HOMEOWNER INSURANCE
Homeowner insurance will protect your home and belongings against the perils listed in your policy. Rates vary depending on your geographical location.If the area you live in is prone to hurricanes, floods, hail, earthquakes, fires or other natural disasters, your rates will be higher. A variety of factors will determine or have an impact on your homeowner premium. Even the proximity to fire stations and fire hydrants will have a bearing.
COVERAGE FOR HOMEOWNERS
The first thing to take into consideration is to make sure you have enough coverage. Your policy will have a stated maximum amount of coverage for both the home and contents. Home coverage is usually based on replacement cost. You must ensure your coverage is enough to rebuild the home in the event of total destruction. It is important to update your policy as the replacement cost rises or falls due to inflation or a depressed economy. Also of importance is to ensure 100% of the replacement cost. This may require an appraisal to make sure of the value of your home.
Coverage for personal property comes in two different types. Actual cash value for contents includes depreciation. Actual cash value deducts the depreciated value and that means you will only receive a fraction of the original cost. Full cash value covers contents without depreciation. It is advised that an individual purchase full cash value coverage. Also additional coverage is needed for items such as jewelry,fine art, furs,electronics, collectibles and antiques.
HOMEOWNER LIABILITY COVERAGE
Liability insurance is very important. It protects the owner and his family from lawsuits stemming from someone else's injury or property damage. Standard liability is $100,000, but additional protection is recommended if the homeowner has sizeable assets. Liability coverage protects the policy holder against personal liability, damage to the property of others and medical expenses for injury to others. If your premises is damaged to the point of being uninhabitable, your policy will pay for living expenses.
It is advisable to read your homeowners policy, know what is covered and for how much. A room by room inventory is important in the event of making a claim. Keep all sales slips with date purchased, serial numbers and either video tape or take still photos. These items should be stored in a fire-proof box or a bank safety deposit box.
WAYS TO REDUCE COSTS
1. Shop around.
2. Raise the deductible.
3. Buy home and auto from the same insurer.
4. Insure the house, not the land.
5. Beef up home security.
6. Stop smoking.
7. Ask for senior's discount.
If need be, compare the limits in the policy with the value of the contents and home value on a yearly basis. Major purchases or home improvements will change the need for additional insurance. With homeowner insurance there are many variables, so shop around. It is possible to save hundreds of dollars a year by shopping rates and coverage. If you are ready to save money and get your five no obligation quotes, please click on the banner below.
