subject: Tips For First Time Homeowners [print this page] First time homeowners, particularly in a burgeoning city such as San Diego, can find buying a new home exciting as well as overwhelming. When going over the homeowners insurance checklist be sure to consider a complete policy that includes liability and personal property protection.
When shopping for quotes, there are certain things one should consider. Here are tips to get the best coverage at the most affordable price.
1.Know the difference between the replacement cost and the market value. Depending on how much was originally paid for the property, the cost of rebuilding can be higher or lower than the market value.
2.Rebuilding a home is usually cheaper than buying an existing structure. Unless the original property bought was a foreclosure, in which case rebuilding might be more expensive. The key is to accurately determine the cost of rebuilding when finalizing the details on a homeowners insurance policy. Take a home inventory and determine the proper amount of personal property protection.
Separate Coverage for High Net Items
High-net items should be evaluated separately as a homeowners policy may not provide what is needed. A separate rider may be needed for items such as: jewelry, fine art, collections, and other expensive items. Insuring these higher valued items should be discussed with an agent.
Liability and Umbrella Options Should Be Considered
Having enough liability protection will protect a homeowner if they are sued for an injury that takes place on their property. Many policies will even cover a policyholder if an incident happened away from the home. Depending on their assets, some may want to consider an additional umbrella policy if they are worried about ever being sued for an amount in excess of what their coverage offers, especially in todays highly litigious environment. A million-dollar lawsuit is quite common.
Also, know what is not covered by carefully studying the exclusions section of the homeowners insurance policy. This is important to be aware of so additional coverage can be purchased. For instance, if one lives in an area prone to flooding, like some coastal areas in or near San Diego, they may need to buy additional or excess flood protection. Consider the amount of additional living expenses on the policy and if that is enough if ever forced to leave the dwelling while repairs are being made; this can happen if the house becomes unlivable due to a flood, earthquake, fire or other disasters. A family will need to pay for living accommodations, or may need additional money for food, transportation, and other expenses.
Look for Stability and Discounts
When shopping for home insurance quotes, be sure to find a company that is financially stable and has a high customer satisfaction rating. Also ask about multi-coverage discounts if you purchase both homeowners policy and auto policies from the same insurer.
