Looking into insurance can be a confusing process. Here are answers to some of the most common questions that will help you determine the home insurance that is best for your situation.
1. Do credit scores affect premiums?
Yes, they do. According to regulatory associations, there is a direct correlation between credit scores and individuals getting into accidents, or cancellation policies due to non-payment. Therefore, premiums are higher for lower credit scores.
2. If my garage burns down and my car is in the garage, is my car covered under my homeowners insurance or car insurance?
Your homeowners insurance does not cover the loss of your car, even though it was "in your house." You typically must have a form of comprehensive physical damage coverage on your automobile insurance policy for it to be covered.
3. I have inherited valuable jewelry; if my home is broken into and it is stolen, will the jewelry be covered?
Basic homeowners policies have limited coverage for jewelry. Depending on the value of the jewelry, you may want to purchase a Personal Articles floater, which provides additional coverage for jewelry higher in value. Contact your Insurance agent to see how much is covered under your basic policy.
4. What factors should I consider to determine if I am getting good value for my homeowners insurance premium?
It is a fact that most homes are underinsured. During every renewal, ask your Insurance agent questions about what is covered under the policy as well as optional coverages, like flood, earthquake, fire, etc. Then choose a deductible that's right for you. The higher the deductible, the lower your premium. A high deductible is fine, but make sure you have the money for out-of-pocket expenses if something should happen.
5. What is NOT Covered on my Homeowner Insurance Policy?
Every homeowners policy is unique, but in many cases, you need extended insurance to cover things like by-laws, Earthquake, Flood, and Intentional Acts. These optional coverages do not come standard on most policies. Also, standard wear and tear is not covered and typically isn't coverable.
6. How is condo insurance different from homeowner insurance?
When you purchase a condominium, you are not purchasing the building; you are purchasing a unit inside the building. You are also most likely a part of a condo corporation that fixes external structural damages. Homeowners insurance covers the structure as well as the contents inside the home.
7. I own a home-based business, do I need insurance?
An extremely small business, such as a business operated by one or two people out of a home, may not need workers compensation insurance, but it often needs more property and liability insurance than is provided in a typical homeowners policy.
Home insurance is a key requirement for your mortgage. The Auxilium Team is happy to provide you with a referral to our trusted partners for a consultation and quote.