For most people, your home is the largest financial investment you will ever make. It is a huge financial commitment. It can be an asset that appreciates in value; or not. It is a refuge, a place to raise a family, make memories, and build a future.
Homeowner's insurance seems like, and is, a far cry from summertime family gatherings and barbecue in the backyard, Thanksgiving holiday, or Christmas decorations and the holiday season. It is unappealing, but rather than believe that we could go through a month or many years unscathed we should consider that all will not be bliss and that an undesirable event could happen or worse a catastrophic one. Given our propensity to think that life will be rosy [nothing wrong with that] we should consider that the worst could happen [for your family's sake and that of your home]- isn't it natural that we give little consideration to choosing an appropriate insurance policy on our home?
When you understand the reality of insurance, you can make an informed decision on how to protect your family and your home.
You Get What You Pay For
Like with most things! Choose the cheapest policy with the higher deductible, and you will have more out-of-pocket expense. A less expensive policy could mean that other items could be excluded from your claim.
Of course it's important to consider cost when selecting a policy but read carefully the coverage options so that you have covered what's important and valuable. Consider what is offered for the premium paid until you are satisfied. Higher deductibles will save premium dollars but be sure that you're comfortable with that amount in the event of a claim.
If this is your first home then getting the deal closed is all you want to do to get your keys. Don't use this as an excuse to not consider adequate insurance coverage. It pays to compare both policies and premiums. Not all are the same. Independent agencies and the big names have their pluses and minuses. Look for an agent with whom you can develop a working relationship. This is paramount when there is a question or making a claim.
Hurricane, Flood, or Earthquake
Newer and even previous homeowners are surprised that these types of insurance are separate from a standard insurance policy. Hurricane coverage can be listed in your homeowners policy but with a separate deductible. Flood insurance and earthquake are purchased separately. Your local insurance agent can guide you in the selection of these types of insurance.
As I said earlier, don't believe that you might not get hit as hard as others or that the event will not reach my area. We have watched the devastation caused by recent hurricanes; and our heart aches for those affected, yet we are grateful that we are here in California. But we all know, that fires rage every year and though we have frequent minor earthquakes we wonder when the "big one" is coming. One thing's for sure, the 'experts' agree it's coming!
Life is unpredictable. We are never completely prepared. But, with the proper insurance policy we should be in a better position when we need to file a claim. We hopefully, will not experience a severe financial setback. Talk to your agent about your policy and your coverage.
I want to emphasize that I am not by any means an insurance expert, but I do know real estate. Let's talk if I can help you with that!