If I can help you find the perfect Napa Valley property, please email me
One of the most overlooked, and probably the most important considerations in owning a home, HOMEOWER’S INSURANCE. Yes, I capitalized this for most of us get a policy when we buy a home and then continue with the same company, allowing their policy to renew automatically year after year.
The issue, policies limitations and coverages change and if you don’t review your policy ever few years, preferably ever 2 to 3, then when you have the unexpected and have to file a claim, you may be in for a BIG surprise.
A perfect example was my own policy which I had for nearly 25 years without thoroughly reviewing it. When I finally did, I found the replacement value my company used for my home was $200 per SF. After talking with a contractor I was having do some work on my home, he quoted closer to $300 per Sf due to when one has to rebuild a home, this added a lot of extra costs to the process. This is even with a current code update rider in my policy (this is coverage to rebuild your home to current code standards). Just imagine if I had a total disaster, who do you think will have to pay for the additional $135,700 it would take to rebuild?
Another big consideration is the cost of the policy. By going to a good insurance broker, she was able to bid my home insurance through several good companies and save my $150 per year. Based on what I was paying this was a 13% savings. On my home, automobile and umbrella policies, the savings was over $300 per year, a 10% savings.
Sure gives one incentive to be vigilant on reviewing your policies. Here are some additional tip regarding this.
- Buying a home is one of the biggest financial decisions a person will ever make, and that means he should take time to not only get the best rate on an insurance policy, but also the best policy for his lifestyle and home.
- Because a home insurance policy will protect a homeowner against financial loss from things such as theft, fire, flood, and other liabilities on the property, it’s important to get the right policy.
- Purchase enough insurance in the event of a total loss, according to the Insurance Information Institute (III), which provides insurance information to the public, media, and government regulatory agencies.
- Because home insurance also covers a homeowner’s possessions, the contents of the home should also be included for the estimate.
- To get the best rate possible, a homeowner should take the highest deductible with which he’s comfortable. The deductible is the amount a homeowner pays out of pocket before insurance coverage is paid.
- The III says that since most people only file a claim every eight to 10 years, having a higher deductible saves money over time and preserves the insurance for when it’s really needed.
Thank you for reading this post. If I can ever be of help in finding you the perfect property here in the Napa Valley, please email me at Curtis@NapaValleyAddress.com
Your Napa Valley Broker Extraordinaire, selling Real Estate here from its heart, Yountville
My website & blog: www.NapaValleyAddress.com