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Homeowners Insurance Q:
What are some ways to pay lower rates for homeowners insurance?
Many insurance companies offer better rates if a home is disaster resistant. For example, modern heating and electrical systems reduce the risk of fire. Discounts may also be available if a home has smoke detectors, security devices such as burglar alarms or dead-bolt locks. Contact us to find out if you are eligible for these discounts. Q:
Why do I need flood insurance? Federal law requires your lender to make sure you have flood insurance if you have a home loan and live in a federally designated flood hazard area. Q:
I'm thinking about buying a condo. What kind of insurance might I need?
A condo association should have a master policy that covers the basic structure of the building. Contact us about a condo owner’s policy that would cover the things inside the unit you own. Q:
Will my rate go up if I file a homeowner’s insurance claim?
Usually, one claim will not cause a rate increase. However, more than one probably will.Q: Is my personal computer and printer covered by homeowners insurance? Many policies cover computers and equipment. Generally, policies limit how much will be paid if there is a covered loss. Limits on computers average between $2,500 and $5,000. If yours is worth more, you may want to ask your agent about adding extra coverage. Q:
When should I call my agent to find out if I need more homeowner’s
coverage? Check with your agent any time there are changes to your home and life. Some examples include: adding a room to a home, starting up a home-based business, and purchasing especially valuable items such as jewelry, fine art and antiques. Q: My
water heater leaked while I was on vacation and the flooring in the utility room
is ruined. Does homeowners insurance cover all of this?
Homeowners insurance will pay for damages to the flooring. It will not pay
for a new water heater.
Q:
Why is the coverage amount quoted for homeowners insurance lower than the
purchase price of my home? The purchase price of your home reflects the market value - an amount that's based on the value of the land, the dwelling, the location of the property and other factors. The insurance coverage amount reflects only the dwelling's value because the land and location would not be destroyed if there were a fire or other covered loss. Q: My
home loan company hasn't received a copy of my homeowner’s insurance policy.
What should I do?
TIP! Consider increasing your deductible in order to
make a guaranteed replacement provision more affordable.
Increasing your deductible from $500 to $1,000 can often reduce your premiums.
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