Earning enough money to provide your family with food and clothing is not enough. You must always be prepared to deal with threats toward your family and home. This includes fires, thefts, earthquakes and anything else that may cause serious damages to your house. Therefore, to insure the wholeness of your family’s shelter you need to seriously think over purchasing a suitable home insurance policy. When to buy home insurance – is another question, the best answer to this question is – prior buying a house!
When to buy home insurance? Find out the most suitable time period for purchasing a reliable coverage.
However, the first thing to do is having your house inspected. You can do this before buying the house. In this case it will protect you from purchasing a dwelling that has got far serious problems. If the results of the inspection show there are certain minor problems you can require the homeowner to fix them, yet if the problems turn out to be serious ones it is advisable simply to walk away. As a rule, a house inspector pays special attention to the following parts of a house:
8. Electrical systems
Paying as little as between $250 and $500, you will not only have a thorough picture of how valuable your house it and whether it is worth buying, but also will be get an appraisal. Particularly this will be the time when to buy home insurance comes as the next step. You will need to demonstrate the appraisal to any home insurance company to get a suitable policy.
Home Insurance Coverage Types
When to buy home insurance becomes an important issue, it is worth first getting acquainted with different coverage and policy options. We can differentiate two types of homeowners insurance – a replacement-cost policy and a cash-value policy.
1. Replacement-Cost Policy
The first homeowners’ coverage type is much more profitable than the second one. It is designed to cover the current costs for replacing the insured house. For instance, when purchasing an old house, it may have features necessary to be replaced as the restoration cost may turn out to be even higher. When the house is covered with a replacement-cost policy, the company will cover the replacement costs. This home coverage is definitely more expensive than the cash-value policy (approximately 10% higher) yet there can be no doubt its coverage is broader.
2. Cash-Value Policy
The cash-value policy is designed for homeowners with smaller budgets. It insures both the house and the contents for the market value and will only reimburse for the depreciated value of the damaged possessions. Unfortunately, this compensation is hardly ever enough to replace or to repair the damaged part of your house. You will be have to complete the sum out of your pocket.
So, when to buy home insurance is your top priority, it is advisable to consider all the aspects including the deadbolts or security systems that may reduce the premiums. In all cases, remember that before moving to your new house, it is high time when to buy home insurance becomes essential.