Homeowners insurance takes a bite out of your budget when you own a home. Laura covers ten facts you should know about home insurance so you get the most out of it, fully understand the coverage, and pay less.
Fact #8: There’s a deadline to make a claim
When you do need to file a claim for major damage, don’t wait too long. Many policies include a 14-day reporting window to make sure that damage doesn’t get worse over time.
If you miss the claim deadline, you could be out of luck and have to pay repairs out of your own pocket.
Fact #9: You need to create a home inventory
If there’s a disaster, the last thing you want is to have a claim denied because you don’t have good records. Document what you own by creating a home inventory that lists your personal belongings and what you paid for them or their appraised value, then store it in a safe place or online.
Use your smart phone to take video of each room and the contents of closets and cabinet. That would help you remember everything if your home was completely destroyed in a fire, storm, or tornado.
Fact #10: You may be missing discounts
I mentioned that insurers set premiums based on your potential future risk. When you make home improvements or add technology that makes your home safer—like smoke detectors, alarm systems, deadbolts, and upgraded doors, windows, or roofing—you may qualify for discounts, so let your insurer know.
Another smart way to save is to bundle your home or renters policy with other coverage, such as auto or life insurance, at the same company. Also consider increasing your out-of-pocket deductible (if you have enough emergency savings to cover it), because that reduces your premium.
No one enjoys paying for insurance, but when disaster strikes, having a homeowners policy can be a financial lifesaver.
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