Five Insurance Tips Every Homeowner Should Know | Core Benefits Group

Posted on: Wednesday, June 26, 2013

For most of us, our home is going to be the most valuable asset we’ll ever own. When the recession hit, home values plummeted, and many felt that their homeowner’s policies were overvalued. However, as the economy has slowly rebounded, policy holders became confused about what to do, and how to proceed. If you are considering making changes to your existing policy, or if you are looking to become a first-time homeowner, there are several factors which you must consider.

Know the value of your home.

Your home’s market value has very little to do with the condition of the home itself. During the recession it’s possible that your neighborhood was affected, even if you made improvements to your building. A foreclosure in the neighborhood would have an affect the value of your home. Did you know that local shopping and schools are also considered during evaluation? Perhaps you live near a protected wetland area, and don’t know it. Get assessments made of your home’s value.

Know the costs to replace.

In a worst case scenario, it is vital to consider what it would take to rebuild your home. This is not something people want to think about, but remember that the costs to rebuild your home are going to be quite different from what you paid for it. Don't include the cost of your land when deciding how much coverage to purchase.

Avoid disasters.

Be sure to safeguard your home. There are many new state of the art safety measures on the market. Consider installing burglar and safety alarm systems which are linked to local police and fire departments. Be sure to install smoke alarms on all levels, and change your batteries at regular intervals.

Consider disaster coverage. Flood and earthquake coverage is not part of a typical plan. If you live on a flood plain, for instance, you’ll want to be sure to include coverage that will protect you.

Know the value of your possessions.

It is highly recommended that you keep an updated record of your possessions. Did you inherit a valuable pair of earrings recently? Did you buy new furniture? An excellent habit is to make a video of your home’s possessions once a year, and look at any new additions within the household at that time.

Heed these simple suggestions and you’ll rest easier at night. Now, as much as ever, your house is your home.

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