Home Insurance

If you have a mortgage, then you already have home insurance. But do you know why you need home insurance? Do you really know what is covered by your policy? Or did you simply sign up for home insurance because your lender required it? Knowing what your home owner’s insurance covers, and why you need it, will take you far should you have an emergency. Take the time each year to review your home insurance policies and make certain you have the coverage you need.

You need home owner’s insurance to protect your biggest investment – your home. Without it, all the time, energy, and money you have invested in your home will be lost, if you have a natural disaster or robbery. With an insurance policy on your home, you are protecting your home from damage due to natural disasters, theft, and other events. Fire, tornadoes, theft, and storm losses will all be covered by a typical home owner’s insurance policy.

Mortgage lenders require insurance policies on the homes they finance, because they are investing their time and money into the property, as well. Finding financing for a new home purchase requires having home insurance in place. Lenders will require those applying for a mortgage to purchase an insurance policy that is equal to the cost of the mortgage. This allows the mortgage to be paid in the event that the home is damaged or destroyed.

Most homeowners choose to purchase an insurance policy that is larger than the amount of the mortgage. They realize that their possessions are at risk, as well as their actual home and property. They also realize that their home and its contents will probably appreciate as they live in it, and property values will probably increase, as well. As a result, most people purchase a policy that covers not only their home, but also the items inside, and one that will take into consideration appreciation over time. Certain items in your home may require additional coverage, so speak to your insurance agent about expensive technology, jewelry or art in your home.

Property insurance is sold through agents and brokers. There are two types of agents, independent and exclusive. Agents represent the different companies that sell insurance, and brokers represent the homeowners that are shopping for insurance. Both agents and brokers, however, work towards finding the best insurance for their customers.

Choosing the right insurance broker or agent to help you shop for your home owner’s insurance policy is crucial to finding quality home insurance. There are a few things you should consider when choosing a broker or agent.

First, decide if you want to work with a broker or an agent. Remember, a broker does not represent any particular insurance company; whereas, an agent will have an insurance company that they are working for. Some agents are independent agents, and they will have several companies that they represent. Other agents are exclusive agents, and they will work with one particular insurance company. Using an agent is not bad, provided you have done the homework to compare home insurance policies before contacting the agent.

If you want someone else to do that research for you, consider working with an insurance broker. The insurance broker will help you compare home insurance policies, finding the one that meets your particular needs and concerns. Also, an insurance broker receives a commission no matter which insurance plan they sell you, rather than an agent who will receive a higher commission, if they sell you the policy they are representing.

One way to determine which broker or agent you want to work with is to talk to others who currently have property insurance. Find out what agency they used, and what their experience was. If your friends or family recommend a particular insurance agent, chances are that agent is doing something right. It is worth giving them a second look. Also, call different agents or brokers and talk to them about what you are looking for in an insurance policy. Find out how they would help you find home owner’s insurance, and which companies they would recommend. This should also enable you to price compare a variety of property insurance options. These types of questions will show you quite a bit about the integrity of the agent or broker.

While insurance policies will differ in many respects, there are certain things you can count on finding in your home owner’s insurance policy. These are property damage coverage, personal liability coverage, medical payments coverage, living expenses coverage, and a few other types of coverage.

Property damage coverage is the type of insurance coverage that home owner’s usually think of when they think about their insurance policies. This coverage will pay for damage to the home and the property it includes. Usually, outside structures are also included in the home insurance, at a discounted amount. Personal property inside the home is also usually covered. The property inside your home is covered for its current replacement cash value, not purchase value.

Personal liability coverage is an important aspect of your home insurance. This is the part of the insurance policy that covers any liability you have from accidents caused on your property. This includes any injuries caused by you, your pet, or someone in your family. There is no deductible with liability coverage, but there will be limits placed on the policies. You may find that certain breeds of dogs, swimming pools, or trampolines may cause difficulties with coverage, or require additional costs.

Medical payments coverage pays for any medical bills that someone receives because of an injury that occurs while they are on your property, even if no one in your family is at fault. This coverage pays only reasonable charges, and not far-fetched medical treatments someone might claim they needed from being injured on your property.

Should you need to stay in a hotel when your property is damaged, such as in the event of a fire, your insurance company will pay a portion of these living expenses under the additional living expenses coverage on your policy.

Some insurance policies will have debris removal coverage. This is particularly helpful in the event of a natural disaster, when there are many tree limbs and other debris that need to be removed. Even a severe thunderstorm can cause debris, so this can be useful, particularly if you are not inclined to do this sort of work yourself. Also, most home insurance policies will cover a portion of the landscaping around the property that is damaged due to a covered cause.

It is impossible to say exactly what items will be excluded from coverage in your home owner’s insurance policy, but some items are commonly excluded. Sometimes, homeowners can find policies that cover the excluded items, if they are willing to pay extra for their insurance.

Most home owner’s insurance policies do not cover the loss of a pet or other animal due to a covered event. Those homeowners who wish to have their animal covered should seek pet insurance that has a rider to cover the loss of the pet. Also, property insurance rarely covers the damage to a car or other vehicle, since that would be covered under the automobile insurance.

The damage caused by flooding is usually not covered in a typical home insurance plan. This would include water damage, loss of property, and even the destruction of the home. Those that live in areas that are prone to flooding need to seek flood insurance in addition to their home owner’s policy. Should your pipes or sewer system back up or break and cause damage to your home, this would not be covered under a typical home owner’s insurance plan. While flood insurance can be expensive, it may be a necessity if you live in an area prone to flooding.

