Although it can sometimes seem like we’re inundated with holidays, if you own or want to own a home, then National Insurance Day is one of the ones that you definitely want to pay attention to. Why, you ask?
Well, the numbers show that two-thirds of all American homes are underinsured. Fact is, the benefits of homeowners insurance should not be overlooked – especially because it’s such a competitive market – which means potentially great deals for you!
Just think: what if a natural disaster strikes? Repairing any part of a house can be an expensive endeavor, and the numbers show that 2/3rds of American homeowners would likely end up paying for much of the damage out of their pocket. This is especially problematic in light of other studies that show most Americans simply do not have enough money saved to weather an emergency.
Before such a calamity hits, it’s in your best interest to know just how much coverage your current homeowners’ insurance provides, as well as the situation involving your premiums. The most straightforward way to understand all of this is to get a hold of your current agent and ask him/her the following six questions:
1. What Kind of Policy Do I Currently Have?
Primarily the options here are market value policies or policies with replacement coverage. The replacement option speaks for itself in that it covers the entire expense of the part in question; whereas the market value policy – while less expensive – tends to cover only part of your post-damage expenses. Basically, you have to know where you are in order to know where you need to go.
2. What is the Scope of Damage Covered by My Policy
Have your agent carefully go over the precise spate of damages covered by their standard homeowners’ insurance policy. Ideally, you want one that covers liability, house structure, and personal artifacts. This is imperative, as some policies don’t cover damages from natural disasters in high-risk areas such as hillsides.
3. What Is NOT Covered By Your Current Policy
This is an extension of the above – and it is very important to get specific. Query your insurance agent as to the scope of personal artifacts covered; you could be limited to several thousands of dollars for your belongings – which is problematic if you’ve got jewelry and other expensive items.
4. What Is the Deadline for Damage Claims?
For obvious reasons, this is one of the most important questions – you wouldn’t want the deadline to come and go, resulting in you having to cover the cost of major damages out of your own pocket. Make sure to get the date and set whatever digital reminders you need a week in advance. When disaster strikes, everything is in upheaval; make sure this is squared away in advance.
5. Availability of Discounts
Don’t hesitate to ask your insurance agent about any promotions or discounts. You’ve got a lot to lose by not asking! Usually, most of these insurance outfits help you save money by bundling together various insurance sub-packages. Feel free to also ask about any other ways you can save, based on what they’re offering.
6. How Can You Reduce Your Premiums?
Lastly, it never hurts to find out if your insurance agent knows of any premium-reduction avenues. Remember; insurance is all about risk; thus, if you can implement preventative actions that minimize disasters, you could be eligible for lower premiums.