Home insurance can get complicated. There are a lot of big, fancy words, exclusions, additions, and fine print to contend with. Sometimes it seems beyond the comprehension of mere mortals – and don’t worry, agents feel that way, too! Befuddlement is a common side effect of insurance. That’s okay. We’ve got ten things you need to know about home insurance.
1. Bundling is magic.
Bundling means getting your home insurance and auto insurance from the same company, essentially combining them. Insurance companies love it when customers are so loyal that they get both their personal auto and home insurance from them, so they might reward you by lowering your rates.
2. A home security system can help you save.
Having a home security system means you’re at lower risk of a burglary. And even if your home does get broken into, the chances are that you’ll face less loss of property because the thief will have to get out of dodge quick. That being said, a home security system might help you qualify for a discount on your home insurance.
3. Your agent needs to know about any significant home improvements.
Remodeling or doing home improvements can affect the amount of coverage that you need to fully protect your home because the value might go up, so your agent needs to know if you make any big improvements to your home.
4. You need to think about construction costs when you insure your home.
You need enough insurance to cover the cost of rebuilding your home after a disaster like a fire. That means that you need enough coverage to take care of rebuilding the home itself and the costs of demolition, clean up, and materials. Simply getting enough insurance to cover the market value isn’t enough. That’s why it’s so important to find out if you have enough home insurance.
5. Policies have exclusions, but you can counteract those.
Home insurance policies have exclusions, meaning things that aren’t covered under the terms of the policy. For example, flooding and earthquakes are usually not covered under a typical policy. However, you can add coverage or purchase separate policies to protect your home. In some cases, you can add an endorsement, meaning a section that changes or amends the contract, to your policy. So, don’t panic – you can still protect your home against disasters that aren’t covered.
6. You may need extra insurance for valuables.
If you have expensive jewelry, artwork, antiques, or collections, you might need to purchase additional insurance to make sure that these things are properly protected. Your home insurance policy might not have enough coverage for all of your prized possessions. Check over your policy and ask your agent about any valuables that you think might need some extra coverage – they can help you figure out how to insure your jewelry and other treasures.
7. If a tree falls…
Okay, this is a classic – who’s responsible for a tree that smashed something? “But it’s my neighbor’s tree that fell onto my house. Why should my insurance have to pay out? Why am I out my deductible?” Well, in the case of hostile trees, the repairs are the responsibility of the owner of the property that was damaged.
So. If your tree falls onto your neighbor’s house, it’s their insurance that has to cover it. If your neighbor’s tree falls onto your house, it’s your home insurance that’ll have to cover it.
8. Your credit score has an impact on your insurance rates.
The better your credit score, the lower your premium. The reason why your credit score has an effect on your home insurance is that the insurance company sees a better credit score as being a lower risk. If you’re a lower risk, there’s less chance that the insurance company will have to pay out on a claim. So, it’s important to take care of your credit score.
9. Your dog can affect your home insurance.
If you have a breed that’s on the “dangerous dog list,” you might not get approved for home insurance if you’re applying for it. When you do find a company that will cover you and your dog, you might be facing higher premiums. Usually, breeds that are known for aggression that make it onto the “dangerous dog list.” Pit bulls, Dobermans, Rottweilers, Akitas, German Shepherds, and huskies are a few of the breeds that are often on the doggie blacklist.
10. Increasing your deductible can lower your insurance premiums.
If you choose a higher deductible, you can get lower premiums. You have to consider how much disposable income you have and how much money you’re comfortable paying at any given time. If you find that you can raise your deductible, you might get lower premiums.
Home insurance can be daunting, but hopefully, these ten fun facts about insurance will help you when you’re thinking about your policy. It’s important to know exactly what your policy does and doesn’t cover, and to keep it updated by doing a policy check once a year. Make sure that your insurance is doing its job and keeping your family protected from whatever life can throw at you.
If you’d like to get a free quote on your Atlanta home insurance, all you have to do is fill out our online quote form or give us a call today! We’d love to help you out with any of your insurance needs.