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Home Owner Insurance

Searching for a dream house, being able to find one after considerable research, going through the house with a fine tooth comb to know if everything is fine and then raking up enough money to buy it is indeed an achievement. After all, it is an investment one makes and there should never be any issues later on. As a homeowner it is his duty to protect his assets because that in turn protects his family too. Many people spend lots of money trying to find the best house, but when it comes to insurance, they usually back off, contenting to buy the most basic insurance policy for which they have no particular use when there is a need. So if a homeowner spends a great deal of time and energy in buying a lovely home, then he should spend the same amount of energy to get the best home owner insurance policy. It doesn’t need to be that hard a task if one knows what to look out for. The three tips detailed below will be a major help to people looking for the best policy.

Look for an exclusive insurance agent

Though there are lots of home owner insurance agents, there are not many who have the homeowner’s best interests at heart. For the insurance agent, the homeowner is just another name in the list; it only contributes to his target at the end of the month. The agent the homeowner chooses should not give him undue pressure, but should be patient enough to detail each and every policy the company provides. That doesn’t mean the homeowner should brainstorm with the agent, spending all his time over it. The agent will go over all the policies and zero in on all the policies that match the homeowner’s interests. He will then sit down with the homeowner and discuss the pros and cons of each policy. An honest agent will give a proper appraisal for all the policies which may be benefit the homeowner; that means balancing the good and the bad.

Choosing the best deductible

Once the agent comes into the picture, he will help the home owner choose a deductible that will help lower the monthly or yearly insurance premiums. Deductible is the amount the homeowner has to pay out of his pocket when there is a disaster; the claim for the policy comes much later. If he pays a deductible of $2000 then he has to pay a premium of $1000; that’s how it works. Catastrophe deductibles vary from region to region and in some places it is calculated on a percentage to percentage basis. The insurance agent will have knowledge on that, so he will advice the homeowner.

Knowledge about limits of coverage

Of course, the insurance agent is always there to help him choose the best policy. But the homeowner should also be aware of the limits of his coverage before filing for claim. It will help avoid unpleasant situations later on. The home owner insurance policy should be able to provide towards the full the cost of repairing the home. However, it depends a lot on the dwelling coverage the homeowner is applying for. The market value of the home and the replacement cost are not one and the same. The homeowner, when filing for claims must make sure that the replacement costs doesn’t fall below 80% of the total cost of repair. That’s where the catch lies. Only a smart policy will be able to cover at least that much. The policy usually covers the dwelling, other structures, personal items, loss of use, medical payments and personal liability.

This proves that buying a house is not the end of the task for the homeowner. It is just half the job done because now he has to make his home and property protected from all sorts of calamities, accidental or deliberate. Only a professional agent will be able to help with that; being in the field he will know what will be good and what to avoid. The homeowner must also remember one thing before buying a house; it is the home owner insurance that protects the house and so when he is buying it he must be sure that he will be able to afford the policy amount each year.

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