Like most people, I don't like paying for insurance. But watching Hurricane Sandy wreak havoc with people's homes last week, I began to wonder if my home owner's insurance was sufficient. A recent car accident convinced me to re-evaluate my car insurance. And unexpected costly home repairs induced me to buy home warranty insurance I never had before. Altogether, my added premiums come to $110 a month.
I suspected that my various home remodel projects and an increase in property values likely increased the value of my home. Visiting AccuCoverage I quickly estimated my real estate value and saw that my current home owner's policy falls short.
I consulted with my insurance agent. He took into account the replacement cost of my home, based on my recent remodels and increase in property values. He also recommended adding insurance for my personal property, based on recent purchases. Increasing my coverage by $34,000, added a little under $20 to my monthly premium while insuring that in the event of damage, theft, or even total-loss, I'll be able to replace my assets without additional cost.
Even a car accident that wasn't my fault ended up costing me, at least in short-term. My deductible was $2,000, and my Personal Injury Insurance (PIP) was capped at $10,000. While I waited for my insurance company to settle the claim with the at-fault-party, I was forced to pay not only my deductible but 20% of my rental car costs, as well as some medical bills.
I decided to decrease my deductible to $500 and increase my PIP to $50,000, to ensure coverage even in the case of serious injury, hiking my monthly premium by $16.
Home Warranty Insurance
After the motor on my 2-year-old dishwasher burned, I was quoted $650 for the repair. To protect myself in future, I could buy extended warranty on all my appliances, which would add up to over $1,000.
Since my home was built in 1968, however, I knew that more than appliances were likely to break with time. To protect myself against leaks, plumbing and electrical issues, as well as appliance break-down, I decided to buy home repair coverage, at a premium of $75 a month, which ensures service 24/7 even on holidays with no deductible.
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