Finding insurance for an older home does not have to be difficult. There are many companies that specialize in older home insurance coverage for an affordable price. You should always compare quotes to find a rate that fits your budget and your needs.
Whether your home is 20 years old, or considered an historic home, the insurance needs will vary compared to new homes. Homes that were built many years ago may have out dated building materials or tile and crown molding that can no longer be found. For this reason, many home insurance companies will not insure an older home. You will need to find a plan that specializes in older properties and will give you the coverage you need.
Insurance policies are listed from HO-1 to HO-8. An HO-1 policy is basic and only covers the bare necessities. If you live in a newer home, you probably have an HO-3 plan. Most older homes, on the other hand, will require HO-8 coverage. Many insurance companies will insure an older home for the market value. Unless you live in a historic home, you probably would not want to re-build the house using all of the outdated materials anyway. By insuring the home for the value, you will pay a lower rate and you will still be able to replace the home.
Many companies may also offer a better rate by not insuring the old plumbing or electrical systems. This would mean that if a fire or flood occurred because of the plumbing or electrical, the insurance company would not take care of the damages. Although this type of policy might save you money each month, in the long run, if there was a problem, you would be left paying for the damages out of pocket.
The best plan of action is to find companies that specialize in policies for older homes. Comparing the rates of several insurance plans will help you find one that offers the protection you need for a price you can afford. People often enjoy living in their childhood home, but don’t always consider the special considerations that go into living in older homes. Make sure you are prepared for any type of disaster with a great insurance plan.
If you’ve got tornado insurance coverage and you haven’t had to use it yet, consider yourself lucky. But even if you do have to use it, you’re in a far better position than someone who isn’t insured under the same circumstances. Having home insurance coverage to be able to rely on at a time like that can be a lifesaver, both physically and emotionally.
As you’re dealing with your insurance company in the aftermath, it’s important that you stay very involved in the process. For some, there’s a tendency to just let go and let the insurance company take control – it can be comforting to do that, and to relax in knowing that someone’s acting on your behalf as an advocate to put a roof back over your head. But there are some stark realities you should consider, chief of which is the tendency by some home insurance providers to underestimate the amount of damage done, and therefore the amount of money they pay out to you.
If you feel that your home damage has been undervalued by representatives of your home insurance company, you’re well within your rights to get a second opinion. Doing so won’t forfeit your right to coverage, and is standard practice when events as devastating as tornadoes occur. In order to ensure that this doesn’t happen in the future, be sure to review your level of coverage when comparing insurance quotes to set in place an accurate value for your home and its belongings.
Quality insurance coverage is something that every homeowner wants – and if this isn’t on your top list of priorities, it should be. Remember, comparing insurance coverage by cost isn’t the only thing you should be looking at when you’re shopping around. If you’re thinking about changing homeowners insurance providers, you might want to consider raising your level of coverage. Here’s why.
Rebuilding Costs are on the Rise
This is something to take into serious consideration when you’re determining your level of coverage. If a disaster were to strike tomorrow, would your current insurance policy pay enough to cover the price of rebuilding from the ground up? In a lot of cases, it won’t be. Always take into consideration the current cost of home replacement when you’re comparing insurance premiums, and not necessarily the market value of your home.
If you’ve done any sort of remodeling to your home, this is another reason to raise your level of home insurance coverage. Renovations can increase a home’s value dramatically, and should play into every decision you make about how much coverage to get if you’re changing homeowners insurance companies.
Always ensure that you strike a balance between quality insurance coverage and out of pocket costs. Just because you’ve landed a sweet deal on home insurance that’ll save you $50 per month doesn’t mean that you’ll be in good shape if the unthinkable should happen and you find yourself without a roof over your head.
The insurance coverage for your home in Texas may be totally different than that of other Texas residents. A lot of things can make a difference, including in area in which you live. Because of this, you can’t always rely on what your friends or family members have in the way of home insurance coverage. You may not need as much coverage as they have, or you may need more.
For example, take where you live in Texas. Texas has coastline, prairie, and desert areas. In addition, it has urban, suburban, and rural areas. Each of these areas has its own particular hazards that may affect your home insurance coverage. The coastline can be the site of major hurricanes or tropical storms. These storms can cause widespread flooding and major property damage.
The prairie, rural, and desert areas may have wide open spaces that aren’t close to fire protection. Droughts or lightning storms can often cause wildfires that can spread quickly and engulf your home.
Even in the urban and suburban areas, certain circumstances can impact your home insurance coverage. Crime statistics, the type of police protection (municipal, county, or state) you have and the type of fire protection (paid or volunteer) you have can all make a difference in the coverage that you are eligible for on your home.
No matter where you live, the materials with which your home was built or were used in remodeling can affect home insurance coverage. Some materials resist weather and fire damage better than others, and this can make a big difference in the premiums you pay and what your policy may cover.
Recent events across the world – in places as far away as Japan and as close to home as Tennessee and Alabama – are serving as sobering reminders that often, the home insurance coverage we think will protect our homes from just about any threat under the sun is simply not enough. Do you live in an area of the country that’s at risk for earthquake, hurricanes, and flooding? If so, there’s no better time than now to get a homeowners quote for supplemental insurance coverage.
These are the facts as you may not know them:
• Standard home insurance coverage does not cover you for damages that occur as the result of an earthquake. If you live in a geographical region where the threat of earthquake is a daily consideration, getting a homeowners quote for supplemental earthquake insurance is a wise move.
• Homeowners insurance will not cover your home or your property in the event of a flood or hurricane. Although you may not ever have to worry about hurricane insurance if you live in an inland state, your region may very well be susceptible to flooding.
You can buy supplemental earthquake, hurricane, and flood insurance if you live in an at-risk area. Taking steps by getting a homeowners quote for these extra coverages could save you from catastrophic loss down the line.
