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Owning A Home: Buying a Homeowners Insurance Plan

Posted by Martin Archacki on Friday, October 23rd, 2015 at 10:00am.

When it comes to owning a home, you should always expect the unexpected. Lightning, fallen branches, fires, costly repairs, busted pipes, and theft are things you do not typically think of when you purchase a new home, but these inconveniences occur nonetheless.

It makes sense to protect the biggest investment of your life. Homeowners insurance ensures the safety and financial stability of you and your family.

What does a homeowners insurance plan cover?

When you purchase or refinance a home, your lender will require that you have a homeowners insurance plan, as proof that their investment is secure. It is important to have the home inspected to make sure there are no problems that might be affected by insurance.

According to the Insurance Information Institute, homeowners insurance “covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.”

A basic homeowners insurance policy covers the structure of your home, your personal property, liability, and living expenses in the event of an insured disaster. A few exceptions like floods and earthquakes require separate policies.

Note: Routine maintenance issues like replacing gutters and lawn care are not covered by homeowners insurance.

Homeowners Insurance Deductibles

When finding a homeowners insurance plan that fits your needs, consider the impact deductibles have on your overall coverage. It is desirable to have a plan that will repair or replace your home and cover the cost of all of your possessions.

Low Deductibles

Paying low deductibles on your insurance means that when disaster strikes, you will pay less out of pocket to fix the damage, but your monthly rates will be much higher due to this.

High Deductibles

High deductibles mean that you will pay more out of your pocket if a disaster occurs, but you save money in the long run, since most people file a claim only once in every decade. It is more common to choose a plan with a high deductible.

If you do not make small claims, your costs will stay down.

Atlanta Homeowners Insurance

According to an insurance premium study done by Value Penguin, comparing 21 insurance companies in Georgia, the average for the state was “$1,987 with Ameriprise, Allied, USAA, American National, and Nationwide being the cheapest. Hartford Insurance ranked as 370% more expensive at $4,759 per year on average.”

Tornadoes are a common problem for Atlanta residents. While homeowners insurance does cover some damage, many policies are under-insured. A high-deductible insurance policy plus an additional Tornado-Policy would be a wise strategy for Atlanta homeowners looking to protect their homes and possessions.

Furthermore, while hurricane and wind coverage is implemented, Atlanta homeowners should look into flood insurance if they are if their neighborhood happens to be in a flood hazard zone.

Homeowners Insurance Discounts

Did you know that you can get discounts on your homeowners insurance policy by adding safety features to your home?

The following additions could lead to big savings on your premium:

  • Dead Bolts
  • Smoke Detectors
  • Burglar Alarms
  • Fire Alarms
  • Storm Doors

Don't let your home go unprotected. Talk with a professional real estate agent today to find out which homeowners insurance plan is right for you.



1 Response to "Owning A Home: Buying a Homeowners Insurance Plan"

Patricia Andrson wrote: All my life I've thought that having a high deductible was good but now that you've explained it I can see that having a low deductible is a lot better! Homeowners insurance is good but all the terms can be confusing. Thanks for taking the time to explain why I need it and what some of the terms mean. It would be great if in high school they had a class dedicated to learning about taxes and insurance so that I would have known this sooner!

Posted on Thursday, March 24th, 2016 at 7:38pm.

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