5 "Don'ts" When it Comes to Homeowners Insurance
Buying a home insurance policy is one of the most important things that a new homeowner must do. It will make sure that you have a home in the event something terrible should happen, and will provide a layer of security for your belongings. However, there are some big mistakes that one can make when buying, choosing, or planning for a home insurance policy. Here are five important things not to do when looking for a way to keep your assets secure.
Don't lie about your information: It may be tempting to fudge the value of your assets for the sake of a lower premium, but doing so is dangerous. First, you will likely not receive all the protection you need. If your policy covers up to a certain amount, and you lie about the worth of your house (which is more than the amount), you will not be fully covered in the event your house is terminally damaged. Second, their records will not match your own; making the claims process more complicated than it has to be. Third, if caught giving false information, you have the chance of being marked as an untrustworthy customer, and you may find it harder to make claims in the future.
Don't forget to read the fine print: Many legal problems can easily be avoided by knowing exactly what one is signing. By reading the fine print, you know what is covered in your policy, what rights you have, and what can cause a claim to be denied. Far too many legal disputes occur because someone thought they knew what their policy did (or did not) cover, when, because they didn't read the document clearly, they were actually wrong.
Don't go for too cheap: We've all heard the commercial for low cost insurance companies: "Minimum coverage, for minimum budgets." However, such is not the case for home insurance. The cheapest plan on the market will likely not cover what you need it to, and this can end up costing you more in the long run. So, be extra sure to check the quality of the insurance plan, make sure it's up to snuff, and THEN worry about price. Quality is worth the extra money. When it comes to home insurance nj look for value in a policy, not price.
Don't forget to check what affects the rate: While the price of your home and your assets are the prime dictators of the cost of your insurance, there are other factors that play into it. One big factor is your credit score. If you have a lower credit score, you may end up paying more for your insurance. Other important factors include your occupation, your claims history (whether or not you have made insurance claims in the past), and even your pool, pet dog breed or trampoline. Be sure to read up on how these things affect your costs.
Don't be a victim: Many insurance companies will deny new coverage to people who have had a recent non-weather related claim. Because these "small claims" can add up after a while, companies can be hesitant to give coverage unless the person absolutely needs it. What this means is that you should take measures to ensure the safety and security of your own assets as best you can, because, unless your house burns down, your insurance might not.