5 Tips on Buying HomeOwners Insurance in NJ
(Point Pleasant NJ Feb 28 2017)
As the winter crawls to a end and the Spring Home Shoping Season heats up, here are some thoughts
about getting the right Home Insurance for your Present Home or that New Castle you have set your sites on…It’s been said that Home is where the heart is,
but it’s truely more than that . Your home is a place of Life, the 4 walls of memories, the place you spend a good 40% of your life, the place where you kids will grow up, the home that your family visits, and the place where memories are made.
So shouldn’t Insuring your home be
more than just a piece of paper to apease your Mortgage company?
Unfortuantely most people view their home insurance as a necessary evil, a required bill that only needs to be paid, till the day the mortgage is gone.
And sometimes when the mortgage is gone, people cancel their Insurance and think they never will need it. We’ve seen this happen several times unfortunately.
Last year a clients of our office for over 15 years dropped their coverage. The mortgage was paid, and the husband despite earning a good salary hated paying the Insurance bill
and no matter the advice I gave him about his financial matters, he was adamant about canceling the Insurance and keeping the $200 per month that it cost to insure his $800,000 home.
So despite Our advice that they keep their coverage– It was canceled—then a few months later disaster struck. Now read on, this is really incredible and true.
Seems Our client’s granddaughter was getting married, so the home was offered for the bridal shower. I do recall awhile back Our client beaming with pride describing
the details of the wedding for their first grand daughter. They thought about using their beautiful 3700 sq. foot Colonial Monmouth County Home as a setting. For what I could gather, the event occurred on a spring day last May 2016 about 5 months after the mortgage and the policy were terminated…And here’s where it all went wrong, one of the guest fell on the side walk and broke her arm, that guest happened to be the Groom’s grandmother . The woman was taken to the emergency room as the celebration ended and the wedding went off a few weeks later. But while the bride and groom were off on their honeymoon, Our former clients got hit with a lawsuit. The shocking part was the size and scope of the lawsuit asking a large sum for pain, negligence and suffering based on a claim that the sidewalk was broken and the owner failed to fix it.
This is a perfect example of how coverage is dropped and then a disaster strikes. It doesn’t have to be a fire that burns your home to the ground for it to be a catastrophy —it can be some many other things, a leaking broken dish washer, a kitchen smoke fire, tree falling on your house, or some one falling on your sidewalk. The Point is insurance protects your from the unexpected, so making sure your coverage is right should be your first concern, then the cost to secure that protection, second.
In this case we got a phone call looking for their coverage and Our former clients were now questioning why we allowed them to cancel their policy then proceeded to blame others for the lack of coverage. We explained that they were the ones who requested the policy be canceled, and of course the client couldn’t recall why we allowed the insurance to stop. Then the call from their attorney and subsequent letter informing us that they never wanted coverge canceled and it was our fault… And that we were to blame. The threatening letters from the newly appointed attorney were amusing as the threat of legal action was whiped up proclaiming it was my fault that he didn’t pay his bill. After the call from the attorney we researched the file and found two letter, one hand written from the customer and the subsequent signed form letter that specifically requested the termination of the policy. Once the attorney recieved the letters, I never heard from either party again. I don’t know what happend in the case, but I recently drove past the home shocked to see BIG FOR SALE on the front yard, even though I remember the owners telling me how much they loved the house and never would sell it.
If anything can be learned from this unfortunate disaster, save your paperwork. The real lesson of this Life Story, Plan ahead–People dont’ plan to fail, they fail to plan. Your insurance policy is your plan, your protection, your piece of mind.
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So here’s 5 Tips to getting the Best Insurance policy at the right Price.
#1 Don’t guess about the replacement value of your home, be certain, the market price oor the taxable assessment is not the right value. Your home coverage is based on the square footage and quality of construction, contact a builder to get a general idea. Your Trusted Choice Agent can get you a close idea of the replacement cost so call him first, but eventually it comes down to an iIdependent Judge, who is a outside inspector to determing the replacement cost, and that person is usually hired by the Insurance Company on your behalf.
#2 Understand the factors that make up your risk.
Your cost is based on several factors beide the squarte footage, your neighborhood, quality of workmanship, local crime rate, how closed to fire house, Claims history and your specific geographic location, and distance to the coast. Many insurance companies can deny home insurance near the coast, or have very high deductibles, that may appear to make a policy look cheap but a 5% wind or Hurricane deductible can coast you a lot in the event of a loss, so speak with your Trusted Choice Agent to get the whole story.
#3 Check your coverage, Are you insurred against loss from other things like water backup, ordiance of law, replacement cost, burgalry.
What are your deductibles for Wind, Hail, Hurricane, how old is your roof, when were utilities upgraded? High deductible can make a policy look cheap, but cost you more inthe end, and check and see if you are covered for mold and bacteria, another costly mistake if missing
#4 Check for all possible deductibles, like age, Your Education, Your credit history, Paperless correspondence, Fireplace, safe home credit, etc.
#5 And lastly, but certainly not the least, seek out the guidance from an experienced Trusted Choice Agent an independent advisor who isn’t captive to any one company but one who can shop your policy and get you the best deal around.
So next time for Personalized NJ Home Insurance Quotes, call the owners of I & E Insurance Agency 732-295-5584 , Allow us to Help you.