Did you know there are different kinds of Home Owners Insurance? Most agents don’t tell you that however. When you call and say you are buying a home and need to get insurance…they give you the basic Home Owners Policy. You are covered for most things you can think of, but they neglect to tell you that they depreciate items over time.
Example: You bought a home, and a hail storm comes through and you need new shingles. You think, I have a $500 deductible and insurance will pay the rest. Think again! You have 20 year shingles in the home, and they are really only good for about 15 years…the singles are 10 years old, so they are only going to pay one third the cost of the roof. So if it is $6000 to install new shingles, you have to pay $4500. HOWEVER! If you had purchased Replacement Value insurance, you would pay your $500 deductible only.
The things we learn in life lessons. My home had been broke into about 15 years ago. They stole jewelry, TV’s, etc. I had receipts, photos and those things that most folks probably don’t have. Well by the time they depreciated out the TV’s and VCR’s, etc. I didn’t get squat! Unless you have a jewelry rider on your policy, there is a small limit of usually $1000 for jewelry and computers and such. I had about $38,000 in property stolen that I had receipts and photos for, and I received a check for $1050.00 from the insurance company.
So I always let my home buyers know to ask about Replacement Value Insurance. It isn’t that much more a year, and believe me it will more than pay for itself if you only ever need it even once.
You still need Jewelry or Computer riders if you have more than the company’s allotted amount.
Also…did you know when you buy a car, and get the life insurance to pay if off if something happens to you…that the insurance company can cancel it within the first two years. So, if something were to happen to you or a spouse, all they have to do is refund the monies you paid to date and they are off the hook. It is true! It’s in the small print! (Another life experience)
Start your search for a home at www.buenavistaproperties.net