Importance of Home Owners Insurance
Average cost of a home in America from 200 to 300K
For most people their home will be the biggest investment they make in their life. Many people in America take 30 plus years to pay off the mortgage on their home. The average price of a home in America today is a hefty, $272,000.00. That is definitely a major investment for most people. A home is an investment that is worth taking every step possible to protect. This is the answer to “why do I need homes owners insurance in Augusta, Georgia”. Homes owners insurance is based on several variables including, the price of the home and where the home is located. Like other forms of insurance, home owners insurance is computed based on the risk of a claim.
Whether as a landlord or plain homeowner, the average cost of home owners insurance in Augusta Georgia, ranges between $300.00 and $1000.00 a year. When you compare that amount per year against the homes replacement cost in the event of a tragedy, it becomes apparent spending between three hundred to a thousand dollars a year to avoid having to come up with almost three hundred thousand is a sound and safe decision. Here’s a fact that answers this question, “Why Do I Need Home Insurance Augusta Ga”?
Dog bites and homeowners insurance In the first half of 2012, the Insurance Information Institute reported that one out of three liability claims for homeowners insurance was in relation to a dog bite. The Institute reported that total liability cost in 2011 for this type of claim amounted to almost $479 million. A major insurance provider, State Farm, recorded over $109 million in payout to victims of dog bites in 2011.
Need Insurance to Get a Loan
According to the U.S. Department of Housing and Urban Development, most banks or other lenders require that you have homeowners insurance on your house before they will finalize the loan. In addition, If you do not carry a home owner’s policy to insure your house, your bank or lender will usually purchase a home owners policy ( they don’t look for the cheapest either) for you and add that cost on to your monthly mortgage payment amount. This will most likely be more expensive than if you simply purchased coverage yourself.
You may be able to lower your homeowners insurance cost by grouping your home owners policy with your car insurance or other types of insurance policies. Insurance companies and agents call this bundling. Your insurance agent can give you the details. Different insurers have different discounts based on their insurance products.
Home owners insurance is a necessity
Replacement cost coverage home owners insurance is different from market value coverage. Replacement cost coverage means that if your house is completely destroyed by a covered event, you will be reimbursed for the total monetary amount it costs to replace the home. This is important, since you may not be able to buy a home comparable to yours without the replacement cost coverage.
Riders, or additional policies may be required for covering special
or expensive items. If you have a very expensive ring or other jewelry you want covered you will likely need an add-on policy to cover it. The same is true if you have other items that aren’t found in every home but have significant value.
Many people are surprised to find the you may not be protected in certain situations unless you purchase additional coverage for specific natural disasters. In many regions floods are not covered and require a specific separate policy. In addition, Hurricanes, tornadoes, etc. may not be covered by your home owners policy. unless you have a specific policy to cover these types of disasters.
Homeowners whose homes are located along Tornado Alley pay more for homeowners insurance because of hail storms and tornadoes. In Colorado, for instance, half of the premium that a homeowner pays is for coverage against damages arising from hail and tornado disasters.
Be Safe, Keep Records Of Your Property
Keeping records is key. If you buy expensive electronics that you want your home insurance policy to cover, it is a great idea to keep the receipts for proof of ownership. make electronic copies but be certain to have those receipts in the event that a claim is needed.
A video and written home inventory is also important. A home inventory helps to know the value of your items. This is very helpful in deciding the coverage amount you need to purchase and in proving your losses to the insurance provider.
There are ways to reduce the costs associated with home owners insurance. One good way is to install a security systems in your home. Often a security system will reduce the chances of a robbery or home invasion and thereby lower the risk of a claim in the eyes of your insurance provider. This can reduce your monthly premiums and of course, actually help your family to be safer.
Increasing your home owners insurance policy deductible amount can also lower overall homeowner’s insurance costs. Your policy deductible is the amount that you are required to pay upfront in the event of a claim, before the insurance company begins to pay anything. If you have the means and can afford a higher deductible, it can result in a lower monthly payment to the insurance provider.
Most importantly, ensure you have sufficient coverage to protect your assets. A good homeowners insurance policy, doesn’t just cover your costs if something happens to your home and possessions. It will also pay your legal expenses and damages if someone is injured in your home (personal liability claim). Having enough liability coverage in the event that you are sued is absolutely necessary to ensure you are financially protected for your future.
Getting and maintaining the proper type and amount of home owners insurance can be the difference between financial bliss and extreme hardship. Ensure you home, family, and future are protected. Call the best independent insurance agent and agency in Augusta, Ga and not only protect yourself and your property but also take advantage of the increased discount an independent agency can provide! Call now and protect your future: