If you're a home owner or planning to become one in the near future, then having the right homeowners insurance policy is a must. Feeling a little lost when it comes to shopping for home insurance? You're not alone. With all the different coverage options and add-ons available, things can get confusing. By being aware of some of the lesser known facts about home insurance, you can be better prepared to purchase the right coverage for your needs.
Flood Protection Might Not Be Included
One of the biggest misconceptions people tend to have about home insurance is that it covers all forms of water damage, including that caused by flooding. While it's true that most home insurance policies do cover water damage caused by roof leaks or plumbing leaks, the fact remains that most policies will not include flood coverage by default. If you live in a floodplain, it may be in your best interest (and may even be required by your mortgage lender) for you to purchase a flood insurance rider.
You May Be Entitled to Special Discounts
There are all kinds of great discounts available that can cut down your premium; specific discounts vary from one insurance carrier to the next, but many offer discounts for bundling policies and for certain upgrades to your home. For example, if you replace your traditional asphalt shingle roof with a more durable metal roof, you could be entitled to special savings. The same applies if you equip your home with a security system.
Your Credit Score Can Affect Your Rates
As with most types of insurance, your policy premium will at least be partially influenced by your credit score. The better your credit history, the lower the rates you may qualify for. On the other hand, if you have poor credit, you may find yourself paying a little more for your home insurance coverage.
You Should Always Keep a Home Inventory
Your home insurance policy includes protection against the loss of your belongings--but it will be difficult to file a claim successfully if you don't keep a detailed inventory of your valuables. It's a good idea to go through at least once a year and update your inventory of belongings; having photos of serial numbers on electronics is a great idea as well.
Being well informed regarding home insurance coverage can help save you money and make sure your home and belongings are protected. Be sure to keep this information in mind as you shop around!
Contact a business like Family Insurance Centers for more information.
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