Before you compare home insurance quotes any further, first listen to this news flash. Did you know that many home insurance companies offer discounts to customers that aren’t carrying a mortgage? What this means is that if you’ve recently paid off your house and are still paying the same amount of money for your home insurance premiums, you might be paying far too much.
The main reason homeowners who have their houses paid off get home insurance at cheaper rates is because they’re seen as less of a risk when it comes to insurance claims than, say, someone who is upside down in debt.
This nugget of information probably comes as a big surprise to those who haven’t carried a mortgage in years but have been paying the same rates as everyone else. It might even be cause for a bit of justified anger. But is it really the insurance company’s fault? Think about it. Unless you inform your home insurer that you’ve paid off your house, they have no way of knowing.
If anything, this scenario serves as a perfect example of why it’s important to review your home insurance coverage every year, and to take into consideration what are called “major life events”—and if paying off your mortgage isn’t a major life event, then what is?
Even if you’re fully satisfied with your current home insurer, it’s smart to compare home insurance quotes on a regular basis. You don’t have to make this a weekly hobby, but doing so once a year—maybe a month ahead of paying your yearly premiums, for example—is a smart idea.
If you’re considering dropping your homeowners insurance coverage to save money, think again. Doing so is a bad idea on many levels, the least of which could be financial ruin if your home experiences damage beyond your ability to repair it. Although you’re not required to have homeowners insurance by law, your mortgage company requires you to maintain a certain level of coverage in order to stay within the terms of your loan.
What happens if I let my homeowners insurance lapse?
Don’t think that you can quietly let your home insurance coverage lapse by conveniently neglecting to make payment by the designated due date or by the outright cancelation of your policy. Issues this big rarely get ignored. The first thing that’ll happen—after you receive a friendly letter or phone call from your insurance company letting you know that your coverage has been canceled—is that the insurance company will contact your mortgage lender to give them a courtesy “heads up.” Soon thereafter, expect to be contacted by your mortgage lender instructing you to buy home insurance posthaste. If you don’t, they’ll purchase a policy for you and bill you for it with your mortgage payment.
What’s the worst case scenario?
It can get a lot worse than having your mortgage company simply buy insurance coverage for you and slap the premiums (which you can expect to be far more expensive than what you were paying before) onto your monthly mortgage bill. In some cases, the mortgage company could see this as a violation of the terms of your loan and may take legal action against you to recover the full amount of the money loaned.
One of the chief requirements of closing the deal on a home mortgage is buying a home insurance policy. New home insurance doesn’t only benefit you, after all. The bank who’s financing your mortgage has a substantial stake in your home too, and taking measures to ensure that investment is is protected is one of their primary concerns.
What happens if I don’t get home insurance?
When it comes time to finalizing paperwork for your mortgage, the bank or lender will require you to provide proof that you’ve taken steps to insure your new home. In the event that you don’t secure new home insurance through the insurer of your choice, your mortgage company may do one of two things: hold up on closing until you’ve obtained an adequate insurance policy, or provide you with a policy of their own.
Is lender provided home insurance better?
In a word, no. The coverage you’ll get from a lender-provided home insurance policy will only differ from a policy you obtain on your own in out-of-pocket costs to you. Typically, the home insurance coverage that your mortgage company will purchase for you is far more costly than what you’ll be able to get on your own. Premiums are added to your monthly mortgage payment and could significantly raise the total amount of money you pay.
First things first: do you know where your home and auto insurance policies are? The likelihood—as demonstrated by the vast majority of people who wouldn’t be able to tell you where their current insurance documents were if their lives were on the line—is that you don’t. But just because you’re in good company doesn’t mean that you’re in good shape.
Why It’s Important to Have Your Home and Auto Insurance Policies
Having a copy of your current home and auto policies is important for several reasons, the least of which is so that you’ll be able to refer to either in the event of an accident or damage to your home. Being able to tell the level of your home insurance coverage at a moment’s notice can also come in very handy if you’ve experienced damage to your home and want to find out what’s covered prior to contacting your insurer. Filing too many claims can result in an increase to your premiums, and in many cases you’ll want to weigh your options before picking up the phone—especially if the repair bill is less than your deductible.
How to Get Another Copy
Insurance policy paperwork isn’t irreplaceable, and it’s not terribly difficult to get ahold of another copy if your searches through piles of paperwork at home have yielded no results. You can have another copy sent out to you by simply calling your insurance provider and informing them that you’ve misplaced your current copy.
Moving house is a great opportunity to compare home insurance quotes from various carriers. Not only will your new home probably have different insurance requirements from your previous home, but factors like location and weather can affect your insurance rates. Even if you’re completely satisfied with your current insurance carrier, it’s a good idea to set some time aside to request homeowner insurance quotes and seriously compare home insurance. And though staying with your current insurance carrier might be easiest, especially during the stress of a move, there’s no guarantee it’s the savviest financial choice.
How to Compare Home Insurance Quotes
It’s not difficult to compare home insurance quotes, though it will require a bit of time and effort. First, it’s smart to request a quote for your new home from your current carrier. An advantage of staying with the same carrier could be the possibility of a long-term client discount, which is definitely a factor to consider when you compare home insurance quotes. Next, you’ll need to request quotes from other insurance carriers in order to compare home insurance coverage, premiums, and deductibles.
One of the easiest ways to do this is through a company like AgentInsure, one of the nation’s leaders in insurance comparisons. AgentInsure can help you compare home insurance by providing you with homeowner insurance quotes that are tailored to your situation. The convenient online system allows you to see all the quotes side-by-side, so you can compare home insurance at your leisure before choosing the one that offers you all the coverage you need at an affordable rate.