Our Insurance Expert Explains How Home Insurance Works

Our Insurance Expert Explains How Home Insurance Works

Home insurance protects you if your home or personal property is damaged from a covered peril such as storms, fire, vandalism, burglary, tornado or similar hazards. Knowing how home insurance works can help homeowners purchase the policy that best meets their needs for the best possible price.

Types of Coverage

According to Upside Insurance Greenville, a source for low South Carolina home insurance rates, homeowners’ insurance is divided into two parts: your home and your personal belongings. However, in addition to these two types, your policy can also include liability insurance. Here are the basic coverages found on a home insurance policy.

  • Dwelling – This covers your actual home.
  • Personal property – This covers everything inside your home.
  • Additional buildings – This covers other building on the property not attached to your dwelling.
  • Liability – This protects you from lawsuits by others injured on your property or pays their medical bills.
  • Additional living expenses – This pays your living expenses if you have to live elsewhere while your home is being repaired or replaced from a covered loss.

What about Deductibles?

Home insurance policies come with deductibles, which are the amount you must pay on a claim before the insurance pays. If you have a claim for $5,000 in damages and a $1,000 deductible on your policy, you pay the $1,000, and the insurance company pays the remaining $4,000. The lower your deductible, the higher your premiums will be.

It’s recommended that you deductible not be any higher than what you can pay at one time. If your home is badly damaged or destroyed, you’ll want to be able to have it repaired as soon as possible. Unlike health insurance, which requires you meet an annual deductible, home insurance deductibles must be met each time a claim is submitted. According to Insurance.com, there are three types of deductibles.

  • Dollar – Your deductible is based on a specific dollar amount.
  • Percentage – Your deductible is a percentage of your total coverage.
  • Split – Your deductible may be a combination of dollar amount and percentage.

Additional Coverages

In addition to the coverages listed above, there are also additional types of coverages you may wish to purchase. According to AmeriDri, these are typically called riders, and they cover items that aren’t usually covered under or basic policy or are covered for a limited amount. An avid gun collector, for instance, might want a rider on just his gun collection. You can also purchase an umbrella policy, which gives you additional coverage for a lower price.

How Much Home Insurance?

If there is a mortgage on the home, you’ll need to have at least that much coverage. Determining how much home insurance to buy can be a tough decision. You want the security of knowing you can comfortably replace your home and belongings in the case of damage. There are also two ways you can insure your belongings.

  • Actual cash value – This pays the replacement value of the damaged property minus depreciation.
  • Replacement cost – This pays what it costs to replace the items.

Some helpful hints on how much insurance to purchase and home insurance, in general, can be found here.

Finding the Right Company

With so many insurance companies around, it’s hard to know which company is best. Word of mouth is good advertising. Getting feedback from family and friends is always a good way. You can find out how satisfied or unsatisfied they are with their insurance companies or insurance agencies.

If you have complaints about a certain insurance company or wish to get information on them, the National Association of Insurance Commissioners can be extremely helpful. They can also provide with information on what the average insurance rates are in different states.

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Why Decluttering Saves You Time and Money When Moving

Why Decluttering Saves You Time and Money When Moving

Whether you’re moving for a new job or moving to better housing, relocating can be a time-consuming and challenging process. So many moving parts have to come together at just the right time to ensure you have a smooth and successful move. To relieve some of the stress that comes with moving, it’s important to find as many ways as possible to simplify the process. One great way to do this is to declutter your home before you begin the moving process, as it can save you major time and money as you move further along.

1. Pack Less

While it may seem easier to simply pack up all your belongings and then sort them out once you arrive at your new home, this can add more time and money to the process. One big reason for this is that if you declutter before you move, you’ll likely end up with much less that you have to pack. Having less to pack will mean you need less packing materials, fewer people to help you move, and a smaller truck to haul it all in. Since packing materials can be somewhat expensive, as can truck rental, it’s easy to see how packing less can save you money and time. If you’re moving long distance, decluttering will also save you money on the cost of hiring a moving company. Great Guys, a long distance moving specialist, says that interstate hauling rates are based upon the weight of you shipment. So, the less you pack, the more you save.

