Finding Better Insurance For Your Family

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Finding Better Insurance For Your Family

About a year ago I realized the insurance plan that my family currently had wasn't sufficient for our needs. It seemed like whenever anyone got hurt, we really struggled to pay the bill. Fortunately, a friend of mine recommended a better insurance plan that they had used before. We applied, and we were pleased when we were accepted. Our premiums were reasonable, and the coverage was amazing. I know we have benefited greatly from the new insurance. This blog is for anyone out there that is struggling to choose insurance or to select add-on options for their plan.



What You Should Know About Home Insurance

When you are in the market to buy your first home, you may feel excited and overwhelmed with the prospect of being a homeowner. There are many things to think about and do as you begin your journey to homeownership. One of those things to figure out before you move into your new home is homeowner's insurance. Get to know some of the important facts about home insurance. Then, you can be sure you get the right policy for your new home and that your home is as protected as possible from day one. 

Home Insurance Is Not Mandatory But Is Necessary

One of the facts that you should keep in mind is that homeowner's insurance is not required by law. If you buy your house outright (i.e. with cash), you will not be required (in most states) to buy homeowner's insurance. However, if you get a mortgage loan, it is always in the terms of the loan that you get home insurance as this protects the asset that the bank is financing for you. 

Whether homeowner's insurance is mandatory by law or not, it is necessary to have it if you want to be a responsible homeowner. Damage can and will happen to your house. This damage can range from minor to severe or catastrophic. Without insurance, you will be liable for the total costs of any damage which can be in the $100,000s if the house is completely destroyed in a fire or other natural disaster. 

Homeowner's insurance is necessary for responsible homeownership and can protect you from the costs of damage that you might not be able to afford on your own. 

Think About Your Deductible Carefully

One of the biggest factors to consider in choosing a homeowner's policy is the deductible that you will be paying if damage does occur to your home. You will want to sit down with your finances and carefully determine what you think you might be able to pay out of pocket for home repairs at any given time.

If you have an emergency fund set aside, for example, how much of it would you take out for home repairs? How much extra do you have every month after expenses that could be put toward repairs aside from the emergency fund? Once you come up with a number, try to find a deductible that is less than that amount. That way, you will never have to spend more than what you would normally have available on repairs from damage done to your home. 

Now, these lower deductibles will mean that you will be paying more in premiums for your homeowner's insurance policy than higher deductible plans. But, if and when something happens, you will be better able to handle the costs and will have greater peace of mind as a result. 

Now that you know some of the most important facts about home insurance, you can be sure that you find the right policy for your first home.