Household insurance is a vital component in your overall strategy to provide a comfortable lifestyle for you and your family. Maintaining insurance on your household protects the asset value of your house, provides a means to repair your house in the case of damage or storms, and is an effective way to insure the contents of your house against thieves and accidents. Make sure your financial freedom is furthered by buying adequate household insurance for your primary residence and any rental properties you own.
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Household Insurance Protects the Value of Your Home
Home values increase over time allowing you the homeowner to increase your financial portfolio substantially. As homeowners equity climbs, so does the net worth of the homeowner as much as hundreds of thousands of dollars depending on your location, the size, condition, and type of house you have, and the condition of the local real estate market.
Imagine then an event that comes along to threaten your home as well as the largest financial asset you likely will ever own. A big storm, a fire, flood, a tornado, or a hurricane can wipe out part or your entire house in an instant. Keeping household insurance on your house is the protection you need to recoup the cost of damage to your estate and even restore your home’s comfort and livability.
Household Insurance Provides a Means to Repair Your Home
In the event of a disaster that destroys part or your entire house, the insurance company comes out to assess the damage to determine how big the loss is. After comparing your damage to that of other homes in the area, the adjuster reviews your household insurance policy to determine every applicable provision. After the assessment is complete, your insurance company sends you a check so that you can repair or rebuild your house.
Keep in mind that insurance laws are different for every state, since every state has unique geography and demographics. For example, tornadoes are more common in the Midwest than in New England while hurricanes hit the South and eastern seaboard. Check with an insurance agent about the specifics of your locality that you need to be concerned with.
Household Insurance Insures Your Possessions
Not only will your house be repaired or rebuilt, but the contents of your home can also be replaced. Your possessions are an important part of your life. Furniture, household furnishings, electronics, technology such as computers, and personal items such as pictures and special quits made by Grandma all make your house a home.
These items are covered in your household insurance policy both in the event of a storm but also in case of theft or accident. It is important to keep an inventory list and pictures of these key items in a separate place outside your house. Usually an inventory is requested by your insurance company when you take out a policy. Household insurance then is an effective way to insure the contents of your home against personal and financial loss.
How to Purchase Household Insurance
Purchasing proper household insurance is not difficult. You can buy it directly from an insurance agent of the insurance company or go through an insurance broker. Using a broker provides easier access to multiple companies, the so-called one stop shopping. But a broker is a middleman and is not necessary to obtain adequate insurance.
Keep in mind that if you have multiple types of insurance with the same insurance company, you may receive valuable discounts. For example, if you keep your household insurance, auto insurance, and life insurance with the one provider, substantial discounts may be applied to your premiums on one or all of your various types of policies.
Household insurance is generally paid annually with a one-time payment. Depending on the insurance laws of your state and the way your mortgage company operates, you may need to pay your insurance on your household through an escrow account.
Rates for household insurance vary from insurance carrier to carrier so be sure to shop around for a good rate from a quality company. Don’t just go for the best rate. Check out the history, standards, and reputation of an insurance carrier before buying with them. You also want to be happy with the service your agent provides you during the quoting and application phase. Does he smile? Does she seem competent? Are they friendly and genuine? These are important items to consider especially when it comes time to file an insurance claim in the event of a disaster. Don’t sell yourself, your house, or your financial future short. Each year the insurance company will determine if they want to renew your household insurance policy or not.
Buying household insurance is a must to keep your home safe and comfortable for you and your family.
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