The largest single most important investment most people will ever make is buying a home. An important part of home ownership is protecting your property to the best of your ability. In order to protect your property, the right amount, and type, of insurance coverage is imperative.
A homeowner needs to protect his family, his home, and his possessions in a way that makes good financial sense. In many cases, when an unforeseen event happens, homeowners find themselves with too little insurance or insurance that does not cover the event at all. It is always a good idea to to take the initiative to read and fully understand what an insurance policy covers and what it does not cover.
Typically, a homeowners policy insures the dwelling, other structures on the lot, and the contents in those structures such as furniture, jewelry, antiques and collectibles, computers and software, firearms, dinnerware, clothing, money, and other personal property.
The policy will usually cover fire and smoke damage, theft, water damage, vandalism, and personal liability claims such as injury and medical payments to others who are injured on the property.
What the policy will probably not cover are earthquakes, floods, mold, and general wear and tear. Most insurance companies offer earthquake and flood coverage along with other protections, but as separate intities at additional premiums.
There are certain things that you should do when buying a homeowners insurance policy:
Shop around for the best policy that fits your needs. Always compare prices, service, and coverage.
When completing your application for a premium quote, have the most accurate information on your property for the insurance agent.
Before signing an application or finance agreement, read all documents and make sure you are getting what you think you are getting. If you have reservations about something that may or may not be covered in the policy, ask questions and don't sign the contract until you fully understand it.
Keep a copy of all signed documents for your records. Put them in a safe place.
When you get your policy, read over everything to make sure that the coverage, premiums, limits, and all other information is correct before you file the policy away.
Read and understand your rights and obligations and also the rights and obligations of the insurer under the terms of the policy. The rights of the insurer is very important.
Keep an updated and accurate inventory of your personal possessions. List the dates of purchase, the price, and take pictures and videos of your home and property.
Keep your records in a safe place, and update your inventory and records periodically.
Preparation for unforeseen losses is a homeowner's best game plan for his property and for his family. A good homeowners insurance policy can help minimize the impact of losses due to accidents that cause damage and/or personal injuries and it gives the homeowner a reasonable degree of confidence that if something does happen, he and his family will be protected.