Owning a home is one of the best feelings you can get. A home can be your and your family’s safe haven. Not to mention, it is also one of the best investments you can make. However, it is also essential to safeguard your asset with an insurance policy– in case something unexpected happens. You will surely benefit from reading the 5 interesting facts mentioned below.
Here are the 5 facts you should know about homeowners insurance
1) You can purchase additional coverage along with your home insurance policy
No matter what type of home you own, you will find a home insurance policy tailor-made for you. As a new homeowner, you should spend some time looking up several home insurance policies suited to your needs. A standard home insurance policy covers the structure of your home, personal belongings, additional living expenses, and personal liability. Along with your standard home insurance, you can purchase additional coverage for earthquake protection, hurricane protection, medical payments, ordinance and much more.
2) Your credit score affects home insurance premiums
Your credit report is the first thing your insurance agent will pull up. Based on your score, insurance plans will be presented to you. The monthly premiums also depend on the credit score. No insurance company wants to take a chance by offering insurance to someone unreliable. They are counting on you to take proper care of your home and it’s surrounding area.
3) To successfully claim coverage, a homeowner is required to have an inventory of their possessions
For a first time homeowner, setting up a home inventory should not be that difficult as you won’t have a lot of possessions as yet. Making an inventory means having a list with all the items in your home listed along with their details like date of purchase, receipt serial number, model number, so on and so forth. You will be surprised to learn that, 48% of homeowners did not have a home inventory list in the year 2015.
4) Make sure you have a CLUE before buying a home
If you are wondering what a CLUE is, it is a report that contains information seven years of personal-auto and personal-property claims history. It stands for Comprehensive Loss Underwriting Exchange(CLUE) and is regulated by a consumer reporting agency known as LexisNexis.
Before buying a home, you need to ask for this report from the homeowner as the home you are about to purchase may have undergone repairs and fixed that can make getting a home insurance policy approval difficult or expensive.
5) Floridians are lawfully required to have coverage for sinkhole damage
A sinkhole or also known as cenote is a massive hole formed in the ground due to the collapse of one of the surface layers. Tiny sinkholes are quite common and you can find them in any state in the United States.
However, according to a report by the U.S. Geological Survey, states including Florida, Texas, Alabama, Missouri, Kentucky, Tennessee, and Pennsylvania have suffered massive damage due to sinkholes. Hence, insurance companies in Florida are legally obligated to offer sinkhole coverage to home insurance buyers.
Home insurance isn’t just about getting the structure of your home, and personal belongings covered. Homeowner’s insurance policy also covers many other things that you may not have considered yet. Let me know if you have any questions of doubts about the above-mentioned facts.