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Simple Tips On Questions To Ask When Shopping For A Home Owner Insurance Plan
It is important to have home owner insurance not just because it protects your home and your possessions but because it provides liability coverage as well. But the main reason is because most lenders will not fund a home loan without home owner insurance.
The following are the steps to take to shop and buy the best home owner insurance possible:
- Call different insurance companies to enquire about the rates. They should be able to give you a quote based on the replacement value of your home. It's best to get quotes from at least five different companies so you have a good idea on what the market is like.
- When you are making these calls, find out about bundled plans. An example would be insurance plans that cover both the home as well as your car. This is because these plans often provide a price break on both types of coverage.
- Be sure to ask agents about including a replacement-cost endorsement in your policy. It is important because it acts as an inflation-guard clause in the policy that ensures that your coverage keeps up with the cost of replacement. Also be sure to inquire for the definition of replacement costs. The best home owner insurance plans will cover everything regardless of replacement costs whereas others will set limits.
- It's also good to check for content coverage. It's especially important if you have any collectibles or a home office. Sometimes these extras may have to be covered under a special coverage clause so it's up to you to decide if they are worth it.
- Check for deductibles! The standard deductible on homeowner's insurance should be $250. As a rule, don't go any lower than that because it dramatically increases the cost of the policy.
- Also ask what the liability limits will be for the home owner insurance policy. The standard amount is $100,000, but $300,000 is much more desirable and doesn't cost much more.
Home Owner Insurance
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