Owning a home is likely the greatest investment you’ll make in your life.
That’s why homeowner’s insurance and warranty are an absolute necessity, especially with all the risks that we’re exposed to today, like natural calamities and economical crunches.
To determine which insurance policy and warranty is the best choice to cover a homeowner’s needs, many factors need to be carefully assessed.
To set you on the right path, here is some vital information and tips on how to choose the right policy.
Home Insurance Basics
Before choosing a home insurance policy, it’s imperative to know what these policies cover.
Here are some of the basic protection that house insurance generally covers:
- Protection against accidental fire
- Covering damages from lightning strikes
- Coverage of damages due to explosions
- Coverage of repair work in cases of home vandalism, due to riots or any other incident
- Protection against damages due to objects falling out of the sky
- Damage caused by natural calamities, such as hail, volcano and windstorms
- Malfunctioning of heat control systems
The above mentioned items are just some of the protections that most home insurance policies tend to include in their basic policies. You can add additional coverage if necessary, but this usually increases the premium.
Most, if not all, of home insurance policies require a deductible, the amount that you will cover out-of-pocket if a claim is made. Insurance will cover the additional costs.
Limitations of Home Insurance Policies
While it may seem like home insurance is the best way to go, there are some limitations with these hedging contracts as well.
For instance, any insurance policy will enforce a limit dependent upon the premium that the user pays every month. The limitations differ, depending upon the policy chosen and the value of the property being insured.
Also, care must be taken to see that the policy being chosen is based on the total cost of rebuilding the home in case of damages, and not based on the price of the existing home.
This way, a buyer can actually have hopes of being covered by his or her policies, when or if the time comes to use them.
Additionally, most home insurance plans do not cover for wear and tear or repair of costly home components – this is where home warranties step in to fill the gap.
Added Protection through Home Warranty
Unlike home insurance, a home warranty offers a different kind of protection and functions as a helpful addition by covering for situations that most homeowners insurance plans do not.
Home warranties are a service contract that provides repair or replacement of major home systems and appliances, including plumbing, electrical, heating and air conditioning.
Home appliances that are included in the warranty can vary, but tend to be costly appliances like refrigerators, dishwashers, washer/dryer, ovens, and so on. You can also cover large systems like a pool or spa.
Basically, the warranty covers components that typically breakdown over time due to normal wear and tear.
Home warranties are generally very affordable (about $20-50 a month) and offer peace-of-mind to the home owner. They can be a financial life-saver in cases where the covered appliances or systems break down.
Home warranties are available throughout most USA and are offered in individual states by local and national providers.
Where and How to Start your Research
A prospective homeowner must choose a policy depending on his home and its contents as well. Here are some tips on starting your research for the right home insurance and warranty policies:
Online Home Insurance & Warranty Quotes
Many home insurance and warranty providers offer generic quotations on their sites which can help get an idea about the process.
Not only does this help formulate a well-informed decision, but it also helps provides a general estimation on the premium cost the homeowner will need to pay once the policy is selected.
Using Home Insurance & Warranty Comparison Websites
There are several home insurance and warranty websites on the internet that can provide useful details on plans offered by different insurance companies.
Many sites allow the users to compare the benefits and details of the policies, so as to choose the plan that best fits their requirements and budget.
Review Numerous Home Insurance & Warranty Offers
Just blindly choosing the first policy offered is not a good idea. Some insurance agencies offer great deals to entice the customers into making decisions that they may, in fact, regret at a later stage.
Research is imperative. After all, there could be a better deal available, instead of the first one offered or reviewed.