Home Insurance Tips

Reasons Why You Need Home Insurance

There are many reasons why you need to have home insurance. Although many may believe it to be an unnecessary expense, it is something that you don't want to be without. Below are several reasons why spending your hard-earned money on home insurance is a worthwhile investment:

• Natural disasters. It may seem like a longshot, but natural disasters occur much more often than you think. Floods, fires, hurricanes, and tornadoes are just some of the many events that happen every year. It's smart to be prepared and don't assume that your home won't be damaged should a natural disaster occur.
• Theft and robbery. Even in the nicest neighborhoods, break-ins happen. And in this economy, where many people are out of work and without money to pay the bills, theft is a very real threat to you and your home. If you don't have home insurance, you cannot be reimbursed for the value of the items that were stolen from your home, or better yet, be able to recover the items themselves.
• Home insurance is cheaper than you think. The perception is that it is a large expense. However, it can be tacked on to other insurance plans (such as your auto insurance) at a nominal cost.
• If a worker gets injured inside your home, your insurance will cover medical expenses. If you are adding an addition to your house or doing some remodeling, make sure you are covered should something happen.
• Peace of mind. If nothing else, having home insurance allows you to relax, knowing that you are covered should the unthinkable occur.

Reviewing Your Current Home Insurance Coverage

It's important to plan on reviewing your home insurance policy and coverage every year, or when something changes that will likely affect it. The following are some things to watch for:

• A remodel (even a simple one) can affect the value of your home, so be sure to check with your insurance agent to re-evaluate your policy.
• If you make any major purchases, such as a plasma television set or expensive jewelry, you will want to make sure they are covered under your policy. Take photos of the items and keep receipts.
• Know the difference between the market value of your home, which includes the land, and the home's replacement value. The two are not the same. Because rebuilding costs continue to increase, it's a good idea to review your coverage every couple of years.
• Adding safety features such as smoke alarms, house alarms, and sprinklers will likely result in a reduction of your current premium.
• A home business may or may not be covered under your current policy, so you should call your agent to find out.
• If you have very expensive items, make sure you have the appropriate coverage.
• Besides protecting the structure and contents of your home, home insurance also covers you against lawsuits for bodily injury or property damage that you or your family members cause to other people.
• If your home is getting old, you'll want to ask your agent about things that could expose you to greater risks as your home ages even further.