2. Pack More Efficiently

Once you’ve fully decluttered your current home, it makes it much easier and more efficient to pack. Besides having less to pack, as mentioned above, you will also have a better idea of where all your belongings are, which will allow you to categorize them more efficiently as you pack them, thus making the unpacking process go much more smoothly. As you pack, you’ll also have a better idea of what hasn’t yet been packed in each area, so you can find more efficient ways to pack the boxes, ensuring you get the most in each box.

3. Easier Out

One of the often-unforeseen problems that arise on moving day is all the items which are forgotten about until the last minute. Items like wall art, certain mementos, clothing, and certain essentials can quickly clog up walking paths as you try to move into and out of your current home. If you have decluttered, however, these last-minute items will be more likely to find a good place to be packed away for moving, which will clear up walkways, making it easier and faster to move boxes out of your house.

4. Finder’s Keepers

Another great thing about decluttering before you move is all that you’ll find along the way. Packing supplies are the types of things which get lost in the backs of closets, drawers, and under beds. As you declutter, you’re likely to discover some markers, rolls of tape, and probably a few boxes you didn’t even know you had. By grouping all these items, you’ll be able to take an accurate inventory of the supplies you have, thus lessening the number of moving supplies you will need to buy.

5. Relaxation

Whether you enjoy decluttering or it stresses you out, when you reach the end of the process, you’ll be left with a nice, clean, organized home. This will provide a great foundation of stability before everything is thrown into chaos as you begin the moving process. Just remember the wonderful tranquility you achieved through decluttering and remember that by doing it now, you’ll be able to achieve that same tranquility in your new home, as well.

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If you are struggling with credit card debt, you are far from alone. Consumer credit card debt is on the rise with the average household owing more than $8,300, according to WalletHub. With an average APR of 16.15%, you could be stuck paying this debt for more than 15 years and pay over $6,300 in […]

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What to Know When Planning To Move for a Job Relocation

What to Know When Planning To Move for a Job Relocation

A new job in a new city can be very exciting, but it can also be an overwhelming process. If you don’t play your cards right, you could end up with a long list of headaches and regrets during your move. Relocation requires careful planning and strategy, so consider these helpful tips when planning your next long distance move:


1. Manage Your Receipts

The moving process can be very expensive, but there are ways to offset the moving costs if you stay organized. As a  local Austin moving company suggests, many employers will offer to help with relocation fees like a moving truck, food, and gas for your journey. Additionally, the Internal Revenue Service offers a tax credit for citizens who have out-of-pocket expenses as a result of job relocation. You’ll need to check on your eligibility for this credit, but tracking your expenses can be worth the time and may save you some personal costs in the long run.

2. Build Your Network

Of course, you’ll want to make connections in your new city especially if your new line of work is business-oriented. Social media tools like LinkedIn and Facebook are great resources for identifying connections in your new area. You should also research community-based events and activities that suit your interests. If you love sports, why not join a recreational softball or kickball league? If you enjoy giving back to the community, research a few non-profits where you can commit some of your time. These opportunities will allow you to meet new people both socially and professionally and will make the transition feel more like home.

3. Research the Essentials

Relocating comes with the headache of identifying essential spots like your dentist, doctor, gym, and local grocers. You’ll want to scope out the area for the most convenient and highly recommended locations. You should also do a trial run of finding your new employer in advance of your first day on the job. You should be familiar with how to get there and the time it takes to commute. Additionally, if you’re planning to buy or rent a home, you’ll want to uncover safety and home value data in your respective neighborhood.


4. Set a New Budget

One thing that’s often overlooked when it comes to relocation is the new cost of living standards. You’ll want to do your research about the cost of living in the area, and understand how your new home may impact your bottom line. There are plenty of online resources that will help you in your research and guide you in establishing a new budget.

These items are just a few of the many things to consider as you embark on your new adventure. With careful planning and attention to detail, you’ll be well on your way to enjoying a new home worry-free!

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What to Look for When Shopping for a Home Mortgage Lender

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Purchasing a new home is a huge life decision. Your home is where you’ll make memories, raise your family, and plant your roots. It’s also one of the biggest investments you’ll ever make, but purchasing a home won’t happen overnight. The process takes dedicated time and research. Most new homebuyers require a bank loan and […]

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