These days, the American Dream has been watered down to just being able to buy a home for you and your family. This is especially true for younger generations accustomed to renting, which can be costly. Buying a house that makes it as worthwhile today as it did yesteryear, your home becomes your most significant investment. You own the property. You can keep it, sell it, rent it out to strangers, pass it down to your children, or make it your retirement palace. Either way, it’s yours to do whatever you wish.

For this reason, home insurance becomes an equally important factor. There’s almost no sense in owning a home if you can’t protect it, and home insurance does just that: it protects it. Besides, we’re all too familiar with things going wrong; likewise, we all know by now that things never go according to plan. So, to protect your most precious investment, you must buy home insurance. If nothing else, it’ll give you peace of mind.

You have to get the insurance anyway. If you’re still paying off your home via a mortgage loan, the bank still owns part of it and will require you to protect it. Join us at Fast Payday Loans, Inc. as we explore the importance of home insurance along with tips to help you.

Home Insurance Tips For You Today

Tip #1: Understand The Definition Of Home Insurance

Our first home insurance tip is to ask and answer, "What is home insurance?" If you're familiar with renter’s insurance, it’s the same. In exchange for coverage, you must pay a monthly or annual premium. If your home is damaged, you’re still responsible for covering any repairs until you meet your deductible. The deductible is the amount you’re required to cover out-of-pocket. Once you’ve maxed out your deductible, the insurance company takes over. Your insurance company will reimburse you for as much as you’re covered for. With that said, the larger your deductible, the cheaper the insurance premium. Weigh your options so you're sure you make the right call.

Tip #2: Discover What Homeowners Insurance Covers

There are two kinds of policies: named-peril and open-peril. Named-peril policies disclose a list of all covered risks. Anything not on that list is excluded from the policy. Open-peril policies (which cost way more) only disclose risks that are not covered. Anything not mentioned in this type of policy is covered. Otherwise, both policy types cover personal items within the home and a percentage of the home's value. Also, liability protection is always included for legal protection in case somebody has an accident on your property.

Despite everything basic home insurance covers, it typically does not cover any damage due to natural disasters: fires, floods, tornados, hurricanes, earthquakes, etc. You must purchase an additional policy just for those specific things.

These extra policies are known as ‘riders,’ which work as an add-on to your existing home insurance policy. Depending on where you live and other risk factors, they can cost little or a fortune. For example, if you live in the state of California, earthquake and fire insurance would cost more than if you lived in Washington.

Tip #3: Analyze How Much Coverage Is Needed

Now that you know a little about home insurance, you must review how much coverage you need. To find out, you’ll need to know the total replacement value of your home based on the current market. This should also include expenses for all materials and labor. You can get help from the insurance company to determine the total costs.

Tip #4: Make Sure You Cover All Your Bases

• The house: Most insurance companies can cover the total current market value of your home, including the property. But because the land doesn’t need to be insured, you can expect to pay to insure more than required.
• Everything in the house: Opt for replacement value, not cash value, for items within your home. This is important because cash value only covers things based on their current market value. This would be great if you covered rare collectibles, but not so great if you’re trying to replace a damaged dishwasher. Replacement value will replace damage no matter their value.

Tip #5: Keep A Property Checklist 

Keeping a record of all your valuables is best to make life a little easier under not-so-easy situations. It sounds easy enough, but it can be a splitting headache if you’re starting from scratch. Here are a few tips to help you get it done:

• Write down everything in your house worth replacing: TV, furniture, appliances, etc.
• Use the camera on your phone to take pictures of the stickers on these expensive items. These stickers should contain the item’s model number, serial number, and the manufacturer's name.
• While at it, you might as well take good pictures of the items. Video footage works, too.
• Keep the receipts! For any big purchases in the future, be sure to hold on to the receipt. These days, people like to scan their receipts and store them on their phone or computer.

After having said all that, insurance doesn’t cover everything, and if you’re ever caught in a dire emergency, a little extra cash could be all you need to pull through. Contact your local payday lender at one of these payday loan places for fast cash.

Now that you have a basic idea of home insurance and how it works, it’s time to shop for a provider! Good luck, and may you and your family be safe and your home covered.

Know Your Emergency Loan Options

If you are facing a troubling month where you're unsure whether you'll be able to afford your insurance payment, consider a payday loan to secure the funds on the same day you apply quickly. In as little as 30 minutes, you can have up to $1,000 deposited into your bank account, which means that you can ensure that your insurance stays up-to-date and paid for.

At Fast Paday Loans, Inc., we understand that paying for emergency home repairs can be challenging. Fill out our online inquiry form today to learn more about obtaining one of these convenient loans immediately! After submitting the online form, our friendly loan representative will contact you to discuss the payday loan process in Florida. It's that easy! Reach out to us today. We're here to help. 

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.