Once you’ve decided on the right home for you and your family in Connecticut it is important that you protect your investment. Buying a new home is often the biggest financial decision most people will ever make and in order to secure the money you’ve spent it is essential that you have the right homeowner’s insurance. Having a home without insurance is risking everything you’ve worked so hard for. Without the right homeowner’s insurance you could be held liable for injuries on your property, responsible for all payments due to damage caused by storms and natural disasters and at a total loss should your home catch fire and burn down. At By Carrier we want you to be at peace in your new Connecticut home so we offer some helpful tips for choosing the right homeowner’s insurance.
Know Your Home’s Value – Before you can determine the right homeowner’s insurance policy you need to know the value of your home. The value of your home is often determined by its location, size and the number of bedrooms and bathrooms. The neighborhood you are in also will affect the value of your home. A good tip is to look for comparable properties in your area that sold in the last six months. While there are many web sites that offer current real estate transactions this information is not always reliable so you are better off dealing with a realtor or having your home appraised by a professional.
Market Value and Replacement Value – New homeowners often get confused between the market value of a home and the replacement value. Replacement value is what it would cost today to rebuild a home from the foundation up while market value is what a willing buyer would pay for a home. Studies indicate that an estimated 60% of homeowners in the US are underinsured because they don’t insure their homes to replacement value. It may cost more than market value to rebuild an older home. Know the difference between these two figures and insure your home accordingly.
Preventive Maintenance – No matter how much insurance coverage you have it is always a good idea to practice preventive maintenance. Should a storm come along and tear off a section of your roof you may assume that your insurance will cover it. However, if the claims adjuster determines that the roof was old and in need of repair your claim could be denied, leaving you with a hefty repair bill. Don’t get caught off guard, be a responsible homeowner and fix small problems quickly.