Usually, when first-time home buyers purchase a home from Hartz Homes, it’s their first experience in obtaining homeowner’s insurance. So, we have decided to provide a guide to eliminate any mystery about this important undertaking. Following are the top 9 things you probably want to know about homeowner’s insurance. After all, if you just bought a beautiful home from Hartz Homes, you’ll want to protect it correctly.
- What homeowner’s insurance covers
A typical policy will pay for damage to your property and your possessions in the event of certain storms, fire, theft or vandalism. Like renter’s insurance, it also provides liability coverage if someone gets hurt on your property and decides to sue. Homeowner’s insurance also covers shelter costs, so you don’t have to face crazy hotel bills if you’re temporarily displaced from your house.
Homeowner’s insurance can protect belongings outside the home, too. If something is stolen from your car, auto insurance won’t cover it—but your homeowners policy likely will.
- What’s not covered
A standard policy has exclusions, including earth movements (landslides, earthquakes, sinkholes), power failure, war, nuclear hazard, government action, faulty zoning, bad repair or workmanship, defective maintenance and flooding. Windstorms are typically covered, including tornadoes. (Although insurance companies exclude tornadoes or hurricanes in some high-risk areas.)
Water damage is tricky. As a rule of thumb, water from above (rainwater or a burst pipe in an upstairs apartment) is usually covered, but water from below (backed-up sewers or ground flooding) generally isn’t.
- You should shop around
Before committing to a policy, take the time to research an agent whom you trust—preferably one with good reviews online or via a personal recommendation. If things go wrong, and you have to file a claim, you’ll want to work with a company and agent that are easy to deal with.
Don’t just shop for a good price on a policy. Make sure you also select a good agent.
- Preventive measures can reduce premiums
It may sound like common sense to have working smoke detectors, but did you know that it might also help you land a lower insurance quote? The same goes for a burglar alarm. Often, you can reduce your premium by about 5% if you install something as a simple as a deadbolt, and up to 15-20% for a burglar alarm system.
Insurance companies price your premium based on how much risk they foresee, so you can reduce the premium by reducing your liability risk, thanks to some smart preventive measures.
- Replacement coverage versus market value
There are two key distinctions that every homeowner should know: “replacement cost” versus “market value.” Replacement cost covers repairing or replacing your entire home. Market value is how much someone would pay to buy your home and accompanying land in its current condition.
When you’re considering the type of coverage to take out, a policy that’s based on market value is typically less expensive but, you won’t recoup as much in the event of a serious disaster.
For those who have a good emergency fund in place, you might consider getting a policy that covers more in terms of replacing or rebuilding your property, but with a higher deductible.
- Why You Shouldn’t Wait to File a Claim
When buying a policy, make sure to ask about time limits to report a claim, and then abide by them! If you wait too long, you may not be eligible for benefits—especially if waiting has made the problem worse.
- You should keep good records
Homeowners must document everything that occurs during a loss, so make a detailed record of your belongings. In addition to saving receipts, contracts and appraisals, you may wish to shoot a video of the contents in each room of your house. And be sure to stow your records in a secure place. You may wish to consider keeping digital copies online using a program like Dropbox.
- How jewelry is covered
When signing up for homeowner’s insurance, note the limits on jewelry. Many people don’t realize that things like wedding rings aren’t usually covered by the basic limits in their policies. You can get an appraisal at your jeweler, and then consider buying a supplemental policy to cover it.
- How to save by bundling
One way to save money is to bundle your homeowner’s insurance with other policies that you already own. For example, it can be beneficial to have your car and homeowner’s policies with the same company because you’ll usually get a discount
Please check out these new home communities from Hartz Homes:
Armitage Pointe of Addison, Illinois (Chicago area new home construction)
Bella Vista Townhomes of Bolingbrook, Illinois (Chicago area new home construction)
Lago Vista of Lockport, Illinois (Chicago area new home construction)
Leigh Creek of New Lenox, Illinois (Chicago area new home construction)
Marquis Pointe of Montgomery, Illinois (Chicago area new home construction)
Marywood Meadows of Montgomery, Illinois (Chicago area new home construction)
Nantucket Lakes of New Lenox, Illinois (Chicago area new home construction)
Oliviabrook of Oakbrook Terrace, Illinois (Chicago area new home construction)
Park West of Manteno, Illinois (Chicago area new home construction)
Playa Vista of Plainfield, Illinois (Chicago area new home construction)
Shannon Estates of New Lenox, Illinois (Chicago area new home construction)
Sky Harbor of New Lenox, Illinois (Chicago area new home construction)
Whisper Creek of Mokena, Illinois (Chicago area new home construction)
Hartz Homes has new home communities in:
Addison, Illinois (Chicago area new home construction)
Aurora, Illinois (Chicago area new home construction)
Bolingbrook, Illinois (Chicago area new home construction)
Lockport, Illinois (Chicago area new home construction)
New Lenox (Chicago area new home construction)
Manteno, Illinois (Chicago area new home construction)
Mokena, Illinois (Chicago area new home construction)
Montgomery, Illinois (Chicago area new home construction)
Plainfield, Illinois (Chicago area new home construction)
Oakbrook Terrace (Chicago area new home construction)