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Homeowners Insurance and How To Buy It

In this life of never ending what ifs you cannot afford to overlook homeowners insurance. If you have a mortgage, most lenders require you to carry a bare minimum policy. However, it is always better to have an accurate picture of the value of your home and what's inside of it in case of a worst case scenario. You can never be too prepared for the unexpected so why take chances? Follow our guide to buying Homeowners Insurance and live with one less worry on your mind.

How To Buy Homeowners Insurance

Who Sells Insurance:

There are three types of companies that sell homeowners insurance: Direct sellers are your big insurance companies like AllState, State Farm, Progressive, Liberty Mutural, Travelers, Geico etc. Captive agents only sell one brand's products like a financial adviser. Or independent sellers who offer policies from a variety of sources. The best thing you can do with so many choices is to shop around for the best deal. With all of the competition you are sure to find a reasonably good policy with the coverage you need.

Deductibles: The Lower, The Better

Conventional wisdom always says to pay lower premiums since nothing will happen to you. Most people opt for this option. However, if you can afford to do it you should opt for higher premiums routinely so your deductible is lower in case of a catastrophic event. Over the life of a policy you wind up paying the same amount either way if something happens. It is just a matter of when. If you are in an unforeseen situation, it is almost always better to have to pay a low deductible out to ensure ease.

How Much Is Your Home Really Worth:

It is important to know the value of your home in case of catastrophic destruction or damage. If you are moving into a new home a good appraiser or home inspector can offer their professional estimate to you. It is important to plan for all eventualities and if you know how much your home is worth you know how large a policy to take out.

The Value Of Your Valuables

This is the often overlooked area of insurance. People often only account for their valuables like jewelry, expensive big ticket items and other expensive items. However, your appliances, fixtures and in some cases furniture and décor can be appraised and insured. Especially if you have irreplaceable artwork, family heirlooms or antiques it is vital to prepare for any and all eventualities.

Local Issues, Hidden Costs

Every standard policy has provisions for fire, theft and some other events. Some local and state laws require you to carry insurance of you live in a high risk area for flood or earthquake. Other times insurance policies are harder to obtain in places with a history of recurring natural weather events like tornadoes and hurricanes.

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