Merging households is a great opportunity to do a home inventory -- which you'll be grateful to have if disaster does strike. And who knows? Your stuff may be worth more than you thought. (You'll also need this inventory when you're figuring out the details of your will.)
What Is Homeowners Insurance?
Now that you have valuable goods (from engagement and wedding rings to all those expensive presents), it's time to protect them. A standard homeowners policy generally covers four categories:
- The structure of your home: if it's damaged or destroyed by fire or most other natural disasters.
- Your belongings: if they're stolen or destroyed by fire or other insured disasters.
- Liability: if you, your family members, or pets cause damage to anyone else or anyone else's property.
- Additional living expenses: if you have to live away from home due to fire or other insured damage.
Do We Need It?
Not by law, but if you're getting a mortgage, your lender will most likely require it. And even if it's not required, do you really want to risk losing the investment you’ve made in your home? Didn't think so.
How Do We Get It?
First, take a home inventory. Go room to room taking photos of valuable items (be sure to write the relevant info on the back of each picture) or make a video (you can say all the important stuff into the camera).
- Note as much as you can of the following on each product: make, model, serial number, and other identifying information.
- Attach receipts, purchase contracts, or appraisals to the list.
- Count clothing items by category (pants, shoes, etc.), and note particularly valuable items.
- Once you're done, make several copies of your inventory and be sure to store some of them outside your house -- with a relative or in a safety deposit box.
How Do We Choose?
First ask family members, friends, and coworkers for recommendations. Then start doing your own research. You'll want to look for a company based on the following.
- Price: Shop around! There are deals to be had. Get quotes from at least three companies and compare them. Many state insurance departments also publish guides showing what various insurers charge.
- Stability: Be confident that your insurer is financially stable. Various research agencies track this.
- Service: Be sure you like and trust your agent.
How Can We Save?
After you've shopped around and compared quotes, there are several more ways to save.
- Get a higher deductible. Almost all insurance operates with a deductible -- which is the set amount that you have to pay before your insurance kicks in. The higher the deductible, the lower your rate.
- See if you can get a lower rate if you buy your homeowners and car insurance from the same company.
- Ask about discounts (for having home-security devices or for staying with the same company for a long time). Keep in mind that these differ from company to company as well as from state to state.
- Review your policy limits and the value of your possessions annually. Trust us, you'll be happy you did it. This is also a great chance to get rid of stuff you no longer need.
What Is Renters Insurance?
Renters insurance covers your possessions against losses from fire or smoke, lightning, vandalism, explosion, and water damage (
not including floods). It also covers your responsibility to other people who are injured at your home or elsewhere by you, a family member, or your pet. Party time!
Should We Get It?
Yes, it's a good idea -- and it's generally pretty inexpensive.
by The Nest Editors
2/11/08
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