When you are buying a home, and getting a loan to pay for it, your lender is going to require that you adequately insure the property. This is protection for them if something happens to the house that could affect their investment. It also protects the money you have invested in the house as well. Many new homeowners don't really understand what is actually covered in a homeowners insurance quote Tucson AZ agents give them, or the ways they can save money when buying a policy.
Not all policies are alike. If you were quoted the price for an HO-3 policy, the agent was quoting the coverage most commonly purchased by new home buyers. It will cover you for open perils. Open perils include tornadoes, fire, and theft. It covers your house and your personal personal property. HO-3 doesn't include all kinds of perils however. A more comprehensive plan is the HO-5. This policy will cost more but may be worth it if you have assets of significant value.
You need to understand the amount your policy will pay if you ever have to file a claim. If you have cash value coverage it will pay to replace or repair your property up to the policy limits, minus the deduction for depreciation. This is the least expensive, but probably won't be enough to rebuild from the ground up.
A replacement cost policy is more expensive but doesn't deduct for depreciation. Extended or guaranteed policies replace property regardless of the policy limits. You don't want to add land value to a homeowner policy. It will increase your payments for no reason.
Your policy doesn't cover all types of damage. Hurricanes, tornadoes, and windstorms are normally covered. You will probably have to add earthquake coverage to your standard policy. Homeowner's insurance does not cover floods. You must purchase a separate policy to get this protection. Your property has to be properly maintained for the insurer to approve a claim. If you own a dog, you need to discuss whether or not it is a breed that insurers cover.
The higher your credit rating, the lower your rates will be. Even average credit will result in a policy premium about thirty percent higher than excellent credit. Those with poor credit can expect to pay twice as much to get the same insurance as those with good credit ratings. It's worth the time and effort to check and see if there are errors on your credit before contacting your agent for a quote.
Filing a frivolous claim will hurt you with the insurer. They all track client claims and share the information with each other. They can keep the records for seven years. After filing one claim you may see your annual premium increase by almost ten percent.
Insuring your home is not cheap, but going without insurance could be catastrophic. You can reduce the annual premiums. Making improvements that save costs is one way to do it. Not buying more coverage than you need is another. You should know what protection you really have before you find out too late you aren't covered for something.
Not all policies are alike. If you were quoted the price for an HO-3 policy, the agent was quoting the coverage most commonly purchased by new home buyers. It will cover you for open perils. Open perils include tornadoes, fire, and theft. It covers your house and your personal personal property. HO-3 doesn't include all kinds of perils however. A more comprehensive plan is the HO-5. This policy will cost more but may be worth it if you have assets of significant value.
You need to understand the amount your policy will pay if you ever have to file a claim. If you have cash value coverage it will pay to replace or repair your property up to the policy limits, minus the deduction for depreciation. This is the least expensive, but probably won't be enough to rebuild from the ground up.
A replacement cost policy is more expensive but doesn't deduct for depreciation. Extended or guaranteed policies replace property regardless of the policy limits. You don't want to add land value to a homeowner policy. It will increase your payments for no reason.
Your policy doesn't cover all types of damage. Hurricanes, tornadoes, and windstorms are normally covered. You will probably have to add earthquake coverage to your standard policy. Homeowner's insurance does not cover floods. You must purchase a separate policy to get this protection. Your property has to be properly maintained for the insurer to approve a claim. If you own a dog, you need to discuss whether or not it is a breed that insurers cover.
The higher your credit rating, the lower your rates will be. Even average credit will result in a policy premium about thirty percent higher than excellent credit. Those with poor credit can expect to pay twice as much to get the same insurance as those with good credit ratings. It's worth the time and effort to check and see if there are errors on your credit before contacting your agent for a quote.
Filing a frivolous claim will hurt you with the insurer. They all track client claims and share the information with each other. They can keep the records for seven years. After filing one claim you may see your annual premium increase by almost ten percent.
Insuring your home is not cheap, but going without insurance could be catastrophic. You can reduce the annual premiums. Making improvements that save costs is one way to do it. Not buying more coverage than you need is another. You should know what protection you really have before you find out too late you aren't covered for something.
About the Author:
To get a cheap homeowners insurance quote Tucson AZ insurer invites you to apply online. Instant access to the main page can be obtained through this link http://www.budget-insurance.com.
No comments:
Post a Comment