Tips for Understanding Home Insurance

Every homeowner needs to have insurance. Not only is this a common requirement of mortgage lenders to protect their loaned funds, it is also important to have more than the basic home insurance required by lenders in order to protect the homeowner. For those purchasing a home for the first time, this guide will help them understand the different things to consider when getting home insurance. For those that already own a home, this guide will help identify the things that might have been overlooked and may need to have adjustments in order to have adequate home insurance coverage.

Basic vs. Extended Coverage

Basic home insurance coverage may be required by a lender. This type of coverage only covers certain kinds of events. Most homeowners benefit from having additional coverage for other things more than just the basics. Discuss the specifics of home insurance coverage with your agent at Lifetime Investments serving Mesa AZ and the surrounding areas to make sure your coverage is adequate for your needs.

Understanding Coverage Types

There is an important decision to be made between insuring a home for actual cash value and for replacement cost. Insurance for replacement cost is preferred because the insurance provides the amount needed at the current costs to rebuild a damaged home with materials of a similar quality. Insurance for cash value covers the amount needed to repair a home after deducting for depreciation. This amount can be far lower than the actual costs of rebuilding a damaged home.

Deductible

The deductible is the out-of-pocket expense before the insurance pays a claim. Higher deductibles usually reduce insurance premiums; however, the homeowner is taking the risk of having to pay the deductible amount if any repairs are needed.

Discuss your home insurance needs with your agent at Lifetime Investments in Mesa, AZ and have an annual insurance review to make sure you always have adequate coverage.

My Friend Was Driving When The Accident Happened. Will My Auto Insurance Cover The Claim?

Getting the right type and amount of auto insurance protects you from financial losses in case your car gets in an accident. Get the help of a reputable and committed insurance agency such as Lifetime Investments in Mesa, AZ to secure the most appropriate insurance policies. They may help you determine the right policies. Your friends and family may get into an accident while driving your car. You need to understand your auto insurance to determine whether or not it can cover the claim.

Who Is Covered?

Even though policies may be different depending on different insurance providers, anyone who lives in your house is typically covered when driving your car. You are also covered if you loan out your car to people who do not live with you. If, however, the dive your vehicle without your permission, your auto insurance does not cover your claim. The policy does not include people that are excluded from your policy. You may be sued for damages if you grant an unlicensed or intoxicated driver permission to drive your car.

Do not exclude drivers who are likely to use your car. The decision may cost you a lot of money in the future. If you do not trust someone, do not let them use your car even for short trips. Accidents may happen at any time.

Hire an Attorney

You may need to contact an attorney after your friend gets into an accident with your car. If they were unlicensed or impaired, you might be legally liable. The affected party may sue you for damages. An attorney may provide you with legal advice on how to handle the situation.

Contact Lifetime investments in Mesa, AZ to discuss your new quote for auto insurance.