Using Insurance As a Part of Your Security Strategy

protect your house

We’re all about home security here, and we try to give the best advice possible when it comes to coming up with strategies to protect your family and your home. Sometimes, it’s not just about the actual home security alarms and devices, but also about having something in place for when things do go wrong — and believe me, eventually things go wrong. That’s just life.

So, when the sanctity of your home gets violated, what’s that like?

Sometimes, it’s purely accidental. In some parts of the country, you’ve got wildfires (which contrary to common belief, is generally caused by humans). Other times, you’ve got people veer off the road and drive into your house or there are trees that fall due to other human interaction, just to name a few.

In some other cases, like what we generally discuss in home security, there are people out there that are simply looking to do no good and break into homes. They may take a few things, or they may simply ransack the entire place, causing some serious damage.

In all of these cases, while you may have the proper security set up and authorities arrive at the scene, the damage is already done.

This is why having insurance on your home itself and its interior is important.

One belief that must of us have is that insurance is largely a scam. This actually can be the case depending on what policies you buy, but for most reputable companies that have been around for a long time, they are actually there to assist when things do go south (but also make profit when things are good). It’s up to you to really look at the fine print and understand what they will and won’t cover. In general, however, you’ll want to understand the importance of insurance, and there are two things we recommend.

Homeowners insurance

Homeowners insurance covers mostly the structure of your home, although you can get additional coverage to help with loss of interior properties and other things. This is important because any number of things can happen to your home to the point where it’s either partially damaged or entirely destroyed and you’re left with a mortgage with no place to live. Homeowners insurance is a protection against that type of scenario, and, in fact, in new construction or most home loans, you can’t be without this type of insurance.

One thing to be aware of is that homeowners insurance covers the value of the house itself. This means that if you have a $150,000 house on top of a $200,000 piece of land, your insurance will pay out only the value of the property, not both the property and the land. It’s there to replace the structure itself, not anything outside of that. This is important because you may get your insurance from a company and attempt to cover all of your property value, but they’re going to come back with a rejection because they only cover the structure.

Home warranty

Now this one is a bit more tough to acquire, simply because there are a lot of home warranty companies out there that, well, suck. The idea is that you’re placing warranty on appliances within your home and you pay a monthly fee so that they will cover repairs or replacements in case anything ever goes down. A classic example would be that your a/c compressor blows out and you need to get a replacement. The home warranty will cover this — you have to pay for the repairman to come out but they will cover all the parts and labor to get it working again.

Home warranty is generally cheap. For a 2 bedroom condo, you can get pretty much all your appliances – washer, dryer, dishwasher, water heater, a/c, range, etc – covered for as little as $65/mo. It could be less than that depending on the company, but it’s worth nothing that the cheaper you get, the more stingy they’ll be on what they cover and pay out on. It’s important to check out the reviews on the companies you’re looking at to make sure that they have a track record of actually following through with what they promise they will cover.

Check this video out to get some more details on choosing the right home warranty:

 

With that, take a look at what options you have for home insurance and home warranty. It’s worth at least knowing your options so you can make the best decisions for your home and family. Remember that insurance is largely there for those catastrophic situations. While you may feel that paying a monthly fee for something that you may not ever see a return on sounds horrible, being left with nothing in the chance that a catastrophe actually occurs is even worse. One of our partners is Rockland Insurance Agency, based in Texas, so you may want to take a look at some of the useful content they have there related to different types of insurance, including home insurance.

Remember to check back for more information on latest home security tips and strategies (http://www.homesecuritysystemsadvice.com).