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Insurance. Spend a little extra now and Save later!

Insurance tips may not be one of the things that you want to read about all the time, but in the wake of the various tropic storms, hurricanes, floods, fires, and earthquakes, it is a good time. Everyone should review what their homeownerís insurance covers and what you can expect if a disaster were to strike your own life. 

After a disaster happens, it is too late to think about what you wish your homeowners, your car, or your medical insurance would cover. In this article, we are going to focus on your homeownerís insurance. 

Even though I donít have all the coverage in the world on my own home, I donít live in a flood prone area, I donít have many people in and out of my home, I donít own a dog, and I donít have a trampoline Ė read on to learn a bit more!

What you are going to have to do is compare what some of the benefits are to having the insurance, which you can set different limits, or having to bite the bullet and pay out of your own pocket when something happens. 

Adding riders to your insurance policy is going to raise the premiums that you pay, but in the long run, keeping your investment of your home in tip top shape is one of the most important things that you can do for your own financial future!

One thing that is important, if you can afford it is to purchase insurance that includes replacement cost, not depreciated costs. For example, if you had a kitchen fire, and your refrigerator was involved in the fire, the refrigerator was three years old the insurance company would take off xxx dollars from the cost of replacing your fridge if you didnít have replacement cost. Replacement cost insurance can be a little more expensive, but really in the long run it is worth it in case you have a major loss. 

Include living expenses on your house insurance. What this means is that if your house did burn down, if it was flooded, or if there was another problem with your home and you couldnít live in it, the insurance company will pay for you to live somewhere else so you can still be comfortable without spending lots of money to set up house while your home is being fixed. 

Find a policy that is going to pay you up front when you have a loss. If your home were to burn down, some insurance policies will only pay you after you provide them with receipts of what you have replaced. It can be costly and difficult for many homeowners to do this up front. Having the money and then making the purchases makes your life that much easier later on if a disaster should happen. 

Every year you should take inventory of what is in your home and keep it in another place. You can do this with paper and pencil, writing down sizes, colors, costs etc, or you can use a video camera to do all the work for you. Keeping this information in another place besides your home will aid you tremendously in case you have a disaster or your home has been robbed. 

You can keep your inventory in a lock box, in a safety deposit box at the bank or even with a friend at their home. It is easy to do and takes just a few minutes. Having an inventory saves you time later and stress about what is really missing from your home. 

If you have a lot of jewelry, computer equipment, cameras, or antiques, you should have increased limits on your insurance policy to cover these items. If you do not have some types of items specifically listed on your insurance policy it can be difficult to be paid for them if something was to happen. 

If you have not looked at your insurance policy in a few years, it is a good idea to look at it now. What you thought was good before might not be enough coverage now. For example, you had a $50,000 policy on your home, but then you put an addition on that cost you $15,000, you might want to raise your policy limits so you have enough coverage on your home. 

What are some of the other things that you should look at? 
Check for flood insurance. 
Do you need sewage back up protection? Do you live in the city or in a town?
Check for coverage if your dog bites another person. 
You might be surprised, but if you have a trampoline, you need special insurance for liability in case someone falls and gets hurt. 
If you have a cat, you might want insurance in case the cat scratches your neighbor?
If you have a swimming pool, you need other additional replacement and liability insurance. 

What coverage your mother, father, brother, sister, neighbors or friends have is not going to be the coverage that you need. Each house is different with various types of needs. Contact your insurance agent and discuss what your investment needs and your insurance needs for protecting your home are for the best possible solution.





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