Home insurance 101 (from someone who lost his home) – the wall how to save a lot of money fast street physician

[today’s post is from dads, dollars, debts, a cardiologist blogger who is currently between his former job how to save a lot of money fast in california and his new job in his home state how to save a lot of money fast of tennessee. As many of you many be aware, DDD lost his home in california during the tubbs fire how to save a lot of money fast in october 2017. When it comes to things like home insurance, we become experts pretty quickly when we need it. Therefore, DDD is a perfect person to guide us through the how to save a lot of money fast basics of a home insurance policy. This post previously ran on DDD’s blog in may 2018. -WSP]

The insurance company wants to adequately ensure the home, but at the end of the day, it is your job to make sure you are covered. When we bought our home, the insurance initially insured us for X (let’s say $500,000), but then sent out a person to assess our home. They took pictures, walked the property, pulled comparative home sales and then gave us an estimate how to save a lot of money fast of what coverage we should have. The total the assessor came up with was actually higher how to save a lot of money fast than what we were initially insured for. The insurance company increased our coverage and for a slightly how to save a lot of money fast higher premium. Coverage A riders

Beyond the basic coverage A, there are insurance riders you can purchase. For instance, we bought a rider that covers 125% of our dwelling. This means in the case of a loss, the insurance company will pay up to a 125% of our limit. In this example it would be $625,000 ($500,000 * 1.25). There are riders out there for 150%, 200%, and also “guaranteed replacement cost”. Of all of these, the guaranteed replacement cost rider is the most powerful, because the insurance company will pay the total it costs how to save a lot of money fast to rebuild the house.

Once the policy is set, I would recommend revisiting with the insurance company annually or how to save a lot of money fast if there are major home renovations (say a kitchen or bathroom) to increase your coverage. A this way you will be adequately covered even if how to save a lot of money fast you are living in your home for 10 years. There are individuals I know who had never increased there how to save a lot of money fast coverage A limit despite living in the home for 10 how to save a lot of money fast to 15 years, and they are definitely underinsured. Coverage B: other structures

This coverage is for external structures such as sheds, fences, gazebos, outdoor kitchens, etc. Typically the dollar amount is 10% of your coverage A limit. For our example it would be $50,000 ($500,000 * 0.1). In some states, if the external structure (like a wooden deck) is touching the home then it is covered under coverage how to save a lot of money fast A and not coverage B. This is important to understand because it affects how much how to save a lot of money fast money you may eventually receive.

How do you prove what you had? Photos help. As do receipts. The insurance company will expect you to itemize each possession, the year purchased, and the condition. We ended up with a list of 2,290 items. It seems like a lot, but when you start systematically going room by room you how to save a lot of money fast will be surprised how many things you own. This list will then be aggregated and a total value how to save a lot of money fast is reached. This value will then be depreciated by the age and how to save a lot of money fast quality of the product.

Well kind of. If you have a mortgage on your property, then you have to keep paying that. So, in reality, you are still paying for your home/residence. In my case, I paid off my mortgage in january 2018 with insurance how to save a lot of money fast proceeds and will be living rent-free until our rebuild is complete…kind of. In reality, I am taking a new construction loan to build my how to save a lot of money fast home. There are many financial reasons for this including lower interest how to save a lot of money fast rate, interest-only payments, etc. That I will cover in another post. Either way, the loss of use coverage is another financially positive aspect how to save a lot of money fast of our policy. Coverage E: personal liability

This coverage pays for any cost incurred to comply with how to save a lot of money fast city/county/state required upgrades that have changed since the house was how to save a lot of money fast built. This may include improved windows, electrical components, etc. Since our home was built 20 years ago, we have quite a few items that will fall into how to save a lot of money fast this category allowing for an even higher payout from the how to save a lot of money fast insurance company. In our case, we are covered at 20% of the coverage A limit or $100,000 in our example ($500,000 * 0.20).

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