Homeowners insurance is definitely great to have when you need it the most. If you are unfortunate enough to suffer a loss, your response will depend on the type of loss and the surrounding circumstances.
If someone is hurt while playing with your children on your property, you should call either a doctor, hospital, or parents in order depending on the severity of the injury.
If you come home after work to a burglarized home the first thing you do is call your local police station.
If you suffer from a fire most states have policies that state what to do in these sorts of losses. First, the insured should give written notice of all losses to their insurance company.
Next, you must protect the property from future damage. If the roof is partially destroyed, cover it and protect it from further weather damage.
After the damage is done, separate the damaged and undamaged personal property. Write a complete inventory of the completely destroyed, partially damaged, and undamaged property. In this list show detailed quantities, costs, actual cash value, and amount of loss claimed. It’s in your best interest to notify your insurance company as soon as possible, if you expect a speedy claim filed.
Learn from this example. In 1974, a Nebraska homeowner couldn’t collect insurance for the theft of his wife’s diamond ring because the insurance company wasn’t notified until six months after the incident. The court ruled that the wife’s fear of telling her husband that the ring was missing was not an excusable delay. Needless to say, the husband wasn’t too happy.
The homeowners insurance policy required that the insurer be given notice as soon as possible. It’s also a good idea to call your insurance agent if there’s a loss of any kind just to see if you’re covered.
In the event that your family’s loss is so great that your home is inhabitable, you will quickly need to find a place to live. Some people stay with family, friends, or neighbors until the claim is settled. Insurance companies reimburse you should you be forced to stay in a motel. Some families rent a mobile home and move it to their property. There are several advantages to this. The main advantage is living on the property in a trailer is that it will reduce the chance of criminal activity on your property.
This also gives the property owner the opportunity to supervise the rebuilding process once the claim has been settled.
If you aren’t fortunate enough to remain on your property, you must take the necessary precautions to reduce the number of potential hazards. This includes boarding up any broken doors, windows, and holes in the building. If it’s cold weather, have the water turned off to prevent possible damage due to freezing.
If you insure a substantial loss to your property, and it is mortgaged you should notify your mortgage company. During this process it is essential to keep your payments up to date. If you don’t it gives the company justification to take the proceeds and use it towards the mortgage.
Regardless of whether you are leasing, renting or owning your home, you will want to invest in homeowners insurance to protect your investment and your contents. There are many things that can go wrong in a home and cause a loss of items, the home structure itself, and injuries to persons in the home. Injuries to people are covered by the liability insurance portion of your homeowner’s insurance and protects you from visitors and others who have hurt themselves on your property.
When you purchase a home, chances are that you have gone to a financial institution to get a mortgage to pay for the home. In effect, the bank actually owns your home and you are paying them back—once you have paid them back, then you ‘own’ the home. In the meantime, you own part and the bank owns part—simply because it is their money that secured the home for you. Most financial institutions require that you have homeowners insurance. This is to protect their investment in the home from loss as well as to protect you from any loss of the home itself. In the event of a catastrophic accident where the home is damaged or destroyed, if you do not have insurance, you will still owe money to the bank for the mortgage. Homeowners insurance protects you from this devastating financial loss in the event of a peril happening to your home.
Most landlords or leasing companies also require you to have some form of renters insurance on the contents of your home. Your landlord is not responsible for the contents of your home in case of loss or damage due to a perilous event. However, on the flip side of the coin, you are not responsible for insuring the structure of the home or apartment building from damage or loss. If you are renting or leasing a home or apartment, you will want to get renters insurance to protect your valuables and contents of your home. Ensure that your landlord has adequate structure coverage for the building itself.
Even if it seems that you don’t own anything of value and you are renting or leasing a home, everything in your home is valuable. Can you imagine not having a bed to sleep in, clothes to wear or food to eat? Could you afford to replace everything you do own in the event of fire or theft? The answer is probably no. Renters insurance covers everything in your home, right down to your socks.
Homeowners insurance and renters insurance is a wise investment. Of course, one hopes that it is never needed and that it’s an ‘extra purchase’ that you don’t ever have to use, however, if you do need it someday, you will be glad you made that ‘extra purchase’ which will save you thousands and thousands of dollars.
No one can predict the future—fires, theft and damage occur all the time to homes and contents across the country. It could happen to you, too, no matter how careful you are. Find out what your bank, landlord or lease company requires you to have for insurance and find out from an insurance company, agent or broker which coverage suits you best.
It’s a great feeling to save money on your homeowners insurance, every little bit counts. When it comes to saving on your policy, there’s a few things you can do to make sure you’re getting the largest discount. You might not be able to follow each tip, but keep them in mind when you want to save money on your homeowners insurance.
