At Aftermath Adjusters & Consulting, LLC, we suggest that our clients review their homeowners policies at least once a year. This allows the homeowner to do three very important things. The first is to be clear about what their current policy covers. The second is to determine if they have the right amount of coverage for their home. Finally, it gives them a chance to look for the right policy at the best price.
Here are somethings to keep in mind.
1. What a Homeowners Insurance Policy Covers
Unfortunately, many homeowners buy a policy without understanding what is actually covered. Only when the homeowner experiences a loss do they realize that they don’t have coverage. A standard homeowners policy covers the following events, though be sure to check your own policy carefully.
- Water damage not due to flooding
Some policies also cover theft, legal liability if someone gets hurt on your property, and living costs if you become displaced due to home damages.
When looking over your policy each year, be sure that the policy will cover the costs of rebuilding your home and replacing your personal property. Things to consider include:
- Current building costs
- Additional personal property
- Additions to your home
2. Different Factors Affect Homeowners Insurance Costs
When getting a quote on insurance for your property, it is important that the quote is based on the actual address of your home and the actual contents found within the home. That’s because there are many factors that affect homeowners insurance costs. Here are a few to consider:
- Location: Crime rates; local building costs; probability of certain events such as hail, wind, or wildfire; distance from a fire station; distance to the nearest fire hydrant; AND whether fire station is volunteer or professional.
- Property: Square footage of the home; additional structures on the property; type of materials used in construction; the home’s features; types of roofing; AND condition of home, especially heating, electrical, and plumbing systems.
- Personal: Number of claims you’ve filed previously; any lapses in home insurance coverage on current property; AND credit history.
3. Ways to Save Money When Purchasing Homeowners Insurance
Many homeowners buy the cheapest policy, but this is not always the best idea. In addition to making sure the policy covers what you need it to cover, you should also look at the insurance company. Do they offer good customer service? Do they have a good reputation for paying out claims in a timely manner? Does the company fit your needs as a homeowner?
There are ways to reduce the cost of insurance. Here are a few to consider:
- Install safety devices: Smoke alarms, fire extinguishers, fire alarms, burglar alarms, deadbolt locks
- Use the same company for several policies
- Maintain good credit
- Change roofing materials to those that are hail and fire resistant
Finally, a homeowner can also consider increasing the deductible to lower the monthly premium. If you decide that this is best for your situation, be sure to have the deductible money tucked away in case you need to make a claim.
Understanding your homeowners insurance policy is an important part of homeownership. An annual review will help you know what your policy can and can’t do, as well as allow you to make necessary changes. If you’d like help reviewing your policy, give our team at Aftermath Adjusters & Consulting, LLC a call today. We offer a free policy review to help our clients understand what they have and what they may need.