Home | About | Contact
Divider Auto Loans Divider Mortgage Loans Divider Debt Consolidation Divider Credit Cards Divider Credit Repair Divider Car Insurance Divider Health Insurance Divider Life Insurance

Homeowner’s Insurance - A Story From Experience

Homeowner’s Insurance - A Story From Experience

An Insider’s View to Homeowner’s Insurance
It was a fire, I was the only one at home and sleeping - the smoke detector went off, waking me up and sending me running into the living room to see the wall behind my desk ablaze. When all was said and done, that one room was mostly destroyed and smoke damage had hit every nook and cranny throughout our modest 1500 square foot home. After the smoke cleared (pun intended), what next?

Your Mileage May Vary

This is critical to keep in mind. Most people when they buy a house understand that they have to get homeowner’s insurance in much the same way that when buying a new car with a loan you have to get insurance. Technically the car/house belongs to the bank and they want their investment protected. The insurance you get will usually be a bare-bones kind of coverage to keep your payments low. You might want to take a good look at the policy you’re being offered, however. For us, our policy was for only $30,000 for our personal effects, (we lost pretty much everything to smoke damage and the $30K barely covered it), and of course money to cover the structure if it was destroyed. Your insurance company will send out an adjuster after a claim to find out how much they think they should pay you. What’s your home worth? Is the damage to the hosue total, or can they get away with just giving you a check for a lesser amount and have you make repairs? Is the house liveable while repairs are being made? (This last is another thing you want to look at carefully in your coverage - you may well end up having to pay for your own living arrangements during the time you are ousted, if you are not careful).

What Does Homeowner’s Insurance Cover?

Don’t just take the first insurance that hops along. You may have stuff in your home worth much more than the standard policy most mortgage companies will require or auto-tack on. Check your policy carefully to make sure that the maximum allowed for damages - especially personal effects - is sufficient for you to go and replace all of it ‘tomorrow’ if you had to. Don’t overdo it, though. If you only have $45,000 worth of stuff and you take out a policy for $100,000, you will pay higher premiums and when (Heaven forbid) the time comes, you will have to justify to an adjuster how your $45,000 worth of stuff is worth a check for $100,000–no easy feat.

How Do I Get My Money?

Via check, usually and how long it takes depends on your adjuster and your persistence. A few weeks if both are good, maybe a couple of months if not. Depending on the size of the damage and the claim, the insurance company may want to bring in specialists to determine for certain if the damage to your home was accidental. Once they’ve determined everything is on the up and up and they have verified your claim (if any) for personal property damage, (and theywill verify, making you jump through some hoops to prove what was lost), they will send you the amount they believe is fair, which you can choose to contest if you have the internal fortitude to wage the battle.

Select Insurance Type:
Enter Zip Code:

You may also be interested in