Faqs About Your Home Insurance

Have you ever sat down and (seriously) tried to figure out what your home insurance agent was telling you when they're talking about your insurance policy? Pixar probably said it best-"It's like he's talking to me, I just know it!" (Finding Nemo, 2003)Hammering out the finer points of your particular policy is something you're going to have to figure out with your agent, but why not get a start here with some of the most frequently asked questions in the home insurance biz?

Question #1: Why Do I Need Home Insurance?

You would be amazed at how many people don't realize the importance of working with home insurance companies to make sure their home is properly insured. Think of it this way: If your house burned down, would you be able to afford to buy another one? What about rebuilding? Insurance will make sure you're never in a position to have to find out.

Question #2: How Much Home Insurane Do I Need?

This is a little trickier than just determining whether or not you need some form of home insurance. If you're renting your home you need to have just enough insurance to cover the cost of your possessions. If you own your home you need to consider teh cost of rebuilding. Don't just look at the number on your appraisal-this includes the cost of your land as well and can easily result in paying too much for your insurance coverage. (You aren't likely to need to replace your grass after a storm. Your roof is another story!)

Question #3: Does My Home Insurance Cover Items in My Car?

One of the biggest shockers most people face when they start talking about their insurance is the realization that their auto insurance won't help replace their stereo speakers if they're stolen or destroyed. Fortunately, your home insurance will-along with anything else you left sitting around in your backseat.

Question #4: What's Going to Happen When My Son/Daughter Takes My Computer to College?

Today's college freshmen are showing up with more money in electronics than ever. With theft sitting as the single most common crime committed on a college campus it's no wonder parents are a little worried about their children's belongings. The good news is, items in a dorm room are still considered to be part of your house and eligible for insurance coverage; however, make sure you let your insurer know before your child leaves. Your home insurance claims may not be covered if your insurance company didn't know the item wasn't going to be at your house.

Question #5: How Much are My Deductibles?

Deductibles, if you're not familiar with the term, are the amount of money you pay your insurance company each time you file a claim. The amount of your deductible is going to be between you and your insurance provider. Higher deductibles usually equal lower premiums, but you don't want to set your deductibles so high you can't afford to come up with the money when you need to. Most experts recommend setting your deductibles right around $1,000 per claim.

Which is still less than it's going to cost to replace your roof.