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Home Insurance Tips: Home Owners Guide To Total Coverage

Home Insurance Tips: Home Owners Guide To Total Coverage

Whether you are in the real estate business or not, you soon in life find out that homes are some of the most treasured personal investments someone can make. Given that that is the only place where mixing business and pleasure is allowed, you are bound to ensure that your dream home, which is also a major investment, is well protected from all and sundry. This place guarantees your comfort and safety. In turn, you should ensure that these two are never compromised. Below is a guide on how to ensure that you take the right insurance cover and enjoy total coverage.

Home Insurance Tips: Home Owners Guide To Total Coverage

  • Understand how Insurance Works

A good example is how flood insurance works. Given that in 1968 it was established that flooding is the most common disaster in the United States, the National Flooding Insurance Program chose to legally define flooding as “a general or temporary coverage of an acre or two of normally dry land or property by water”. Having said that, it would be safe to assume that if you live in a flood prone area, you require such insurance. Some terms like actual cash value and replacement cash value are some of the terminologies you might come across. Depending on what you have decided on, you will have to check if they strive to restore your home to the original setting or otherwise. Buildings are covered 80% of the RCV whilst the contents therein are covered on ACV.

What do they cover and what do they not? In most cases, the building and contents are usually covered. However, some content like precious metals, money and stock certificates are not covered. It would be wise to have another policy cover such items. Vehicles and business loss is not covered under the flood insurance.

  • Understand the Basics

It is up to you as the homeowner to ensure that once you realize you need flood insurance, to also get to know the basics that come with such policies. This will not only help you interpret the policy correctly but also meet the required standards. For instance, in high-risk areas, homeowners on mortgage are required to take flood insurance as a necessity. You will also understand that the federal government does not sell the policies directly to the homeowners but goes through agents and it is up to you to find the right one to deal with. There are other multiple basic knowledge issues you are bound to understand and you should not ignore them.

Your home is a lifetime investment that with time can also become a business investment. You should therefore strive to add value to it rather than have it depreciate. Therefore, instead of looking to save money by not taking up an insurance cover and later suffering greatly due to a sudden flood, make that informed choice and take up the insurance for your home. You would rather spend a few hundred dollars per year and be safe than save them and always live in constant fear of what if you suffer.

Author’s Bio

 Justin is a local executive who deals in real estate, car and home improvement products. He is a self-made independent person who prides himself with making his society a better place. He at times volunteers at the hospital where he helps on weekends.

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