Insurance is an important subject for new home owners too. There are many aspects of this kind of insurance. Overall, a well-researched home insurance serves as an essential move for protecting one’s investment in a new or existing property.

Irrespective of the debate whether you really need a home insurance or not, it is always smart to possess this kind of protection anyhow. Here, we present the basics that guide the features and functionality of home insurance policies. These pointers will help you get your sweet home insured in no time.

What Does the Home Insurance Policy Provide?

The features of a typical home insurance policy would cover the costs associated with:

  • Damage to the house’s interior or exterior portion due to fire or any other natural calamities.
  • Damage to personal belongings such as clothes, appliances, furniture and other home contents.
  • Personal liability for any injuries or other damages inflicted on you or any of your family members.
  • The rent incurred for any alternate accommodation facility where you will have to stay when your own house gets repaired or rebuilt.

Types of Coverage for your Home Insurance

There are fundamentally three types of coverage:

  • Actual Cash Value: This is the value that is composite of your house as well as your belongings, after subtracting the amount of depreciation.
  • Replacement Cost: This is nothing but the actual cash value that is calculated without subtracting the amount of depreciation from your personal belongings. It means that you would be able to rebuild your home in line with its original worth.
  • Extended or Guaranteed Replacement Cost: This type of coverage is also known as an “inflation-buffer” where you get paid for the costs of rebuilding or repairing your house; whatever the figure may be at that particular point of time. This holds true even if the cost is more than the limit on your policy. There are certain insurers who even offer to pay more than the amount for which you may have purchased your house, but up to a certain limit; this amount is generally 20-25% higher than the original value of your property.

Making a Wise Selection of the Insurance Company

Obviously, price is an essential determinant while choosing the most appropriate insurance company for yourself; but it should not be the only basis of selection. When it is about insuring your home, you have to make certain that you are dealing with an insurance provider that is both lawful and creditworthy. It is suggested that you contact the insurance department of your state for getting a precise idea about the licensing position of the insurance company selected by you.

Secondly, you may like to conduct an in-depth evaluation of the financial strength of the insurance company. You can do this by going through the top rated websites of credit agencies. Lastly, consult your friends, colleagues and relatives for recommendations. It is always beneficial to gather knowledge from others’ experiences. So, ask someone who has claimed the insurance companies’ service and evaluate its pace of appraising any claimed amount before moving ahead.

Winding Up

Look around for an insurance company that is reputed for providing reliable services, timely compensations, and transparent terms of engagement. Getting a good hold upon a comprehensive home policy can be a hectic task. But then, with smart choices and intelligent decisions in place, you can definitely make your home a secured place – easily and conveniently.