Homeowner’s insurance is one of those boring things you deal with in life-you would rather be grilling out, or taking a long hot bath, than thinking about insurance.

But, if something happens to your home, such as a fire, severe leak, or burglary- then you will be extremely glad you have it.  And if you rent, keep reading for advice for you too!

What exactly is homeowner’s insurance-it is an insurance policy that will help you re-build, repair, or replace your home, or the items in it, if something happens to it.

What are a few precautions to take with purchasing homeowner’s insurance:

• Choose a high deductible, and make sure you have a super-duper emergency fund!
• Make sure you get replacement value on home and contents, otherwise, the depreciation (loss of value over time) of your stuff, will result in your getting insufficient money to replace what you lost.
• Make sure you comparison shop, and try to bundle it with other insurance for additional savings.
• Remember, homeowners insurance, does not cover damage from flooding, and frequently wind damage.  So make sure you find out those details, and make other insurance arrangements to cover those areas.
• Use a video camera to video your home and contents-make sure you itemize things that you think are valuable, like guns, jewelry or art.  And put that video somewhere besides your home- in a bank safe-deposit box, or with a relative-it will not help, if the video gets burned up in the fire…..

Insurance companies have been much more aggressive at raising rates, and canceling policies on folks who have claims or losses.  So keep your emergency fund intact, and use that instead of filing an insurance claim for small losses.  Save your insurance for the “heart attack, not your cold or flu!”  It may not be fair, but that is the way it is……

And just like in our discussion on life insurance, make sure the companies you choose are quality companies, who will be there when you need them.

Your Home is Your Castle! Photo by kansas explorer

Now what about people who rent-they aren’t homeowners.  Well, they may not be homeowners, but they do have stuff-so make sure you carry what is called “contents” coverage.  This covers your furniture, and other household goods.  Again, if you have anything valuable, that may be difficult to replace have it itemized on your policy-the company may require an appraisal, to make sure the value you quote is accurate.

If you have any questions or comments, please let us know.  If you have had any experiences with your homeowner’s insurance-give us a shout.

And remember, you can join us on our journey to helping others become “Millionaire Nurses”, by joining our team.  We will send you the E-book, “Emergency Money Resuscitation” as well as an emailed “mini-course” on money management.   These two items are full of money saving tips-that will help you save hundreds if not thousands.  I will also send you our newsletter,”The Millionaire Nurse Money Letter”