Remember that every insurance policy is going to be different, so ask plenty of questions before you purchase a policy. Make sure that whenever possible, you are covered. For example, some insurance policies do not cover damage from ice storms. If this is a concern in the area where you live, ask before purchasing the policy!

A typical home owner’s insurance policy covers the property, medical bills, and liability of the homeowners. This is the most common type of insurance policy sought by homeowners and buyers. There are several other types of insurance, however, that would also fall under the category of property insurance. Some homeowners confuse these with home insurance.

A dwelling policy is a type of property insurance that covers only the actual property that is in the policy. If the property should be damaged due to a covered event, the insurance would pay for the damage, minus any deductible. There is no medical or liability coverage in a dwelling policy. A home that is not eligible for home owner’s insurance, such as a summer cottage, could have a dwelling insurance policy placed on it.

Condominium insurance is another type of property insurance. When you purchase a condominium, the actual building and land is already covered under the condominium association’s insurance policy. The condominium association’s policy does not, however, cover damage to your personal property. This is what condominium insurance covers.

Individuals living in a mobile home can apply for mobile home owner’s insurance. This is a type of insurance designed for the specific needs of a mobile home. It typically includes damage to the home from natural disasters, coverage for theft, and liability coverage. Many policies require that the individual have their mobile home secured to the ground before they will approve the insurance.

Those who live on a farm can purchase a form of home insurance that covers the livestock and crops on their property. This is typically called farm owner’s insurance. The terms are similar to a home owner’s policy, with the exception that the equipment, animals, and crops on the property are included in coverage.

If you are in the market for home insurance, you are probably interested in saving money. Each insurance company is going to have different reductions they are willing to offer to help you reduce the cost of the premiums on your insurance policy. Your broker will be your best source of information as to the types of discounts you can receive from any particular company. Take the time to compare prices on insurance policies from a variety of companies, either via your insurance broker or on your own.

A common discount offered to insurance customers is a discount for having multiple policies with the same insurance company. If you are working with an insurance company that also sells auto and life insurance, talk to your agent or broker to find out if there is a discount, if you move your other insurance policies to their company. You might find that you will save as much as fifteen percent by doing this.

If you install devices into your home to protect you from theft, fire, and other potential problems, you will probably receive a reduced insurance premium. Smoke detectors usually bring a discount between two and five percent. A burglar alarm would also bring this small discount. For a deep discount on your insurance policy, you may want to consider installing a sprinkler system. Before installing anything into your home, however, talk to your insurance company to find out what brands and systems they offer discounts for.

If you do not smoke in your home, some insurance companies will offer you discounted property insurance. Also, if you are building a new home, you may want to look into fire resistant materials for the structure. This can bring an insurance discount. Finally, you may receive a discount on your home insurance premium, if you have been a customer of the same company for many years.

The work of comparing home owner’s insurance companies should start with your broker or agent. If you are using a broker who does not work for a particular company, his or her goal is going to be to find you the best possible deal on your insurance policy, since this will keep you as a customer. Carefully lay out what you are looking for, then request to have quotes from several different insurance companies.

Compare home insurance policies carefully. Do not assume that the least expensive policy is the right one for you. There are many questions that you need to ask to make sure that everything you need covered is going to be covered. Remember, not all insurance policies are created equal!

Ask specific questions when you compare home insurance policies. For example, find out what would happen if a falling limb damaged your roof during a storm. Make sure you are given specific answers as to the way your coverage would be paid.

Look closely at the deductibles on the policies. An inexpensive policy almost always comes with a high deductible per event. You may find that it is more cost effective to pay a little more for the policy, yet pay less when a disaster occurs. Avoid the temptation to take the cheapest policy without looking at it in detail.

Also, find out how policies work. Ask how your benefits would be paid to you, should you have a loss. Find out the proof you would need to give the insurance company of your possessions and the loss. Talk to your broker about the influence depreciation has on the value of your policy. By asking these sorts of questions, you will be able to determine which insurance policy is best for you and your particular needs.

Once you have your home insurance in place, you should make an inventory list. An inventory list is a list of the items you have in your home. Many find that they can make this list easily by taking pictures of every room of their home. Also, home owners often choose to make the inventory list from items with considerable value and difficult to replace.

Your insurance company uses this list should you have a disaster, such as a house fire. Consider how anxious you will feel should your home be destroyed in a fire. The last thing on your mind is going to be sitting down and making a list of all your valuables. If you make this list ahead of time, and put it in your safety deposit box, you will have one less thing to do if you have a disaster.

Consider that a written list is not always enough proof for your insurance company of the existence and value of the items in your home. Consider taking a visual inventory, such as a video tape or photographs, of the items in your home. Also, receipts for items you purchase are a great way to keep track of how much your property is worth. Submit this list or record to your home insurance provider, so they have the proof should you need to make a claim.

If you have a loss, such as a fire or theft, the first thing you should do, of course, is call your emergency professionals. Once that is done, call your insurance company. You will be given a number to call when you need the insurance company, and you need to know where that number is!

Find out immediately what you need to send to the insurance company based on your home insurance policy. Find out what forms you will need to submit. Take some pictures to document the damage. Then, make any repairs that are needed to keep your home from sustaining any more damage. If a window in your home is broken because of a burglary, you need to repair the window quickly, to keep another burglary from happening. If you do not, the second event may not be covered. These repairs can be temporary, such as boarding up the window. Just do what is needed to protect your home and property from further damage.

Finally, keep a record of all expenses that you incur as a result of the event. Copy all receipts, and be ready to submit them to the insurance company when the time comes. If you do not keep documentation of your expenses, you will not be paid. Keep a file with you at all times where you can put paperwork relating to the expenses you are receiving. This final step will ensure that you are paid what your home insurance policy covers.