Homeowners Insurance – Make Sure Your Fully Covered

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The best type of homeowners insurance that you can buy is an insurance policy that will protect the investment you have made in your home against any kind of damage that would seriously devalue the house below the price that you paid for it. There are basically four different types of insurance policies that will cover all eventualities.

The first of these would be a policy that covers the structural integrity of the home, the second will protect your personal assets, the third will cover you against liability so if your out in the backyard playing ball with your son and the ball ends up going through your neighbors window breaking a valuable item, you are covered, and the forth one will cover you for losses you may incur should you have to find alternative accommodation should your home need to be re-built due to damage.

One of the best types of policy is called an extended replacement policy this type of insurance will replace 100% of your home and its contents at the time of damage occurring. If you should own or drive a car you can get discounts if you insure both under the one company.

A slight drawback to the extended replacement policy is that it's a little more costly, this added premium is there to off-set the ever increasing labor and material costs should your home need to be re-built. This is why its always a good idea to keep your coverage up to date each time its due for renewal so that any home improvements you make are included in any future claim should the need arise.

It is also recommended that you keep an updated list of all your personal assets these are any items that are not considered structural. Along with the list of items you should note what it would actually cost to replace those personal affects. Always keep both lists up to date.

One simple way of keeping track of all that you want to cover is by making a video recording of everything in the home. Just take one room at a time and make sure everything is recorded on film, jewelry for instance can be laid out on a dressing room table and each item caught. You would not want to miss any family heirlooms that may have been passed down and are very costly to replace, not that you can replace memories. Keep this updated as each year passes.

One thing to remember is that the cost of replacing items lost or damaged is that they will most likely cost more now to replace than when you first bought them because of inflationary rises. It is very easy to underestimate the value of your home contents if you do not keep a list of all that you own, so be sure to check every room this includes any out-buildings you may have like a garage or garden shed where you keep the lawnmower.

One of the more annoying things that insurance companies tend to ask for when you make a claim is receipts. Lets be honest here how many people actually keep receipts for everything they buy for the home? And even if you do have somewhere to keep them would it survive a flood or fire?

Homeowners insurance can be expensive but offset that against what it would cost you out of pocket to replace your valuable assets.



Source by Larry Hines