If you are like the average person, when it comes time to buy homeowner's insurance, you talk to an agent and go with the policy they feel is best for you. However, this may not be all the coverage you need. Take the time to read what the policy covers, and consider your home and belongings. While most policies will cover most things, a single policy may not be enough to cover everything at once. Here are a few things you might want to increase or add to the policy to make sure that everything you own will be replaced if there is a catastrophe.
Personal Property Endorsement
Consider how much your belongings cost you to buy. If the total comes to more than what the policy will cover, you should purchase additional coverage. Also, make sure you understand how the policy covers your things. It may pay up to a specific amount for each item and another amount for each incident. For example, your policy may pay up to $1,500 for any one piece of jewelry or $3,000 for a single incident. If you have a necklace that appraises at $5,000, it will not be replaced with this policy. Additionally, if someone robs your home and takes all your jewelry, with a total value of $10,000, you will not receive enough of a settlement to fully cover the cost.
Natural Disasters
If you live in an area that is prone to flooding, tornadoes, or hurricanes, your policy may exclude coverage for losses due to these natural disasters. The only way to have the repairs to your home covered in this situation is to purchase a rider that will provide the coverage you need. You should always make sure things like snow, water, and wind damage are included in your policy. You don't want to have to pay for a new roof because the wind caused a tree to fall on your house.
Adding riders to your insurance policy is going to increase your premium rates. However, when you consider how much you could lose if you do not purchase the additional coverage, it will be worth it. Even if you do not need to make a claim for many years, it is much easier to pay a bit more each month than it would be to have to pay for any loss all at one time. Think of it as saving money for when it will be needed.
Share11 May 2017
I bought my first car after I graduated from college. I was just about to become a teacher and needed a car to get me to and from work! I chose an auto insurance company my boyfriend used and stayed with them for many years. I always felt like I was paying too much for insurance, but I thought that was normal. One day a fellow teacher was talking about her auto insurance rate, and it was a fraction of what I paid! She told me that most companies offer discounts for teachers, and I soon learned that my company did not give me one. I switched to another company and now pay a lot less. I learned a lot about insurance during this time, so I decided to start a blog to share what I have learned to help anyone who needs the help!
