For most people, their home is their biggest investment. Usually, it is also their greatest financial asset. Therefore, it stands to reason that when you are choosing New Mexico home insurance, it is important to know not only what type of coverage you need but also the amount of coverage that will adequately protect you and your investment.
When people are considering New Mexico home insurance, most probably think of natural occurrences which can happen unexpectedly- thunderstorms with damaging hail and wind, tornadoes and earthquakes. It is important to remember that many times, unless specified in your New Mexico home insurance policy, coverage for floods and earthquakes are considered “extra”. This means that you have to add them to normal policy coverage (and at additional cost).
Also, people want damage protection from fire, smoke, and other related problems. But there are other circumstances which can warrant having a sound New Mexico home insurance policy. It’s important to have protection from possible theft and also from personal liability claims (which can arise from someone injuring themselves while on your property).
There are also some simple things you can do to reduce your risk of loss and minimize the chance of damages. These include installing and maintaining smoke detectors throughout your home, installing a security system, and placing fire extinguishers in high-risk areas.
Remember that the better home insurance coverage you have in effect, the less financial obligation you will have in the event of a claim. Additionally, if you have a mortgage, you may want to check with your lender as many mortgage companies have certain coverage requirements that they expect you to include in your policy.
Once you have looked over the information outlined in this article, you will be able to put together a policy which is right for your needs and resources. You can rely on insuranceUSA.com to help guide you through these facts and offer you straight-forward, affordable New Mexico home insurance quotes.
Choosing Your New Mexico Home Insurance Policy
There are several things to keep in mind when you are choosing your New Mexico home insurance policy. First of all, you need to decide if you want a monocline New Mexico home insurance policy or a package New Mexico home insurance policy. The monoline policy gives you just one type of New Mexico home insurance coverage. For instance, monoline New Mexico home insurance often only covers liability. A package New Mexico home insurance policy offers several different kinds of coverage, such as property insurance as well as liability. In general, it is more economical to buy a package New Mexico home insurance policy.
There are 7 different types of New Mexico home insurance policies. It is important to known which one best fits you needs and requirements for a solid New Mexico home insurance policy. The seven types are New Mexico home insurance policies are:
Homeowner’s 1 (HO-1) policy: This type of New Mexico home insurance policy is actually offered by very few companies because it covers such limited options. Covered by an HO1New Mexico home insurance policy are fire, lightning, smoke damage, windstorm and hail, burglary and theft, explosions, glass breakage, vehicle or aircraft damage, riot and civil commotion, vandalism and malicious mischief, bodily injury, damage to the property of others, civil judgments, medical payments, personal property away and at home, and expenses if forced to live away from home for a temporary period of time.
Homeowner’s 2 (HO-2) policy: This covers all the items in an HO1 policy, plus falling objects, damage from the weight of ice or snow, water from plumbing problems, freezing of the pipes and plumbing, electrical damage to appliances, and rupture of water heaters and heating systems.
Homeowner’s 3 (HO-3) policy: This is also called a Special Form Policy and it is becoming the most used New Mexico home insurance policy. This covers your home for all physical loss, except for those losses that are specifically not covered. These can include earthquake, flood and war.
Tenant/Cooperative Owner’s (HO-4) policy: This New Mexico home insurance policy insures against damage to the contents of an apartment and against personal liability from damage suffered in the insured person’s unit.
Homeowner’s 5 (HO-5) policy: This New Mexico home insurance policy covers everything in the HO-3 policy, plus the physical loss of personal possessions, except for those specifically mentioned.
Condominium Unit Owner (HO-6) policy: This New Mexico home insurance policy is designed for condominium units, and includes all coverage as HO-4.
Homeowner’s 8 (HO-8) policy: This New Mexico home insurance policy covers all the same items as HO-1, but gives cash coverage instead of replacement cost coverage. This is generally used when the replacement value of property exceeds the market value.
InsuranceUSA.com can provide you with all of the information you need to make the right choice for the New Mexico home insurance policy that is right for you!
How Much New Mexico Home Insurance Do you Need?
When considering New Mexico home insurance, utilize InsuranceUSA.com to do research and request a free quote. If you have any questions about your policy, make sure you ask your insurer.
When buying New Mexico home insurance, most insurance companies will insist on a home inspection to determine the home’s value. Also, make sure you compile an inventory listing your most valuable possessions such as furniture and appliances. Take photographs, hang onto your receipts and update your policy at least once-a-year to account for any additions or changes to your home.
It is important to have enough New Mexico home insurance to cover your home’s value in case of total loss or damage but not so much that you can’t afford the premiums.
Non-Renewals and Policy Cancellations
An insurance company cannot simply cancel an New Mexico home insurance policy and it must remain in effect for the “term period” provided nothing warrants its legal cancellation. Possible reasons for an insurance company discontinuing coverage during the term period include:
- Non-payment of premiums
- Felony conviction
- Modifying a residence so as to make it uninsurable
- Creating unsafe conditions at the property
- Committing fraud or otherwise submitting false claims
After the policy term period is over, an insurance company can cancel or not renew a policy for any legal reason. In such an event, adequate written notice must be provided prior to the cancellation or non-renewal.
Purchasing New Mexico Home Insurance
The first thing to do when you decide to buy New Mexico home insurance is make sure that you are working with a company that is appropriately licensed. To find out if they are licensed to sell New Mexico home insurance just ask for a copy of their New Mexico license number.
Your next step will be to answer a list of questions that will give the insurer enough information to make sure that you are sold the appropriate New Mexico home insurance. It is vital that you answer the questions carefully and don’t leave anything out.
When you are looking around for an insurer make sure that you find out about the level of service that they provide. This is equally as important as the cost. The lowest price isn’t always good value.
Purchasing New Mexico Home Insurance via the Internet
Shopping around for good quality New Mexico home insurance is very important. You should get a minimum of three quotes. To gather the quotes you can use either the phone or the internet. The internet is a fast and easy way to do your home insurance research and to find the best deals without having to leave your house. The internet has become a key part of the home insurance sector. Insurance agents provide quotes over a growing number of comparison websites. All you need to do is fill in the online questionnaires and a quote will be returned to you at the click of a button. InsuranceUSA.com is a great place to start your search.
Remember that price is not the only thing to keep in mind when purchasing New Mexico home insurance. Companies that answer questions and deal with claims quickly and efficiently will be your best choice when buying New Mexico home insurance.
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