Protect Yourself!
Apr 08 '01
The Bottom Line Protect yourself and your family. You never know what can happen and when!
When we bought our home, I was clueless to "Home Owners Insurance." With a little bit of research online and by speaking with other home owner's, my husband and I were able to make an informed decision about which company to choose and what type of coverage we needed.
First things first . . .
Make sure the company you choose is available 24 hours a day, 7 days a week. They should have an "After Hours Claim Service" - You never know what may happen at 2 a.m. Be prepared to answer questions. The company will need basic information such as your address, age of home, mortgage information, and value of your house and land.
Make sure the agent you are dealing with is willing to answer any and all questions you have about your policy. If you don't understand something and he/she isn't willing to take the extra time to explain, then find someone who will. You should receive a detailed booklet of your coverage after you pay for your policy, but it's better to know what you are buying before you buy it!
Premiums
Your premium is decided upon by where you live, the value of your home and property, and the type of coverage(s) you choose. Also, you can choose a deductible which will affect how much your premium will be. The higher the deductible, the lower your premium.
Most companies will spread the cost of claims over a group of policyholders. If many policyholders in your "group" have filed claims, chances are your premiums will increase even if you haven't filed a claim. Try to find a company who values customers who have no history of claims. Some companies will put you into a different "group" to keep your premiums lower. (This can also be done with auto insurance.)
Also, many companies offer payment plans. This can vary from monthly installments (usually have a service charge - mine is $3.00 a month) to quarterly and so on. You can also pay the premium in full before the policies effective date. (No service charge) This may be a factor in deciding which company to choose if you can not afford to pay in one lump sum.
Declarations Page
Every policy has one and it is the most important page(s) of your policy. This states your agent's name and address, location of property covered, personal and medical liability coverage, deductibles, and additional coverages. If you have chosen to include personal items such as jewelry or collectables, each item should be specifically listed here.
Multi-Policy Discount
If you choose to have your home and auto insurance through the same company, you are eligible for a multi-policy discount. It doesn't hurt to compare rates to see if this may benefit you.
Additional Coverages
Additional coverages can include:
~ Sewer and Drain Back Up - This does not cover natural disasters such a floods. Flood coverage can be purchased from National Flood Insurance Program. There is usually a deductible and a limit on coverage.
~ Earthquake Coverage - Not all companies may offer this coverage.
~ Additional Theft for personal items - This can include jewelry, collectables, heirlooms, ect. Percentage varies on items.
~ Personal Computer - Additional premium is usually around 1% of the value of your computer. Coverage for a $1500 would be $15.
~ Personal Catastrophe Liability
~ Condo Coverage
~ Replacement Cost - This additional coverage will provide you with the cost to replace items, not what you originally paid for them. There is usually a set fee for this coverage.
*Depending on which company you choose, or which state you live in, not all of the additional coverages are available.
My Advice
Buying homeowners insurance should not be stressful if you do your research and understand what your needs are before talking with an agent. If you find you are unhappy with the company you've chose, you can always shop around for a better one. I've found it best to stick with one company that offers auto, home and life insurance. You seem to get better prices and better treatment!
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Member: Kati
Location: Ohio, USA
Reviews written: 123
Trusted by: 98 members
About Me:
God Bless America!
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