Home insurance a primer.....
This is a brief description of
Home Owners & Renters Insurance ..............
Key Insurance Benefits:
- Home insurance is the most important insurance for a family as the cost of a home is a major expense.
Home Insurance is a basic fundamental of financial security for you and your family.
It protects your home against the uncertainties of life so you can plan for the future.
- You can insure your home along with your contents inside your
home. There are different types of home insurance policies relating to various types of
homes such as condos, mobile homes, town houses etc, to suit varying needs and
financial requirements of home owners. There is even home insurance for renters.
- HOME OWNER’S INSURANCE: Most lending institutions or banks will check upon
your home insurance status before sanctioning your home loan application. The
factors that will determine how much premium you have to pay for your home
owner’s insurance include:
* The age of your home
* Building materials used to construct your home
* Its distance from the nearest fire station and the state/area/locality where it is situated
* The total number of rooms and square footage
* The type of heating system you have installed in your home
* The present condition of your home
* The number of people staying etc.
In addition to standard home owner’s insurance policies you also have to make arrangements to
protect your home from floods and earthquake that are usually not covered by standard home
insurance policies. So you can opt for supplemental coverage like flood insurance and earthquake insurance.
- RENTER’S INSURANCE: If you are living in a rented house then you have to opt for a separate
policy to cover your personal belongings and vital assets inside the rented condo/apartment. Your
landlord possesses a home insurance that covers only the home but not the belongings/possessions
of his/her tenants. A renter’s insurance plan ensures protection to your belongings. Liability protection
is an additional benefit offered by with most standard renter's policies.
- It is always wise to consult your insurance agent beforehand to know the exact limits of your home
owner's/renter's insurance policies so that you have adequate coverage and can claim the required amount.
Get an idea about the advantages of replacement cost policies and actual cash value coverage. The former
gives you more protection than the latter. To simplify your home insurance claims always make an inventory
list of all the objects and personal assets that you want to protect inside your own/rented home. Make
special mention to your agent about expensive and valuable assets as jewelry, electronic goods, antiques, etc.
- If you want to lower your annual home insurance premiums (home owner’s/renter’s insurance)
Increase the deductible
*Ask your agent about the different types of discounts such as discounts for installing fire/smoke/burglar alarms,
etc. or discounts to aged and retired policy holders and so on.
*Maintain a good credit history.
- To provide extra coverage for items as jewelry, computers, antique pieces, art collectibles, expensive
electronic items, etc. in your home you will have to pay extra premium that will help you buy endorsements
that enhance the coverage on these items. You can also opt for personal umbrella liability insurance for extra
- So select the right policy type, amount and deductible of home insurance to secure your home and all your
personal belongings inside and out.