Home Insurance is a Package Policy
The Homeowners insurance is concluded in flat rate insurance. A Package Policy means that it covers damage to your property, as well as your legal or legal responsibility for any injury or damage to property that you or a member of your household causes to others. The owner’s insurance also covers damages caused by pets.
Homeowners insurance covers most disasters, but there are some exceptions, such as floods, earthquakes, and poor maintenance (also called attrition). If you want protection against floods or earthquakes, you must buy separate insurance policies. However, maintenance problems are the responsibility of the owner. Keeping up with the maintenance of your home will reduce the likelihood of future losses. A good example of this is the replacement of a roof by wear.
In general, it is very important to have home insurance coverage that meets your specific needs. You never know when a loss will occur and you will need the money to repair the damage. Take Hurricane Katrina as an example. There were many people who did not have homes because they did not have flood insurance. Therefore, it is very important that you obtain the correct coverage.
Keep in mind that the guidelines for common homeowners do not cover flooding. Discuss all possible risks with your agent, broker or insurance company.
The Replacement Cost
Replacement costs are available for the structure of your home. In this way, you can repair the house so that it remains before the damage. The cash value hedge is the replacement value minus the depreciation. The older your property is, the less you will receive from the insurance company for the owners.
Insurance coverage is not only for the owners but also for the people who rent apartments or houses. If you rent a house and have renters insurance, you are insured for losses. The coverage for a tenant is relatively cheap and covers your property, your liability and the loss of use of the house due to covered damage.
The owner’s insurance covers four different types of coverage.
1. The owner’s insurance company offers insurance coverage for the structure of your home. This means that they repair or rebuild your home in the event of a covered loss.
2. The insurance coverage for your personal property that you have in your home is also covered by the owner’s insurance company. This means that in an insured event covered by your insurance policy, your personal belongings can be replaced. Note: it is a good idea to pay for your content. In this way, your items will not depreciate if they are lost. With replacement costs, you can replace your property with items of the same type and quality.
3. Liability coverage covers you in the case of a claim for bodily injury or property damage inflicted on another member of your family.
4. Additional living expenses if temporarily you can not live in your home due to an insured disaster.
Homeowners insurance may be more and restrictions apply to certain types of property. These options should be discussed with a representative when requesting coverage.
Homeowners Insurance Quotes
What do you like most about your home: the bright, sunlit kitchen, the gleaming hardwood floors or the comfortable rooms?
Or is it the fact that your home is likely to make up the majority of your total assets?
In any case, you must protect what you have using the homeowners insurance quotes.
Although a few years ago there were reports of higher prices and limited availability for home insurance, the market has reopened, according to J. Robert Hunter, director of insurance for the Consumers Association of America. Premiums are expected to increase only around this year’s inflation rate.
“The market remains a competitive market for homeowners to be selective in buying home insurance,” said Marshall McKnight, a spokesman for the US Treasury. UU
There are several ways to save on home insurance:
Purchases. While many owners believe that all insurance companies charge the same, this is a costly mistake. Use a service like ours to compare quotes from different companies in your area. Just use the form on the right.
“You can move from one company to another and pay twice as much,” Hunter said.
Do not just call an agent and expect him to do the shopping for you, Hunter warned since agents do not represent all companies and can not offer you the best price.
Insurance for “replacement cost” instead of “current value”. If your belongings are destroyed, would you like the insurance company to send you enough material to buy a new sofa or would you like a $ 50 check for the actual value of your 11-year-old couch?
Make sure you are covered for at least 80 percent of the cost of replacing your home. Otherwise, it can harm you even if your home does not need to be completely replaced.
Let’s say your house would replace $ 200,000 and you’re insured for only $ 100,000, half the replacement cost. If you have a loss of $ 10,000, you will receive only half of that amount, or $ 5,000.
Of course, it is not always easy to know how much it would cost to replace your home. For example, I know how much I paid for my house and how much I could sell it, but I have no idea how much it would cost to rebuild it if it burned.
The State Department of Banking and Insurance and the Insurance Council of New Jersey recommend homeowners in this situation to consult with their insurer, who can calculate the cost of reconstruction based on the size and location of the home.
Think again before calling your insurance company for minor claims for minor damage to the home. There were reports of homeowners facing significantly higher premiums after only two requests. So, if it’s a loss you can handle, take care of yourself.
And consider a higher deductible in this regard.
“If you do not file a small claim, it’s useless to pay a premium to cover an amount you would not request,” Hunter said.
“Every dollar you give to an insurance company, you get on average only 60 cents back,” Hunter said. The rest benefits the benefits and general expenses of the insurance company. So, if you can make sure of minor losses, you should do it.
About 20 years ago, Hunter increased the deductibles on his car and home policy and transferred the money he had saved into premiums to a special account. Over the years, he paid this account to pay losses of $ 2,000 to $ 3,000, mainly related to the automobile. He still has $ 4,000, money that the insurance company could have had.
“Today, most insurance companies recommend a deductible of at least $ 500. If you can afford to increase your deductible to $ 1,000, you can save up to 25 percent,” said the Insurance Information Institute, a group of the industry.
Make sure your home insurance covers enough liability insurance in case someone is injured on your property.
Consider buying your home and car insurance from the same insurer. Some companies get 5 to 15 percent of their premium if they buy two or more policies.
You will get discounts when installing smoke detectors, security locks or burglar alarms.
Keep your credit history clean. Insurance companies are increasingly looking for credit reports to establish their rates.