1. Don’t smoke in or around your home. Naturally, smokers increase the chance of having a fire start in the house. Insurance companies will take note of this and adjust the cost of your policy accordingly. Savings of around 5% can be had, depending on your company.
2. Install burglar alarms or some kind of effective home security. Modern security systems are getting very sophisticated, yet more user-friendly and simple to operate. A basic security system might meet your needs just fine, but you might want to look into easy upgrades that enhance the effectiveness of your security system. If your security system is hooked up to your local police station, your savings could possibly be higher.
3. Set up an automatic sprinkler system. A functional sprinkler system is naturally one of the best defenses against a house fire. Automatic fire sprinklers are very simple and effective when it comes to fighting fires in your home. When heavy smoke is detected, it sets off the sprinklers. Enough water is dispersed to eradicate a fire in the beginning stages, or effectively slow a fire that’s bigger.
4. Have deadbolt locks installed. Although these may not be foolproof, they do help deter and slow down burglars. Along the same lines, consider getting secure locks for your windows. Insurance companies may also be able to reduce your premiums because of all the extra beefed up security.
5. Keep your jewelry, gold, and other valuable possessions in a local bank safe deposit box. Many insurers will give you a discount for this.
6. A few companies give discounts to seniors, going with the assumption that most seniors will be home so it would naturally keep burglars away.
7. New homes might get discounts on their homeowners insurance, simply because new homes generally have better fire protection than older homes. The materials used on newer homes are less prone to fire, so you may be able to save a bit of money on your homeowners insurance.
8. Naturally, wood is more susceptible to fire than stone. Because of this, some insurers will give you a discount if your home is made primarily of brick or stone, rather than wood. If your home is made of any other materials that are fire-retardant, make sure you let your insurance company know, since you may be able to get reductions on your homeowners insurance.
Combine as many of these money-saving methods mentioned above with the highest possible deductible that you can afford. This is the most effective way to save the most money on your homeowners insurance. There’s more ways than one to save money on your homeowners insurance, so take the time to explore for even more.
When you first think of homeowners insurance you might automatically think fire insurance. What most people don’t know is that homeowners insurance covers much more extending coverage on all possessions regardless of where you are when the damage covers.If you were on vacation, for example, and your expensive camera was stolen, your homeowner’s insurance would cover its loss.
Homeowners policies cover your main areas of exposure.
1. Damage to your home and / or any other structures on your property.
2. Liability for which you are found responsible in most situations in all areas of the world. If a claim is filed against you for causing a personal injury or damage to property, this liability coverage will pay for all expenses and legal awards up to the limit policy.
3. Damage to all of your personal property with some exceptions such as your automobile.
4. Living expenses if your home is rendered uninhabitable due to fire or another covered disaster. This is sometimes called loss of use coverage, and includes payment or reimbursement of hotel and restaurant bills.
Homeowners insurance will also cover your legal liability if someone decided to sue you for something that occurred on your property. Standard liability coverage is $25,000, which is hardly enough to meet today’s liability needs. Make sure you are protected and get more than enough coverage.
Accidents happen every day. Say a local handyman falls over your children’s bike and suffers major injuries. He’s now left unable to work, and has a pile of mounting medical bills. In today’s hospitals $25,000 doesn’t go very far if you suffer from substantial injuries.
Most injuries today are also awarding huge sums in liability cases so you would be smart to carry at least $100,000 in homeowner liability coverage. If there’s any serious construction going on at your property, the more coverage the better.
Homeowners insurance cannot only help you liability wise, but it also provides a complete package of protection. It not only covers the home itself, but all of your personal belongings as well. This would come into play if your property suffered a terrible fire, or if a robber broke in.
Another great aspect of homeowners insurance is you can purchase liability coverage policies on all your family members, including family pets! This kind of protection is vital in case one of your children were to cause injury to another child at your residence or on your property. This type of liability insurance on your family dog would protect you if your pet bit someone. It would be a good idea to have this kind of coverage if your dog is a breed that is prone to aggression.
Unfortunately, two perils that are not covered by homeowners insurance policy are flood damage and earthquake damage. This doesn’t mean that you can’t get protection against these tragedies, however.
Any insurance agent should be able to tell you about, and how to obtain these, should you feel you need it. Special policies are available from the federal government. You might want to look into getting these policies, depending on your location.
