{"id":46801,"date":"2022-01-23T06:01:43","date_gmt":"2022-01-23T12:01:43","guid":{"rendered":"https:\/\/lovelaceinsurance.agency\/?p=46801"},"modified":"2023-11-30T08:57:46","modified_gmt":"2023-11-30T14:57:46","slug":"homeowners-insurance","status":"publish","type":"post","link":"https:\/\/lovelaceinsurance.agency\/homeowners-insurance\/","title":{"rendered":"10 Tips You Need To Know About Homeowner’s Insurance"},"content":{"rendered":"\n[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″][et_pb_row admin_label=”row” _builder_version=”4.23.1″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″][et_pb_column type=”4_4″ _builder_version=”4.23.1″ hover_enabled=”0″ global_colors_info=”{}” custom_padding__hover=”|||” sticky_enabled=”0″][et_pb_text admin_label=”Text” _builder_version=”4.23.1″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” custom_padding=”|||3px||” sticky_enabled=”0″]
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This article shares the 10 tips you need to know about your homeowner\u2019s insurance.<\/span><\/p>\n

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But, your homeowner’s insurance policy is like trying to learn a foreign language. Or better yet, reading your policy jacket is like watching paint dry. I mean, who watches paint dry?<\/p>\n

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Whatever the case, owning a piece of Americana is what every American citizen dreams of doing! Having a little place to call your own, sharing stories with loved ones, and raising a family is what it’s all about.<\/p>\n

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Protecting your investment should be at the top of the list. We’re going to streamline your understanding, share tips and answer questions when it comes to your homeowner’s insurance policy.<\/p>\n

Buying your first home can be exciting, challenging, and stressful – all at the same time. Which can cause heavy caffeine consumption and, my personal favorite, chocolate!<\/span><\/p>\n

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The conversation may go something like this. You look at your beloved and say, “Hey honey, let’s buy a house and raise a family.” To which the reply is, “okay, let’s do it!” Alright, maybe not in those exact words, but you know what I mean.<\/p>\n

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“Sleep is for people without access to the MLS…”<\/p>\n

Lighter Side of Real Estate<\/em><\/cite><\/p>\n<\/blockquote>\n

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Buying a home i<\/em>s pretty involved; check out the tips for buying a home a little further down.<\/em><\/p>\n

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You meet with a real estate agent and start shopping for your slice of heaven (the fun part). Then, after finding the home of your dreams, the agent makes an offer on your behalf while you stand by patiently waiting to hear five beautiful words, “the seller accepted your offer!”<\/p>\n

Whew! Well alright! What’s next? Financing.<\/p>\n

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A mortgage specialist calls and lays out the plan for the next few weeks. Then they ask for a ton of paperwork (stored somewhere)<\/em> and casually mention you’ll need homeowner’s insurance to protect your investment and the bank’s interest. Unless, of course, you buy your home outright, all cash, more on that later.<\/p>\n

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The challenge is on.<\/p>\n

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You knock the dust off boxes stored in the attic and uncover paperwork that hasn’t seen the light of day since\u2026 well, dare I say it\u2026 yea\u2026 no, moving on.<\/p>\n

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It’s all good. The train is on track.<\/p>\n

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\"Financing<\/figure>\n

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As closing day approaches, the lender calls and says,\u00a0“Hey, I need your quotes for homeowner’s insurance.”<\/em>\u00a0Screeetch, ah, snap! I forgot to get homeowners’ quotes!\u00a0Undaunted, you jump on the computer, pull up your favorite Internet browser (the 800-pound Google’rilla)<\/em>, and type\u00a0“homeowners insurance near me”<\/em>\u00a0into the search bar. Yea .. that should do it .. 1,240,000 results! Wut… more coffee, please.<\/p>\n

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“The Lovelace Insurance Agency, hmm .. They look pretty good, I’ll give them a call. “<\/em><\/p>\n

Sweet<\/em> .. chocolate I mean \ud83d\ude09<\/cite><\/p>\n<\/blockquote>\n<\/figure>\n

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After a mutually engaging conversation with the agent and providing them with all the necessary details, you’re surprised to discover the premium is very reasonable.<\/p>\n

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The homeowner’s insurance deductible is fair, and property coverage is enough to cover a total loss.\u00a0And liability limits are in place to protect the family.<\/p>\n

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Sold! We’ll take it.<\/em>\u00a0The agent tells you the declaration page is emailed\/faxed to your mortgage\/bank and the policy mailed.<\/p>\n

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To all those that thought English was the primary language, wait until your homeowner’s insurance policy arrives in the mail! Deductibles? Declaration pages? Property coverage, liability?? What the freak! Argh, more chocolate!<\/p>\n

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Understanding Your Homeowner’s Policy<\/h2>\n

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Legalese aside, your homeowner’s insurance policy is pretty straightforward, once you cut through all the addendum’s and riders. At its core, the policy is a contract between an insurance company and the insured.<\/p>\n

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The insured can cancel the contract at any time, for no reason. But the insurance company cannot without just cause.<\/em><\/p>\n<\/blockquote>\n

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The most important parts of a policy refer to property coverage and liability. Your lending institution requires homeowner’s insurance because of their financial interest in the property, i.e., the money they loaned you to buy the house. So unless you buy the house outright, the bank owns it until you pay off the loan, either 15 to 30 years down the road.<\/p>\n

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Breaking Down the Basics<\/strong><\/em><\/h2>\n

