Securing Your Home: Insurance Edition

It wasn’t my goal to flood the website with non-stop news from Hurricane Harvey but I did want to keep the people informed on some necessary information. . .

In the wake of this treacherous storm along with the passing of Hurricane Katrina’s 12 year anniversary I did want to point out that many of the victims will be forced to start their lives over, completely, as some residents were not holders of home owner or rental insurance policies, more importantly, flood insurance policies. Insurance has a way of breaking the pocketbook at times and some of us have to make the choice between groceries for the week or paying the insurance on our homes. I can openly admit to postponing the purchase of a rental policy of my own and this scenario happens more often than not: my car insurance company constantly asks me if I want to bundle and my frugal (okay, cheap) side submerges and I respond with a “Yes! I would love to bundle!” followed by a ” Not right now, however. . .” and it’s been sitting in my spirit for a while now [especially when my subpar culinary skills are at work in the kitchen and I spark a burner,sheesh].
I’m a firm believer of being safe than sorry and I grip my purse very tightly as it is but hypothetically speaking if something were to happen to my home with me being at an uninsured status, I would lose my mind! Insurance can be a tricky thing because if you search high and low for a good bargain and skimp out on the specifics (coverage) you can also be at risk. Many home owners in Houston are facing this as well, they call their provider and they spell out the facts and X-Y-Z isn’t covered and in trying times you just cannot afford the repairs. What is pretty mind blowing is that water or flood damage isn’t something that most home insurers include in their plans. You don’t necessarily have to live by the water to have protection, and you certainly shouldn’t pay for what you don’t need but it’s certainly something to think about if you have an interestingly placed washing machine. If you are pondering on completing that transaction make sure you check a few things out, CNN Money says :

You’ll need deep coverage, up to and including 100% of your home’s replacement cost. By insuring at, say, 90%, you’re making the reasonable bet that your home won’t ever be a complete loss. That may be a reasonable bet but if you want to play it safe, insure at 100%.

  • Make a list of your home’s contents for a more exact estimate of your needs
  • Pick a deductible (the amount you pay before the insurance kicks in). The higher you go, the more you’ll save.
  • Seek a company with no cap for Guaranteed Replacement Cost.
  • Consider umbrella liability coverage, which is additional coverage over and above your regular homeowners liability limits.

This is such an unfortunate time for those impacted by the storm with no security rope and I can only hope that this gives you something to think about if you’re without protection. It doesn’t necessarily have to be a flood as fires a far more common but either way, let’s work together on prevention. A few more valuable tips if you live in more risky areas like California make sure your policy covers earthquakes, flood insurance can be obtained through the Federal Emergency Management Agency, and if you own a home-based business you may need to purchase a Business liability policy separately if your business is worth more than $2,500.00.
Once again, I love you all and I hope this was beneficial to you if you own or rent your own homes, we send love to Houston and the surrounding areas as well as Louisiana. Make sure to do your part in donating whatever you have to whether it be money, clothes or food(s). Follow Ambsoulâ„¢ for all of the latest updates and follow me on Twitter.

Source(s): CNN MONEY

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