It's a painful experience for anyone of us if our house goes down wasting our life long efforts to build it. Catastrophic floods, storms and fires may cause such damages and destroy our family's future.
Even though most of these disasters are "Acts of God", we can certainly prepare ourselves for such unforeseen events. A few good steps might just save us from losses both in terms of lives and property. While signing for an insurance coverage we should keep in mind the following -
Disclose your address
Make sure you don't forget to share your home address with the insurance underwriter. This is one way which enables you to determine your coverage limit irrespective of your future plans concerning your home. Your state laws determine your minimum coverage limit as well as the nature of losses that are to be covered under your policy. These days it's quite natural for all mortgage lenders to seek proof of insurance. While doing so, they don't even bother to stress out the coverage specifications.
Specified dwelling coverage
There are 2 good home insurance options for you to choose from. One of these options is to pick a policy that places a specified price tag against your home after you've encountered a loss. This price is worth the fair market value of your home as on the purchase date. You may also buy a home insurance policy to compensate for the home replacement cost in the event you meet with such calamities.
Get your home appraised
In order to determine your coverage need, you must first assess your home worth excluding the value of your personal belongings as well as the value of the land. You may count on factors like the 'square footage', the number of rooms etc. while arriving at the true worth of your home. Factors like whether it's a wooden home or one that's made of bricks will also play a key role in determining it's worth.
Remember the Inventory
Make sure that you retain all the receipts bearing the price and purchase date of your personal belongings. If possible take some snaps of all the items that you have. You could produce all of these as 'proof' under circumstances when an adjuster visits your home for inspection. Visit all the rooms in your house and make a note of all the items that are there. You may seek the help of the Household Inventory Schedules belonging to your carrier if you find this task toilsome and boring.
You should be equipped to meet any challenge that comes your way. If you're not prepared to meet any unforeseen risk, you may have a few things to regret about in the end. After all, it's your invaluable time and money that you're investing every day!
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