When you purchase a home it is important to understand the
magnitude of the event. You are taking on
one of the greatest financial responsibilities there is. With this said it is also important for
homeowners to realize that the only way to protect their investment for certain
is by installing a home security system along with an insurance policy to cover
the dwelling. The insurance will help to ease the financial burden that is
caused when a home sustains damage from events such as storms, the home is
burglarized or if someone get unintentionally hurt while at your home. No one ever considers themselves at risk for
these events however they are common and it is best to be covered.
It is important that homeowners look into a homeowners
policy that guarantees the value of the home and personal belongings at the
cost it is to replace the item. Many
companies offer policies for cheap but remember to read the fine print. These companies more often than not are
offering to replace your items and home at the depreciated value.
An insurance policy that is in place and covers the
replacement value will guarantee that you and your home are covered at the cost
that it is to rebuild your home with personal belongings no matter what the
current cost of materials or labor. Many
communities are seeing a large increase in the cost of materials and labor for
new home construction. A policy that covers the replacement value of the home
will ensure the best return to normal life for you and your family.
If you are looking to cut cost in regards to your insurance
policy there are several things you can look into. One is asking to increase the deductible on
your policy from $500 to $1000. This is
only a good idea though if you have access to an easy to access, abundant
emergency fund and can afford to pay out of pocket in minor damage occurs to
the home.
Another savings comes by adding a home security system. A home alarm and monitoring system can
decrease your insurance premium by up to ten percent depending on where your
home is located. The benefits with an
alarm are two-fold. One you save money
on your insurance premiums and two you actually deter thieves from attempting
to mess with your home. Home monitoring
that is linked to fire alarms going directly to fire rescue and police
departments can also mean the difference between minor damage verse sever
damage being done to your home.
Owning a home is a huge investment. It is not a simple as adding the warranty to
a washer and dryer. Not having insurance
for your home could end up being catastrophic to most individuals. One way to ensure your home is covered and
the insurance is paid on time and kept up to date is to have a monthly amount
withdrawn from your mortgage and put into an escrow account for this specific
purpose. This leaves insuring your home
hassle free for you the homeowner.