Sunday 25 Feb 2018

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Homeowner Insurance & Home Warranty
In some cases you are required to have some form of Homeowners Insurance because of your lending or more commonly because of Community Association requirements. Before purchasing a property it is important to know if insurance is required because this is an additional cost to you.
The real question is do you want or should you even have insurance in the first place? If you have an option whether to get it or not consider the basics of having a policy. For one a policy protects your investment if anything happens to your property; this could be because of a tornado, fire, flood, robbery, someone driving a car through your home etc. This protection comes at a cost and you must determine if the cost is worth the coverage. The tricky thing about insurance is that for those who have owned their home all their lives with nothing happening typically regret paying the premiums for all those years but those who have had something happen to their home are absolutely glad they had the coverage. For more information contact an insurance company but before you do read the advice below.
You may be able to save hundreds of dollars a year on homeowners insurance by shopping around. You can also save money with these tips.
  1. Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium.
  2. Ask your insurance agent about discounts. You may be able to get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire retardant roofing material. Persons over 55 years of age or long-term customers may also be offered discounts.
  3. Insure your house NOT the land under it. After a disaster, the land is still there. If you don't subtract the value of the land when deciding how much Homeowners Insurance to buy, you will pay more than you should.
  4. Don't wait till you have a loss to find out if you have the right type and amount of insurance.
  5. Make certain you purchase enough coverage to replace what is insured. "Replacement" coverage gives you the money to rebuild your home and replace its contents. An "Actual Cash Value" policy is cheaper but pays only what your property is worth at the time of loss-your cost minus depreciation for age and wear.
  6. Ask about special coverage you might need. You may have to pay extra for computers, cameras, jewelry, art, antiques, musical instruments, stamp collections, etc.
  7. Remember that flood and earthquake damage are not covered by a standard Homeowners Policy. The cost of a separate earthquake policy will depend on the likelihood of earthquakes in your area. Homeowners who live in areas prone to flooding should take advantage of the National Flood Insurance Program.
  8. If you are a renter, do not assume your landlord carries insurance on your personal belongings. Purchase a separate policy for renters.
12 ways to lower your Homeowners Insurance from the Insurance Information Institute.
Just like with Homeowners Insurance you have to decide if the cost is worth the protection but unlike Homeowners Insurance you definitely have more of a choice of whether you want it or not as it is not a requirement. Home warranties can be dramatically different between companies offering the policy and there is a lot of different types of coverage you can choose from so it is imperative to read the policy and talk with the agent to make sure you are getting the coverage you want. Typical warranties cover appliances and damage caused by building defalts such as leaky pipes and faulty structures. Some homes come with policies when you purchase them; they are provided by the seller and are typically new construction and Home-Path homes.
Next- Understanding Taxes, How To Lower Them

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