When reviewing your policy, first find the answers to these three questions:
A homeowners insurance policy covers the structure, belongings and legal obligations if someone is injured at your home. A renter's policy does not insure the structure, but otherwise provides similar coverage. To review a list of coverage that is in a typical homeowners or renter's policy, go to InsureUonline, and select the appropriate life situation on the right.
Check the type of replacement value provided in the policy. Actual cash value (ACV) is the amount it would take to repair damage to a home or to replace its contents after allowing for depreciation. Replacement cost is the amount it would take to rebuild or replace a home and its contents with similar quality materials or goods, without deducting for depreciation.
Liability insurance protects you from legal obligations arising from accidents involving visiting non-residents. With a few exceptions, such as auto or boating accidents, all-purpose liability coverage follows wherever you go. An umbrella policy can extend the liability limits of a homeowners or renter's policy if the policy limit is insufficient.
Homeowner's and renter's policies typically include limited medical expense payments for injuries occurring on your premises to visiting non-residents. It may also cover medical expenses of another individual injured by you, a member of your family, or a family pet while away from the home.
A home inventory is the best way to determine the appropriate level of coverage needed for contents.It is also a useful tool to have in case of a loss. When doing the home inventory, make sure to include as much detail as possible about the items. Click here for a home inventory worksheet and tips to get started.
Homeowners do not need to insure the value of the land a home sits on, but coverage should include any outdoor structures on the property. For both homeowners and renters, concentrate on an accurate list of belongings and be sure liability limits are at a proper level.
Save money on homeowners or renter's insurance. Deductibles and discounts are generally the easiest places to save money on this type of policy. Most companies offer discounts for people who have more than one type of insurance policy with them, and for people who have had few claims or are long-term customers. When it comes to the deductible, -- which is the amount you have to pay if there is a loss, -- usually the higher it is, the lower the premium. It's normal to consider raising a deductible to save on premium, but remember, the bill will be that much more following a claim.
After reviewing the policy, call your agent or insurance company and ask these 5 questions:
Get educated about your insurance choices.