Tips For Retired Home Owners

When you have raised your children and they have left home, you’ll find that all those empty bedrooms are no longer an asset. You begin to think of moving to a smaller house. No matter the type of house you decide to move into, your insurance needs cannot remain the same. Here are a few tips on how to make the most of your move.If you decide to move into condominium, be sure to understand all that it entails. You get sole ownership of your unit and a percentage of the general area. Get an attorney to help you review the documents that contains the terms of reference. They would include the following:o Master deedo Rules and regulationo Bye lawso Master insurance policyo Financial statementsIt is very important that you read and understand the fine prints of the documents. That’s really why you need a lawyer. There’ll be important questions that the documents would answer.
Issues likeo How are trustees chosen?o How large is the operating budgeto Where does your sole ownership stop? Can u make additions to the house? and related matters.o What is covered in the master insurance policy? You need to review to be sure that there are no areas that are important to you that are not covered. If it be that there are needs that are not covered in the master insurance policy, you might need to take out loss assessment coverage to help make up for the exclusions.o What is the extent of the financial reserve?After you’ve read and understood the documents, you should show it to your insurance agent to help you determine whether you need extra coverage or not.Your experiences as a renter would be quite different from when you were a home owner. Now all you have to do is pay your and hopefully not cause damage to the house. When there is any problem in the house like plumbing, lighting, appliances etc) all you have to do is call the landlord who would come and take care of it. Does this mean that you no longer need insurance? No! Even as a renter, you still need home renters insurance. The master insurance policy would only take care of the physical structure. Your home renters insurance would take care of your property but your premiums would not be as high as when you were a home owner.Before you buy another insurance policy, check out different insurance sites and make comparison of their prices and services.

Home Owner’s Insurance Policy

This is basically the policy that protects your home. It is an agreement between you and an insurance company that you will be paying a certain amount (known as deductible) monthly, every six months, annually or any how you agree upon. Then in event of any loss or damage to your house they would pay you a predetermined sum. The insurance company would also pay for any injury that is incurred on your property for which your are responsible. This would cover specified period of time as agreed by both parties.The basic home owner’s policy does not cover natural disaster. You would therefore need to take out extra coverage to protect you in times of natural disaster. Most mortgagors would insist that you get a basic home owners insurance policy before they do business with you. But like I mentioned, it is not always the best to take out only the basic policy.Home owner’s insurance policy has different typed of coverage. They include:1. The basic home owner’s insurance policy covers the following: damage or destruction to the house and property arising from explosion, riots/civil unrest. Fire/lighting, volcano eruptions, vehicles, aircraft, wind/hail, self destruction (part of the house falling on itself), theft, smoke and vandalism.2. Plan 2 covers loss or damage to house and property arising from all the disasters listed in number one and also an addition of the following; a)water damage (dishwasher breaks, washing machine overflows), (b) electrical power surge (c) snow damage (like snow falling trees).3. The thirds plan covers number 1 and 2 and also specialty items. The only events on the exclusion lists are earthquakes, war and nuclear blasts and floods.4. Complete risk coverage: This covers any loss and damage to the house and property. Remember to always read and understand everything that is listed in the exclusion list5. Renters insurance policy: This covers only the property of the tenant in a house from the disasters listed in number 1 and 26. There are special policies for homes with historical value. The policy only covers the disasters listed in number 1 and is limited to repair or cash value of the items involved. The policy does not cover rebuilding costs because most of these buildings are often times higher than the current market value. (Especially the historic aspects of the house).7. Condominium Insurance: This is similar to the renters’ insurance policy.All these plans come with variation. It all depends on the insurance company and the need of the person buying the insurance policy.For you to get the best out of your home insurance policy, you need to make out time to shop.
Just as you took out time to look around for a house to buy, you also need to carefully check out quotes from different insurance sites and compare prices and services. This way, you’ll be able to get what is best for you and at an affordable price too!