It can be a challenge to find house insurance that covers all of your needs while still matching your budget, and the most efficient way to go about this is to make a homeowners insurance comparison. What follows are some frequently asked questions about homeowners insurance that will help you navigate your homeowners insurance comparison effectively.
How do I know whether the limits of the offered coverage are high enough? It’s impossible to make an accurate prediction of the replacement value of your home five to ten years in the future, or to know exactly how much it will cost to repair the roof if your home is struck by a hurricane in a couple of years. Call your realtor and discuss future replacement and repair costs, and ask him to take the inflated costs of materials and repairs into account.
Should I choose a higher deductible with lower premiums, or higher premiums and a low deductible? This is a highly personal choice and one that depends on your finances and comfort level. If you always have enough cash to pay the higher deductible, that’s an excellent choice, because if you’re lucky, you might not ever have to pay it. But if your finances aren’t quite so generous, choosing higher premiums could save you tense moments wondering where you’ll get the cash in the event of a claim.
Do I need flood insurance? Flood insurance isn’t part of your regular home insurance policy, so if you live in a flood-hazard area, getting a separate flood insurance policy might be a wise precaution.
Flood insurance is a policy that is provided by the federal government for people who wish to protect their investments from a flood. In some cases an insurance company will require a policy holder to have flood insurance before they will insure the home. In other cases homeowners are not required to purchase flood insurance. So how does one decide whether or not they need flood insurance?
One way to decide about flood insurance is to find out in what flood zone the house is located. A flood zone A is the worst flood zone in which a home could be located. It means that the home is more likely to have a flood destroy it than a house located in a flood zone X. A flood zone X is the best zone in which a home could be located. This means that it is not as likely that the home will be flooded anytime soon. However, a flood can happen at any time and at any place.
Another way to decide is to find out if your insurance company requires flood insurance on the property. Most homes located in a flood zone A will be required to have a flood insurance policy in force before they will insure the home.
Lastly it comes down to preference. If your home has been flooded in the past then it may be a good thing to carry the policy. However, if the home is located in an area that has never been flooded then you will have to think about the realistic possibility of a flood happening in the future.
Selecting the right homeowners insurance can be an overwhelming challenge. There are many factors to consider, such as the location and the size of your property, the contents of your home, and even legal requirements for homeowners insurance.
Fortunately, websites like AgentInsure can connect you instantly with a licensed insurance agent in your area who will provide you with a free quote on the best deal for your situation. However, when you speak with your agent, it’s always good to have some understanding of what your homeowners insurance policy should cover.
This past September, the New York State Superintendent of Insurance, James Wrynn, announced the release of the 2010 Consumer Shopping Guide for Homeowners and Tenants Insurance. This easy-to-read guide is full of useful information and helpful tips about homeowners insurance. For example, did you know that homeowners insurance doesn’t cover floods? If you live in an area that’s prone to flooding, you’ll need to purchase a separate flood insurance policy.
The guide addresses issues like the different procedures for deductibles, as well as mandatory requirements for insurance policies depending on location. Coastal areas require particular attention due to varying policy thresholds for exclusion of damages. The Superintendent pointed out that homeowners’ needs change, and people should adapt their insurance to match their needs. This guide, which can be downloaded from the New York State Department of Insurance’s website, will help you ask the right questions of your insurance agent so you know you’ve got the coverage you need.