Take Inventory Before Pursuing Homeowners Insurance

by Mark Fightmaster

Although cost should be part of any purchasing decisions, it should not be the only deciding factor. In fact, when shopping for homeowners insurance, cost should be only one among many aspects under consideration.

To find affordable homeowners insurance, you should consider the following:

• The right amount of coverage
• Special protection for personal property (including jewelry and other valuables)
• Additional coverage for earthquakes or flooding (depending on where you live)

Luckily, the Insurance Services Office (ISO) has provided terms for standard home coverage. These terms help to keep standard home insurance from changing too much from insurance provider to insurance provider.

Although there are standards for homeowners coverage, there are many different types of policies. One way to limit the number of policies is to take an inventory of your home. Your home inventory should include:

• The year your home was built, and any subsequent remodelling
• The materials your home is constructed from, such as plaster walls or hardwood flooring
• The condition of your home
• The size of your home
• The number of rooms
• The overall condition of your home

Your inventory allows you to decide on the homeowners insurance policy that is best for you by determining the value of your home. For example, if you have a unique residence, like an original Craftsman, you may decide that the extra cost of replacement coverage, coverage that rebuilds your home and replaces the contents, is a better option than actual value coverage (a cheaper insurance option that pays you the actual value of your home at the time of loss).

Personal Possessions

When you finally do decide on an affordable homeowners insurance policy, you should also take inventory of your belongings. Know what you own, how much it is worth, and how much it costs to replace the items.

Document your personal property, the serial numbers, and the item's value. If possible, dig up the original receipts and store them with pictures of the items in a fireproof box, or better yet, a safe deposit box.

Homeowners insurance covers much more than just the home and property. Homeowners policies often cover off-premises theft, and may even offer protection against the unauthorized use of your credit cards.

It is important to know exactly what you want in your homeowners insurance policy. This way you can shop for affordable homeowners insurance that also fits your needs. If you are looking for an affordable policy, make sure to enter your information into the form above.

Sources

http://www.insure.com/articles/homeinsurance/basics.html  

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