Understanding Insurance Terminology

Understanding Insurance Terminology

3 Great Tips To Remember When Buying Home Insurance

by Vilma Maki

Home insurance is too often treated as an afterthought by homebuyers, especially those purchasing a residence for the first time. Yet many mortgage lenders will not allow the closing process on a home to officially conclude unless the buyers have offered proof that they have a home insurance policy in hand. If you are currently shopping for a new home and are unsure about what things to keep in mind while looking at home insurance policies, take a look below at just a few helpful tips. 

Make Sure You're Covered in the Event of Natural Disasters

One of the biggest mistakes people often make when purchasing home insurance is assuming that it covers any and all damage that can befall their home. Unfortunately, even the best policies may not include coverage for natural disasters such as floods or wildfires. If you live in a part of the country where your property is at risk of being destroyed by these or other natural disasters, then it is wise to inquire about additional policies that offer sufficient protection. For those worried about cost, it is worth noting that many insurance providers offer discounts for additional coverage that is bundled with the main policy.

Don't Forget To Insure Your Most Valuable Possessions

Even if you don't live in an area in which natural disasters are particularly frequent, it may still be advisable to purchase an additional policy. While many basic home insurance policies do include coverage for most of your belongings in the event that they need to be replaced, they may simultaneously exclude items considered "valuables", or those appraised over a certain dollar amount. Individuals who own expensive jewelry, fine art, or even things such as vintage bottles of wine are encouraged to purchase additional personal property insurance for these items. 

Take Advantage of All Possible Discounts

If you are about to become a new homeowner, you may be completely unaware of one of the easiest ways to lower your home insurance premiums by proactively making your home more secure than it already is. Many insurance providers are more than happy to give discounts to homeowners who install home security devices or prove that they have taken extra measures to protect their homes against natural disasters. While these measures may cost you a bit of money in the short term, they can actually save you money over the course of several years.


About Me

Understanding Insurance Terminology

After we purchased our first home, we realized that it might be a good idea to evaluate our insurance coverage. Although we had purchased homeowners insurance before, we had never owned a policy as large as the one we would need for our new place. Also, our new home had a trampoline and a swimming pool, which made us worried about liability. To iron out the details, I decided to meet with our insurance agent. We talked about things like monthly premiums, coverage limits, and deductibles, and it was incredible to learn more about the terminology. This blog is designed to help you with the same types of questions.