Moving to a First House? Home Insurance Basics
Many people are unaware of the fact that their home insurance companies can trap them after making two to three simple and small claims. But there are some key steps you can take to keep yourself protected. Once you know the basics about home insurance, you’ll have a good idea about the things you can expect and the things you must avoid. Plus, you’ll also be able to get the best home insurance, at the best price and also protect your coverage at the same time.
When you decide on getting yourself a new home, there are several things you need to consider aside from the moving and storage. Insurance is a major thing you should consider. There are 5 basic things you should know about home insurance, and these are:
1. Avoid Making Small Claims:
The most important thing to keep in mind is to not make small claims. Over the years, many insurers have been dropping off a lot of people for making small claims. When I say “small claims” I really mean small claims of just about $200 or $300 about two or three times. The key remedy for this is to raise your deductibles to at least $1,000. This will help lower your premiums almost by 25% and also help prevent you from making some of those smaller claims that can save you from being let go.
2. Keep A Check On The CLUE Report:
CLUE (Comprehensive Loss Underwriting Exchange) reports are basically claims of history databases. These reports are created to allow insurance companies access to consumer claim information when they are rating or underwriting an insurance policy. Insurance companies share information through this database. It is very important that you check your CLUE report in order to make sure that there aren’t any errors that would disqualify you from getting coverage or for your rates to increase through your own insurer.
3. Make Sure You Have Sufficient Coverage:
When people make additions or do major home improvement or alterations, they need to let their home insurance companies know, so they can increase their coverage amount. Generally in such cases, premiums don’t increase by very much, which will have hundreds of thousands worth of extra coverage. Whether it comes to moving and storage or securing your home insurance, it is always better to get in touch with a professional or an agent. Getting a home insurance agent helps with the appraisals and the insurance costs.
4. Work With An Independent Agent:
When you are shopping for coverage, be sure to hire an independent agent, especially if you live in a high-risk region or coastal area. It is a lot more difficult for people to get coverage in coast regions, but an independent agent will help you find out if there is an insurer available who can give you that coverage.
5. Ask What’s Not Covered:
Finally, be sure to ask what is not covered. One of the basic things often excluded in home insurance is flood coverage. Also, things like sewage backup coverage are often excluded. It will be very valuable to add a rider of about $30 per year. Be sure to find out everything that’s included or excluded from the insurance policy before you begin the moving and storage process.
