Owning your own home is an investment for the future of you and your loved ones, it is also the biggest investment you will ever make and you want to make sure that it is adequately protected. There are several things you should consider when deciding on what type of home owner insurance you will need and which home insurance company will give you the best value for your money. The three key areas to consider are:
- Mortgage protection
- Loss of personal belongings
- Personal Liability
In a situation where one spouse or partner is a stay-at-home parent running the household and is the primary caregiver, mortgage protection should always be included in your home owner insurance policy. In the case of the sudden death of the main income earner you want to be certain that the balance of the mortgage will be fully paid to prevent your spouse or partner from losing the home. Although mortgage protection may initially cost a little more it will give you the peace of mind that in the unfortunate case of death, your family will be able to continue living in their home.
Loss of personal belongings can come about in many ways and it is important that you have a detailed list of all your personal possessions prior to making a claim. The best way to do this is to go through your home room by room remembering to include things like clothing, toiletries, jewelry and any tools or other items that may be in a garden shed or garage. Placing a monetary value on each item is important and can be calculated by assigning either a market value or a replacement value to them. The market value is what a specific item is worth at the moment and the replacement value is how much it would cost to replace that item with a brand new comparable one. This is an extremely important area and worth spending a little extra time on. If for example you purchased a new washer and dryer 10 years ago at a cost of $1,500, it may only be worth $500 or $600 in today’s market. However the cost of replacing them with brand new appliances would cost considerably more. In this case paying a little extra to have your belongings insured for replacement cost would probably be the best choice.
Another scenario may be the total loss of all your belongings due to a fire which would result not only in having to replace everything you own but also making it impossible to live in your home while it is being renovated. In such a case you will want to find out if your home owner insurance policy will pay for your family’s living expenses while you wait for repairs to be completed.
Personal liability will protect you in the event that someone who is visiting your home sustains an injury. This cost will depend on the amount of liability insurance you decide is adequate. It’s a good idea to discuss this clause with an agent who can give you a better idea of just how much personal liability is enough.
Although there are many things to consider before purchasing a home owner insurance policy there are tools that can make the process quicker and more efficient. The best place to begin is by visiting one or more online home insurance quote websites. By answering a few basic questions you will receive several insurance quotes from a number of insurance companies or brokers. Once you have done this it is recommended that you visit each insurance company website for more detailed information and always speak to an insurance agent who will be able to determine your specific insurance needs.