When you are applying for a mortgage to buy your home your lender is going to require to secure your home insurance before the closing. This part of the home buying process can be overlooked. However, one can argue that the insurance to protect your most valuable asset may be the essential piece. Here are 3 home insurance facts to get the most out of your policy while keeping the premium down as well.
Make sure you know what type of policy you have. There 3 types of coverage on home insurance policies are actual cash value, replacement cost, and extended replacement cost. Actual cash value is a policy that will replace property and possessions up to the policy limit minus depreciation. This means if your home is destroyed 10 years after your policy starts, chances are you will not have enough money distributed to rebuild it identical to the home you had before. Replacement cost is a policy that will repair your property and possessions up to the policy limit without a deduction from the depreciation. This is more expensive but is essential to at least have this much coverage. Extended replacement cost is a policy with the highest protection. The details include a policy that will replace your home up to the policy limits and further due to inflation. This kind of policy will give you the peace of mind to know the home being rebuilt will be identical to the one you had before. At Thompson Insurance, all of our Desoto county home insurance, Tate County home insurance, and Lafayette County home insurance include this kind of coverage. We put extended replacement cost on all of home insurance policies, including those for Southaven home insurance, Olive Branch home insurance, and Hernando home insurance.
Some belongings may not be fully covered. Now, because we always do extended replacement cost policies, you will have replacement cost on your personal property as well. However, if you have items like furs, jewelry, and firearms they will only be covered up to a couple thousand dollars per item. Therefore, if you have a piece of jewelry worth $10,000 dollars you will come up short on your claim check. This is why it is important to get an inexpensive rider for items such as the $10,000 piece of jewelry. You can do that by clicking this link to get a quote.
You should not always make a claim. First of all, we recommend you talk to one of our highly trained staff members if you are thinking about making a home insurance claim. Insurance is one of the only products you buy that you hope you will never have to use. Filing a claim can make your home insurance rate increase up to 3 years no matter what company you are with. We see premiums increase up to %10 percent and stay that way for years after customers have filed home insurance claims. It is also important to know your deductible. All things considered more times than not if you do the math, it will not be in your favor to file a claim for something that will cost you a few thousand dollars.
How to Start Your Quote
Every person is unique and therefore requires a carefully crafted policy. Good news, our Agency offers custom tailored insurance proposals to ensure you get covered properly but don’t pay more than you have to.
If you’d like us to review your current policy and provide you with no obligation quotes, call our office, or see our Quotes page to get the process started. Either way, we make the process super simple!
We serve the North Mississippi area, including towns like Olive Branch and Southaven, including Desoto County, Tate County, and Lafayette County.
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