Most people who buy a home need to use a mortgage to do so. As a result, they are required to get insurance that meets minimum standards set by the lender. This is intended to protect the lender from losing the asset that secures the loan, not to protect the home owner. When you’re doing your shopping for an insurance policy, you should be worried about more than what the bank needs. You should make sure that you have a Home Owner’s Insurance policy that is designed to meet your needs.
One area that people often overlook is the need to consider what kind of protection is available for the items inside a home. There is usually some kind of coverage for this, though it typically has a much lower upper limit than the overall policy. It also often has a limit on the potential payout per item, and may exclude certain types of items entirely. If you own any valuable antiques or expensive jewelry, you should find out how well covered it is and whether you need to get additional coverage added specifically for that item. At the same time, you should make sure that you have a good understanding of what kind of documentation will be needed in case you have to make a claim following a burglary or disaster.
It’s also a good idea to find out whether there’s anything that you can do to make your Home Owner’s Insurance more affordable that you would like to do anyway. You may be able to get discounts or credits for things like adding a security system, sprinklers, or smoke detectors. Some of these are things that many families wish to do anyway. For example, parents with children who are just old enough to be able to spend some time home alone after school sometimes install a security system partly so that they have the reassurance of getting a message each day when their child enters the house, as well as the knowledge that there’s additional security on the building while the child is alone.
You shouldn’t let your insurance policy be completely shaped by the bank. Work with Business Name to come up with a policy that protects the things that you value as well.
