you save money and ensure that you are adequately covered. Here are four important things to know:
- Preventative Actions Can Reduce Premiums: The first thing to know is the fact that if you take preventative actions, you can help reduce your premiums. For example, installing a home security system if you didn't already have one can reduce premiums significantly. You should also consider adding a fence around your pool if you have one. Doing these things reduces premiums because it puts your insurance company at less risk of having to pay for damages or other accidents that could occur on your property.
- Replacement Cost Differs from Market Value: When you are choosing homeowners insurance for your home, you will have two options, replacement value coverage or market value coverage. It's important to know the difference between the two so you know which option is best based on your current situation. Replacement value coverage will pay the cost to rebuild your entire home in the case of a serious disaster. Market value coverage will only pay you what a buyer would pay for the house based on the current market value of the neighborhood in which you live. Market value coverage is less expensive to pay for each month, but you are not likely to get as much as you would with replacement value coverage.
- Never Wait to File a Claim: When a disaster does happen, never wait to file a claim. This is important because if you wait to file a claim, it can be more difficult to prove where the damage came from and your homeowners insurance company may not provide coverage for it. On top of this, there are often time limits on when you can file certain claims. Be sure that you review what these time limits are.
- Regular Maintenance Saves You Money: If you are looking to save money on your monthly insurance premiums, one way to go about it is to provide regular maintenance for your home. If problems are found early, your insurance company will most likely pay to replace any of the issues, such as a bad AC unit, bad pipes in your plumbing system, and more. If you don't catch these problems early, it can lead to major damages that you will need more coverage for.
By knowing these four important things about how your homeowners insurance works, you can be sure that you end up with the best coverage for yourself and save yourself money in the process. Contact an insurance carrier, such as Norman Heil Insurance, for more information.