Boring as Hell, but It Pays Off

Posted January 25th, 2010
by HomeownersInsurance.org Staff (no comments)

boredWhen’s the last time you took out your homeowners insurance policy and took a good look at what was in there? If you’re like most folks, you never have. Let’s face it, talking to an insurance agent is often a lot like stabbing yourself in the eye socket with a pitchfork, only more painful. You have no idea what kinds of features are in your homeowners insurance policy. You’re pretty sure you’re not covered for earthquakes, for example, but you’re OK with that. You live in Iowa.

On the other hand, you may or may not know whether you’re covered for things like flood damage, or by an overflow of the city sewer system into your basement. You might not even know what you’re paying for in terms of homeowners insurance.

Still, it’s worth reviewing your homeowners insurance policy, at least annually. Here are some things to keep in mind as you go through the process:

  • Recognize that most policies provide coverage for your possessions up to around half of the value of the home. So if your home is valued at $100,000, you would have around $50,000 of coverage for the contents of your home. This may or may not be enough, depending on the kinds of stuff you own.
  • Your homeowners insurance doesn’t only protect your home and its contents, it also gives liability protection. This covers you against lawsuits and such for when someone is injured while they’re on your property. This liability goes up to a certain amount, based on your actual policy. $100,000 of coverage is pretty standard when it comes to liability protection.
  • A homeowners policy needs to cover the price to actually rebuild the home. The cost to rebuild a home isn’t based on the home’s value or the real estate market in your local area. Instead, it’s based on actual costs. This includes things like demolition and the removal of debris.
  • You may qualify for homeowners insurance premium discounts. The fact of the matter is that many consumers miss out on some of the best discounts available to them. For example, you might be able to get a homeowners insurance discount just by installing deadbolts on your doors, or by putting in a fire detection system. Talk to your insurance agent about what kinds of discounts may be available for you.

Photo via SAMAEL TRIP

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