Home Insurance 101

Know your Home Insurance policy

Every homeowner who has a mortgage (and there’s precious few of us who don’t!) is required to carry homeowners insurance.  Most of us know that this policy will pay us back if the house burns down.  We know that it covers the contents inside.  Most of us even know that Grandma’s diamond ring and the expensive artwork we received as a wedding gift may need to be scheduled for their specific values on the policy.

But the home insurance policy is much more than that.  And being an educated consumer regarding the coverage that you are required to have is critical.

Why is this important?

Two weeks ago my dryer started making a noise that loudly and clearly indicated it was on its last legs.  There’s nothing subtle about the way it chose to depart from this world.  It was either angry or in pain or both, and it was willing to let the entire household know about this in no uncertain terms.

And so the research project began.  It used to be simple to go to the local Sears appliance store and pick out a new dryer.  This is no longer the case.  Should I replace the washer too so that I have a matching set?  Should I get the same model that I had before?  High efficiency? Super capacity? Gas dryer? Electric dryer?  With or without steam? Haul-away of the dead dryer? Cubic feet?  Color?  Should I paint the laundry room while I’m moving everything around anyway?  There are so many options and things to consider, even with the simple purchase of a dryer.

Home insurance is even more complicated.  Listening to TV commercials will only get you so far.  Just like with appliances.  Or cars.  Or any other major purchase.  And I will spend more this year on my home insurance than I will on my dryer.  Guaranteed.  So it’s even more important to do the homework, learn the basics, and understand what you’re buying.

Insurance companies know that consumers want more information.  They want to understand.  Many companies now provide educational resources that are quick and easy to understand.  Your time is valuable – and so is your education.

Central Insurance explains the importance of home insurance limits in their YouTube video called Home Insurance 101.


Home Insurance, Fishkill home insurance, homeowners insurance

Homeowners 101- Limits

Be an educated consumer regarding home insurance.  Know what it is, what it does and what it means for you.

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