It seems that there’s insurance for just about everything, but let’s face it: we live in a world where danger and risk lurk around every corner. And when you own property, so much can go wrong at such a fast rate that it's crucial that you have property insurance. In fact, you have to have insurance on your property.
When something disastrous happens, you want to be able to rebuild the property and replace everything that was attached to it, including the washroom, carpet, windows, appliances, and anything else that carries value.
Whatever homeowners insurance you purchase, get the one that gives you the most peace of mind. In other words, perpare for the worst so you can sleep well.
Also, if you own an apartment complex, or any other property that houses tenants, you’ll need enough liability coverage to protect yourself in case someone is injured on your property and wants to sue you. For these reasons, it is highly recommended not to skimp with insurance for your property.
Depending on where your property is located, you'll need specific coverage plans that host a slew of threats that are both relevant everywhere and specific to certain locales. Also, you should consider what exactly you need coverage for because you don’t want to waste money on plans you don’t need.
In order to do this, walk around and through your property and make a list of things that you might want protected, and in the meantime record various factors that are of concern. Also take note of the local geography and weather conditions because these will impact your coverage.
For a few examples, consult the list below:
• The structure of your property
• The type of property
• Value of the property
• Value of possessions
• Living expenses
• The possibility of losing income due to vacancies
• Your liability to others
• Crime rate
• Potential disasters, such as hurricanes in Florida, earthquakes in San Francisco, wild fires in Southern California, tornadoes in the Great Plains, etc. You will need coverage for these.
The key to insurance, though, is that you’re only insured against sudden and accidental occurrences, such as a fire, damages incurred from a riot, or a tornado. Losses wrought over an extended period of time are not covered and can include dry rot from leaking water, rusty pipes, any anything else of that long term nature.
So after you’re done with your list, you can present it to your insurance agent to discuss what kind of coverage will work best for you. Remember, you should only pay for what applies to you, so it’s important to do your homework beforehand.
When applying for insurance, create competition among the various companies. Inquire with a few different suppliers and get bids from each of them, letting them know that you’re looking at other companies as well. They want to serve you and will offer you a lower rate if they know they might lose a potential customer.
If you own more than one property, you can often reduce your fees if you add on another property. Ownership of multiple properties shows that you’re competent and serious, both good indicators of a client who will not only pay his bills but might also expand his real estate empire. Therefore, the insurance companies will take care of you if you’re going to be a long term and growing customer.
Learn more: How to Save Money on Homeowners Insurance