It’s a horrible thought, but disasters happen. From rather small incidents like your bike being stolen to the nightmare scenario of a fire, homeowners and apartment insurance is a necessity.
Your car insurance company probably offers homeowners and renter’s insurance, and you might even get a discount having more than one policy with the same company. Call your insurance provider to find out all of the details, and if they don’t offer the coverage, or don’t offer a discount, call around. You might be able to get a better deal elsewhere.
When you are shopping for homeowner or renter’s insurance, read the entire policy (as boring as it might seem) and read the fine print. If the wording of the policy is confusing or you are unsure what certain aspects mean, ask the insurance agent to clarify. These policies are most likely written by lawyers and we laymen need a translator! It’s the insurance agent’s job to make it perfectly clear, so put them to work. The point being that you want to know what your policy does and does not cover before you need it.
Insurance policies can vary from state to state so if you just moved, reread the policy and fine print of your new policy. Don’t assume that the policy will be the same as it was before you moved. Again, in your time of need the last thing you want is a surprise from your insurance coverage.
Most homeowners and renter’s policies will cover the majority of scenarios, such as fire, lightening, wind damage, hail damage, smoke, vandalism, theft, freezing, even volcanic eruption (seriously). But most policies won’t cover earthquake damage, flood damage, neglect or nuclear damage (seriously) so specifically ask if there are optional policies for these if you live in a flood zone or an earthquake prone area. These extras will likely cost more, but well worth the extra money if your home is damaged during an earthquake or flood.
The insurance premiums are dependant upon certain factors unique to you and the area you are living in. Your credit score will affect your premiums, for better or worse, as will the number of miles from a fire station, the location of the structure inside or outside of the city, number of feet from a fire hydrant, and the construction of your home (for homeowners insurance).
Keep video or pictures of your possessions in case of an accident, and, as accurately as possible, keep a log of big purchases along with the receipts, keeping in mind that “big” doesn’t necessarily mean size. A diamond ring is “big” because of its value.
When it comes to homeowners and renter’s insurance, this is the one investment you hope you will never have to cash in on, but in case you do, knowing you are covered will bring comfort during a very stressful time.
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