Protecting Your Utah Home is Easier Than Ever

Unless you are fabulously wealthy and wouldn't really miss the money if your house was destroyed and you had to pay to replace it, you should have home insurance. Although Utah does not require you to have a plan, it is a wise idea to have, and if you have a mortgage, your lender probably requires that you get it. You should review your policy carefully, as you do not want to find out after the fact that you were inadequately covered. These are some of the things that you should know about buying a plan in Utah.

Earthquake and Flood Insurance is Not Standard

When you purchase a policy in Utah, you may be surprised that earthquake and flood insurance is not normally covered. If you want to be insured against these hazards, you will have to insure for them separately. Not all companies carry these policies any more. For flood coverage, you may have to go through the National Flood Insurance Program. Although Utah is not known as earthquake territory, a small earthquake happens in the state almost every day. If a large earthquake were to occur and your house was destroyed, the loss would be devastating.

Parts of a Plan

There are several different parts to a policy, and you want to make sure that you are adequately protected in each area. They are:

Your Credit Score Affects Your Premiums

It sounds unfair to punish people with low credit scores by increasing their premiums, but unfortunately, many companies will charge you more if your credit score is lacking. There seems to be a statistical correlation between a person's credit score and the losses that they claim on their homeowner's policy. Paying your bills on time, making sure there are no errors on your credit report, and paying down your credit cards not only will get you a better interest price when you go for your next loan, it might also lower your rates.

Higher Deductibles May Lower Premiums

If you want to save money on your plan, you may want to consider a higher deductible. A deductible is the money that you will have to pay before the insurer will start reimbursing you. When shopping, compare the rates with different deductibles.

Shop Around for the Best Rate

Not every provider is the same. Try looking at different companies to see which one will charge you the least amount of money. You don't have to choose the default carrier that your lender recommends.

Review Your Coverage Annually

Because situations in your life change, you should review your policy annually. Be especially aware of the amount that your structure is covered for. In times when building costs are rising, it is quite common to find that you need to increase this coverage.