How does home insurance work? There are several factors that stay-at-home moms in particular should consider when deciding what type of basic home insurance they need and how much to buy.
Damage to your home
Be sure to double check your policy and make sure you are adequately covered. You may need to purchase separate insurance for fire, flood, or other natural disasters. How does home insurance work? Many policies do not automatically cover some disasters in an effort to keep basic homeowners insurance costs low.
You can keep costs down by evaluating the probability of each event and adjusting your deductible to reflect the risk. You can often get a discount for having storm shutters or smoke detectors.
The damage to your home could be small enough to warrant a DIY repair rather than file a claim and watch your rates skyrocket. A minor roof damage with no leaks or structural damage is often no reason for a completely new roof. You may find it better to climb and re-shingle the affected part.
In the event of major damage or total home loss, make sure your policy covers emergency housing. A hotel is preferable to a shelter, especially if you have children.
Robbery and Theft
How does home insurance work? If someone breaks in and steals all your electronic devices, your jewelry, and your prized purebred cockatoo, you may never get back the feeling of your lost property, but you should be able to replace its monetary value.
The number one way to make sure you get a proper reward is to keep receipts for anything valuable you buy, take a picture of it too, and keep both with a copy of your policy in a safe place.
For some items, insurance will only pay actual cash value, so consider getting replacement value insurance for items like expensive televisions or computers. Items of very high value, such as a diamond ring, may be subject to limitations unless you obtain a rider in your policy that covers that specific item. The insurance company will want an appraisal for the passengers.
You can usually get a discount on the personal property portion of your policy if you have a security system.
Civil liability coverage for accidents
If a guest in your home is injured, the injured party can file a claim on your basic homeowners insurance policy. It is very, very important to have adequate liability insurance if you have children and their friends come over to play on a regular basis.
An umbrella policy will cover claims of up to a million dollars, but be careful when advertising the fact that you have high coverage; Some people are unscrupulous enough to fake a fall if they think it’s worth suing!
Umbrella policies are an especially important option if you have a dog, a swimming pool or a trampoline in your yard that could pose a danger to visitors.
Many Americans don’t even know what they’re covered for or how homeowners insurance works, and misconceptions abound. Making sure you have enough coverage is just responsible!
Make sure you know what you’re covered for and where you’re vulnerable, and consider what homeowners insurance you should have to cover each eventuality.