Whether you are purchasing insurance to cover a newly purchased home or reassessing and replacing the insurance coverage on an established North Carolina residence, an understanding of what is covered by your insurance policy can help you select your coverage and later claim your benefits if needed. North Carolina homeowners insurance policies are considered multi-peril policies that can be personalized to each homeowner’s needs. Basic policies cover damages that may occur to homes resulting from fire, vandalism, theft and other specified events. They also cover liability in the case of people getting injured on the homeowners’ properties under certain conditions.
Building and Liability Coverage
Dwelling coverage offers protection for your home and attached structures. Other structures may also be covered but are usually covered for a significantly lower amount than the primary residence unless you choose to pay a higher premium for fuller coverage. In general, personal property is covered under homeowners insurance – with a dollar limit and a restriction of only partial retribution on items that are particularly susceptible to damage. If your home becomes so damaged that conditions are unlivable, loss of use coverage can help you with living expenses incurred due to the damage. Finally, if homeowners or residents are held liable for people getting injured on their properties, homeowners insurance can cover the damages as deemed suitable under policy terms.
Supplemental Coverage Based on Your Risks and Assets
Some severe weather conditions and natural disasters are not included under basic homeowners insurance policies. Your home may be at risk for losses related to flooding, earthquakes, landslides, mudslides or other potentially damaging occurrences. A local independent agent can help you explore the risks associated with living in Burlington, Graham, Mebane, Durham, Chapel Hill and other North Carolina cities, so you can determine if purchasing supplemental coverage for your home is an appropriate choice for you.
The level of risk of theft occurring plus the property damage that results from homes being broken into can cause insurance rates to be high. Following these tips to prevent theft occurring at your Burlington, North Carolina, residence can protect your property and have the added benefit of lowering your insurance costs.
One way to reduce your risk of theft, which is commonly recognized by insurance providers as qualifying you for a reduced rate, is by installing a home alarm system. Consult your local independent agent to help you identify the insurance providers in your area that recognize alarms as items that significantly reduce your risk and therefore offer you a lower rate for having one in your home.
An alarm system can act as a theft deterrent, particularly when your system is public knowledge. An alarm can notify the authorities in case of a break-in, but it could also go far towards preventing thefts from happening in the first place. You may have noticed that some residences and businesses posts signs or display stickers that indicate that their building is protected by an alarm system. This can make their buildings appear much less welcoming to potential thieves. Ask your alarm company for signs or stickers and display them on your property to help prevent thieves from targeting your home in the first place.
By letting everyone know that you have a home alarm system protecting your Burlington, North Carolina, home, you create the appearance that your home is protected. Follow through by setting your alarm. And even if you don’t always set your alarm, keep up the appearance that you do. If you mention that you never set your alarm, word could get around and make robbing your home tempting to a would-be thief after all. Keep your home safe from theft by installing an alarm and creating the impression that your home is secure. Keeping valuable items out of sight and closing doors, windows and gates when not in use can also help keep your property safe.
Even though you may be able to save a couple of hundred dollars on your auto insurance policy by requesting a high deductible, in the long run, it may wind up costing you more money. In Burlington, Mebane, Graham and all other cities and towns throughout North Carolina, when you purchase comprehensive and collision coverage, you have a choice of how big or small a deductible to choose.
Even a very minor accident can cause thousands of dollars in repair costs. As your independent agent, we can help you decide what the proper size deductible should be on your North Carolina auto policy. As a general rule, you should keep your deductible low enough so that it will not be a financial burden if you need to file a claim.
A policy holder assumes financial responsibility for that portion of the entire claim thet falls below the level of their deductible. If your deductible is higher than the amount of the damage, you will have to pay the entire cost of the repair.
When you finance a new vehicle, the lender may require you to keep the amount of your deductible down to a reasonable level. Deductibles that are too high reduce the value of your collision and comprehensive portion of your auto policy. If you choose a $2,500 deductible because it does not make your car insurance policy go up by more than a few dollars, that usually indicates that there is little chance of ever being able to collect on that policy.
No matter if your car is worth $5,000 or $25,000, deductibles should be based on how much risk you want to assume for damage to your vehicle. For peace of mind, try to keep deductibles as low as possible. When an accident occurs, you will be glad you did.
If you have a mortgage on your house and want to make sure that your spouse will be able to stay in that house should you pass away before the mortgage has been paid off, it makes sense to purchase term insurance. When you first qualified for a loan to buy your home, you were approved for a certain amount of money based on your income and ability to repay the loan. If that income suddenly disappears, your family or heirs will be responsible for making the remaining mortgage payments.
If you do not want to place that burden on your loved ones, you can buy a mortgage protection term insurance policy for your Burlington, North Carolina home, and take care of that possibility. Another way to deal with such an unfortunate occurrence is to take out a level term life insurance policy that is at least as much as your outstanding mortgage.
When you buy a house, you will typically receive offers to purchase a policy to pay off your mortgage should you die during the life of the loan. Your mortgage holder is the beneficiary and the policy issued is a version of decreasing term life insurance. Your rate is calculated over the life of the home loan. You pay the same premium each month and it can be paid along with your principal, interest and other home insurance costs.
Alternatively, you might want to consider level term life insurance. You are not limited to the mortgage amount on your house and you can name anyone you would like as beneficiary. As an example, if you owe $100,000, you could take out a $500,000 standard term life policy which is more than enough to pay off the balance of your home loan and also leave your spouse with enough money to pay other expenses.
I know this may all sound a bit confusing, but it is really not that difficult to understand. As an independent agent, I can go over all of your options and answer all of your questions. Everyone has a different situation, and there is a policy that is best for each homeowner.