How to choose home insurance

How to choose home insurance

Every homeowner should know how to choose home insurance. This is to ensure that you get the right coverage for the right price. There are many types of insurance policies for homes such that you can get confused choosing the right one. The basic homeowner’s policy covers the rebuilding of the home in case of a peril though you can get a policy covering your contents and personal liability. Below are some tips to guide you on how to choose home insurance.

Know what the policy covers

Before signing on the dotted line, you should know what the policy covers. Statistics show that most homeowners do not know all the items covered by their policies. For instance, they do know that the policy can cover personal belongings when traveling abroad. Talk to your agent or your provider to find out what is covered. Note that policies are different.

Watch out your mortgage broker

When taking a mortgage, it is a requirement that you have a homeowner’s insurance policy to cover the building. Your broker may insist that you take the policy that is tied to the mortgage, which could be more expensive than if you searched for your own policy. Feel free to search for a suitable policy with best value.

Have correct estimates

A home insurance policy should be enough to rebuild your home and replace your contents in case a disaster strikes. To know if your coverage is enough, you need to have the accurate estimates of rebuilding costs of the home and the cost of replacing your contents. Some insurers use these costs to calculate premiums and they may help in getting you the best deal. Make sure that you do not underestimate your home contents value. You may have made purchases that are not covered in your policy, which means you are insuring them for too little. Have a current valuation of the contents. If you have valuable items, note them and discuss with your insurance provider to ensure that everything is covered. You should also keep a record of the possessions in terms of photos and their receipts. This way, you can have evidence to support claims in case there is damage or theft. Avoid keeping items of high value in other structures in the home such as the detached garage, separate building or a shed. They may not be covered under contents policy if they are not in the main house.


Look for a policy that covers all your needs

Do you want the contents of your freezer covered or you want water leaks coverage? Homeowner’s insurance policy can provide a lot of covers and all you need to do is to assess your needs and ask your insurance agent or company whether there is coverage. You can also get emergency services damage cover, in case your home gets broken into due to an emergency.

Be wary of annual increases

Most policies increase premiums due to increase in rebuilding costs. Make sure you understand these increases while keeping an eye on them. You may also request for more details if you have doubts.

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Why Property Insurance is Important for Investors

Why Property Insurance is Important for Investors

Chosen carefully, many property insurance packages can reinstate you to the condition you were in before the loss. By paying premiums to your insurer, you are buying a guarantee from your insurer that in the event of a disaster, the insurer will offer a level of cushioning. Real estate property is like a car, very useful but prone to many accidents and disasters. Smart homeowners insure their investments, especially if they are letting out their premises. Note that you have the freedom to vacate it, live there or rent it out. 

Here are more reasons why you might need to insure your property:

1. Peace of mind 

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Tips on how to buy homeowners insurance

Tips on how to buy homeowners insurance

Investing in a home is a major decision for most people and that is why you should know how to buy homeowners insurance. This will ensure that your home is protected in case of loss due to threats such as fire, theft or vandalism. How to buy home insurance is an easy step process that can mean the difference between getting your property back after damage or suffering the loss. Below are some tips you can use to secure your investment.

Steps to buying home insurance

Have basic information concerning your property, before you start the search for homeowners insurance. This way, you will be ready to provide the information because it is required in determining the amount of coverage that you need. Some of the information you should have is on the age of your home and the age of the electrical and plumbing systems, the square footage of the home and if there had been insurance claims filled in the past few years. Choose the right type of insurance for your home. If you live in your single-family dwellings with a compound, then you can get the standard homeowners policy. For a condominium, you should take insurance for your unit on what has not been insured by the association. In case your home is for rental purposes, landlords insurance is the most suitable. Once you have the information, shop around for quotes from different insurance providers. You can use online comparison websites to get quotes and compare them. This will ensure that you get the best coverage for the money.

Find out the coverage for the type of insurance that you are taking. In case you want to know how to buy homeowners insurance, you should look for coverage for dwellings and other structures on your property. Find out the coverage for personal possessions and the limit provided for valuables as well as coverage for personal liability and living expenses if the home is uninhabitable in case of an insured peril.

Determine if you need additional coverage for valuables, extended replacement costs and against perils not covered by the standard insurance such as floods and earthquakes. You may also require inflation guard.


Understand the limits of the policy. This shows how much the insurer can compensate you in case an insured peril takes place and damages your home. For instance, if the dwellings limit is $300,000, this is the amount the insurance company will compensate you in case your home is damaged. The recommended liability limit is between $300,000 and $500,000 depending on the  value of the insured property. You should ensure that the limit given is enough to rebuild your home and replace your personal possessions.To reduce the amount of premiums you should pay, you can check if you qualify for various discounts such as discounts for having security systems in the home, discount for bundling policies or for older persons.  After you have known how to buy home insurance and you have bought the policy, you should remember to evaluate it every year to see if it requires updating.

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What Is Buildings Insurance?

What Is Buildings Insurance?

The buildings insurance caters for your property in case of a disaster that might damage your house beyond repair. This insurance takes care of rebuilding costs but here’s the catch, the disaster must have been beyond your control, mostly caused by natural disasters such as earthquakes and lightning.  

In most cases, mortgage providers will require you to sign up for this as it will put them in a better and secure position to recover damages in the event of such losses. They look at it as a collateral or form of security for the mortgage that they provide you. 

Properties are prone to various forms of natural disasters and property owners need to have that kind of worry off their shoulders. That is where building insurance come in. Great building insurance policies go an extra mile to cover outdoor structures such as greenhouses, sheds, gazebos, decks and garages. Boundary walls, fences and gates are usually left out by most insurers and it is advisable that you understand the terms and conditions of the contract. 

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How much is homeowners insurance

How much is homeowners insurance

There are many factors that determine how much is homeowners insurance that you should take. Some of the factors are the value of your property and the extent of coverage. A home insurance policy contains a combination of six coverage types. They include:


•    Dwelling coverage to cover the home and other structures that are attached to it.
•    Other structures coverage for covering detached structures such as a detached garage, fences and other structures not attached to the house.
•    Personal possessions coverage for covering your personal items such as electronics and furniture.
•    Loss of use coverage ensures that you are provided with living costs when your home becomes uninhabitable due to the occurrence of an insured peril.
•    Personal liability provides cover for financial protection if you are held responsible for someone else injuries or damage of their property.
•    Medical payments cover medical bills if anyone is injured when in your property.


The value of these types of coverage determines how much is homeowners insurance, with the major ones being the coverage for dwellings and personal possessions. You should make sure that your policy has enough cover for your home structures, personal possessions, living expenses and liability to others who are injured while on your property.

Cost of each type of coverage

The coverage for dwellings should be enough to provide for full replacement cost of the home. That is why it is important for the homeowner to know how much the rebuilding cost of the dwelling is so that it can be insured for accordingly. You should also review your policy at least every two years to ensure that your coverage could still cover home replacement. This is because changes such as inflation and cost of materials take place and they make the amount you have insured your dwellings for not to be enough. Personal possessions coverage should be at about 50 or 75 percent of the dwellings coverage. It is also important to take an inventory of your possessions to find out if the amount is enough. The insured amount should be able to replace your personal possessions in case a disaster occurs. To protect your personal liability in case someone is injured in your property or your dog bites a visitor, the coverage should be between $100,000 to $300,000. In case you think you might require more than that, you can purchase umbrella coverage policy to cater for additional liability.

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