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The Deductible<\/em><\/strong><\/h3>\n

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This is the amount you pay per incident and the insurance company pays the rest up to the limits of the policy. As an example, say the limit of your homeowner’s insurance policy is $300,000 and $5,000 for the deductible.<\/p>\n

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The house catches on fire, resulting in $100,000 in damages. Your portion of the bill is the deductible ($5,000) and the insurance makes up the rest ($95,000).<\/p>\n

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Speaking of Limits – this is the maximum amount an insurer will pay on any single incident.<\/p>\n<\/blockquote>\n

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It makes sense to max out the limits, so there’s no gap should a total loss occur. Any gap becomes your responsibility. Apart from your replacement\/dwelling coverage, the items outlined below are typically a percentage of the dwelling coverage, generally known in the industry as Coverage A.<\/p>\n

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Other Structures<\/h3>\n

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This can include detached garages, pools, sheds, barns. Basically, any structure on your property not attached to your home.<\/p>\n

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Personal Property<\/h3>\n

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This includes the contents in your home, such as furniture, jewelry, appliances, clothing, and collections.<\/p>\n

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Loss of Use<\/h3>\n

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Continuing our fire example, if the home becomes uninhabitable due to extensive damage, loss of use pays for reasonable living expenses when you have to live someplace else, a hotel for instance, while rebuilding\/repairing your home.<\/p>\n

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Personal Liability<\/h3>\n

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This coverage protects you and your family from legal entanglements due to neglect. For example, you invite friends and family over for a barbecue, and a guest injures themselves during the festivities. They fall and hurt themselves from a broken step and decide to sue you because of your neglect.<\/p>\n

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They can collect for damages, such as hospital bills, pain and suffering, loss of income, and attorney\u2019s fees up to the policy limits. Not having enough liability coverage can result in the loss of your home to pay for damages.<\/p>\n

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Medical Payments to Others<\/h3>\n

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It covers medical bills incurred by people invited on your property or as a result of your activities and can help offset the cost of the medical bill.<\/p>\n

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The last two coverages, Personal Liability and Medical Payments to Others are stand-alone but still a part of your policy. Very important to understand that not all losses are covered under the homeowner’s policy, like floods and earthquakes.<\/p>\n

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If your dream home resides in a flood or earthquake zone, your lending institution will require the purchase of a flood or earthquake insurance policy to protect the home. Talk with one of our knowledgeable agents, they’ll be more than happy to help you understand your options.<\/p>\n

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\"Tips<\/a><\/figure>\n

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Tips For Maximizing Your Homeowner’s Insurance<\/h2>\n

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Increase Your Homeowner’s Insurance Deductible<\/h3>\n

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Deductibles are the amount of money you have to pay toward a loss before the insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums.<\/p>\n

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Bundle and Save<\/h3>\n

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Bundling your homeowners with the same insurance company can save 5 to 15 percent on premiums. Bundling home<\/a> and auto<\/a> is a perfect example.<\/p>\n

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Don\u2019t Confuse Market Price with Replacement Cost<\/h3>\n

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Market values and rebuilding costs are two separate things. Where market values are established by area home sales, the cost of labor and material fluctuates year to year. Think of it as buying gas for your car. We don\u2019t expect to pay the same price at the pump, it would be nice, but prices fluctuate and are directly tied to market forces i.e., supply and demand.<\/p>\n

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Home Security<\/h3>\n

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Most insurance companies offer additional discounts when you protect against vandalism and burglary. Installing a burglar alarm can help protect your valuables and save money on your homeowner’s insurance.<\/p>\n

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Ask About Other Discounts<\/h3>\n

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There are several discounts offered by insurance companies that help offset the premiums you pay. Discounts like multi-policy, claim-free, early signing, protective device, welcome and loyalty, new home buyer, 55 and retired are all available to offset the premiums you pay. Ask about them on your call with us.<\/p>\n

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Maintaining a Good Credit File<\/h3>\n

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Having good credit shows an insurance company you are financially responsible, and it can profoundly affect insurance premiums.<\/p>\n

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Review Your Homeowner’s Insurance Policy and Value Possessions Once a Year<\/h3>\n

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Just as you would review financial statements from banks and retirement, your insurance policies should be reviewed at least once a year. New purchases of jewelry, additions to art collections, coin and stamp collections, expanding the home with a new addition should be reported as soon as possible.<\/p>\n

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Tell your agent as soon as possible so these items can be added to your policy, protecting them against loss. There is nothing worse than investing in a piece of jewelry or art, experiencing a loss, and not getting a full replacement because the items were not added to the policy.<\/p>\n

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BONUS TIP:<\/strong> Take photos of your possessions and upload them to a cloud service like Google Drive or Dropbox. That way, in the event of a loss, you can access it from a mobile device and not have to scramble trying to remember what you had where or what was lost.<\/em><\/p>\n

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Here at the Lovelace Insurance Agency<\/a>, we take pride in reviewing your coverages once a year and offering solutions that can help lower your premiums.<\/p>\n

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When Buying a Home Consider the Cost of Insurance<\/h3>\n

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Getting an insurance quote prior to starting the home buying process can help you understand the costs associated with homeownership. And as a plus, it makes the home buying process easier for all parties involved.<\/p>\n

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Determine Insurability<\/h3>\n

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There are several things you can do during the home buying process that will help when getting insurance rates and can go a long way in lowering insurance rates before putting an offer on the table. Here are some questions to consider:<\/p>\n

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