Say you live in a beachfront home in Wilmington, a cabin in Asheville or ranch-style in the suburbs of Charlotte. These represent big differences in North Carolina lifestyles. But you're all bonded by one commonality: if you're paying to insure your home, you should pay as little as you can for the best policy you can find. You can do this with a little insurance education, and by comparison shopping for North Carolina house insurance rates. Let's look at education first.
North Carolina House Insurance Q & A
Since you'll be making decisions on insurance for your largest asset, you should at least give it some careful consideration. Here are some questions to get you started.
What does a home insurance policy consist of? It's usually divided into the following sections:
· Dwelling- pays to repair, rebuild or replace your home in the event of loss.
· Other Structures- pays to repair, rebuild, replace unattached structures like sheds, garages, etc.
· Personal Property- pays for repair or replacement to your personal belongings.
· Loss of Use- pays for additional living expenses in the event your home becomes unlivable as a result of a peril (tornado, fire, etc.).
· Personal Liability- pays in the event you are responsible for injury to others.
· Medical Payments to Others- pays for medical expenses for someone other than residents injured on your property.
How much North Carolina Home insurance coverage do I need for my home?
This is the replacement cost to rebuild your home at today's construction market prices. It's not the market value or tax appraised value. A good place to start is to know the square footage and your local market's construction cost per square foot.
What is the difference between "actual cash value" (ACV) and "replacement cost"?
ACV usually applies to personal property coverage and takes depreciation (age, wear, tear) into consideration when calculating for a loss. Replacement cost replace, repairs, or rebuilds using the same or similar materials without considering depreciation.
What is guaranteed replacement coverage?
This type of endorsement increases your dwelling coverage over the stated value up to a certain amount. For example, your home is damaged in fire. Your coverage is $100,000 but the replacement cost is $120,000. No problem, you have guaranteed coverage.
How much personal property coverage do I need?
Most policies start at 50% of your dwelling coverage. If you have special valuables like antiques, jewelry, firearms, etc. ask about the policy limits on these items. You may need to purchase a "rider" or "floater" that would increase the coverage.
How much will I need for liability coverage?
Think about your own situation. Do you have kids who have friends come over to play? Do you frequently have parties or guests at your home? If so, consider a higher policy amount to cover you in the event someone is injured.
Is flood insurance included in a standard policy?
No. Flood policies are always separate and start around $119 and are dependent on coverage and flood risk.
Lowering Your North Carolina House Insurance Rates
There are a number of rates to lower your North Carolina home insurance rates. First, ask about all available discounts. Here's a partial list of discounts:
· Home safety features like smoke detectors, fire extinguishers, dead-bolt locks, sprinkler systems, burglar/fire alarms.
· Multi-line (auto and home)
· New Home
· Senior (55+)
· Pre-paying vs. paying monthly, bi-monthly
· Payroll deducted payment
· Non-smokers
There could be others so be sure to ask your agent. Finally, the best way to lower your North Carolina home insurance rates is to comparison with a company like Local Insurance. Local Insurance will search the web for the policies that match your needs. And you'll get to compare from a handful of different agents in your area. It's free and takes just minutes.
(Source: localinsurance.com)