If you’re paying on a Homeowners insurance policy that your bank has accepted, then you’ve got enough coverage for your needs, right? You may be right – but chances are that if you assume you have enough insurance coverage, you’re very wrong. The mortgage company or bank is only concerned that you’ll get enough from your insurance company to pay off the mortgage if something happens to your home. The last thing you want to learn when disaster strikes is that your home insurance coverage isn’t enough to rebuild or repair your home – or worse, that you’re not covered for the damage at all. With the list of exclusions to homeowners’ insurance growing almost daily, homeowners need to sit down with their insurance policy and take a serious look at what coverage they have – and more importantly, what coverage they don’t have.
Below are some typical exclusions to standard life insurance policies. Take a close look at your policy, assess the risk factors for your property, and then call your home insurance agent to find out what coverage you have and which you need to be sure that your home is insured for the most likely risks you face.
Many Southerners learned to their dismay that their homeowners’ insurance did not cover damage from hurricane. Don’t assume that your home is covered in case of fire, flood or other natural disaster. Read the fine print to be sure exactly which natural disasters are covered and which are not. In most cases, floods are not covered. You’ll need separate flood insurance from FEMA. If you live in the forest or far from a fire station, you may not be covered for fires. In general, the higher your risk of a natural disaster, the less likely it is that your standard homeowners insurance will cover it. Talk to your agent about special riders of disaster insurance policies.
In most cases, the entire contents of your home is covered under your homeowners’ insurance, but if you own luxury items like expensive jewelry or collectibles like coins, you may be limited in the amount you can collect. Talk to your agent about riders to cover expensive jewelry, watches, furs, guns and other high-ticket items.
Acts of War or Terrorism
Before the World Trade Center disaster, few insurance companies excluded acts of terrorism from their insurance coverage, but it’s becoming more and more common. If your home is damaged or destroyed in an act of war or terrorism, you may be on your own.
Computer and Technical Equipment
If you have more than one computer or if you use your computers for business purposes, the equipment may not be covered under your homeowners policy. Even if it is, you may be limited to recovering only what the equipment is worth now, not the cost of replacing it. If you depend on your computers for business, or if you own more than $2,500 worth of computer equipment, it may be worth insuring it on a separate rider.
Many people make the mistake of believing that all homeowners insurance policies are essentially the same, and that they basically cover you for any conceivable loss. This couldn’t be any further from the truth, and believing the same is both disappointing and costly. A close friend, for example, made the mistake of assuming that his car stereo was covered in his homeowners insurance policy. When his car stereo was stolen, he had to pay for the bill. Unfortunately for him, he found out the hard way that he wasn’t covered.
In order to find the best price on your policy, know if you are a good risk first. Some companies are very selective about the property they insure, preferring to give homeowners insurance policies mainly on what they call “preferred risks”. A preferred risk is a risk that’s desirable for them to take, basically because there’s little chance for anything to happen to your home. A new home in a desirable neighborhood is a good example of a “preferred risk”. An 80-year-old home with an outdated electrical system and rotting wood would definitely be considered a bad risk.
It’s best to buy your insurance from a company that chooses its clients very carefully. The price of the insurance will not only be lower, but the service will be better as well.
In order to get the best deal possible, you’ll need to shop around and inquire with a few different companies. Prices for identical policies can vary by as much as 60 percent from company to company, so it’s crucial that you spend some time searching. Don’t forget to ask the agents to explain the coverage, and ask lots of questions if you need to.
If you have a great claim record, don’t be afraid to ask for special discounted rates for preferred customers. A lot of companies offer things like this, but you have to make the effort to ask in order to garnish any real information about them.
Another simple, yet very effective way to save money on your homeowners insurance policy is to have a high deductible. The deductible is the set amount that is automatically deducted from the loss value before a payment is made. By choosing a higher deductible, you can save as much as 25 percent on your payment.
It’s smart to make sure you insure all property that you can’t afford to get stolen, and be sure to insure it to the full amount. You’ll be able to dodge the costly mistake of not having enough insurance when you need it most, or not having the right insurance for an expensive item.
Once you decide on your homeowners insurance policy, the price of molding it to fit your specific needs is not as high as you might expect. If you want coverage for earthquakes, for example, the price of an earthquake endorsement will usually be a fraction of the price of the initial policy. If you want a policy that insures personal property items, the extra cost will probably be a lot smaller.
The economic climate changes from time to time. The prices of necessities such as food and clothing often increase. This is why many American families are having a tough time keeping up with their allotted budget for monthly expenses. Utility, mortgage and other bills are some of the basic expenses a family pays on a monthly basis. Many homeowners are always checking homeowners’ forums for information regarding ways to save on home protection packages. Some homeowners spend time looking for cheaper rates by asking for various home insurance quotes online.
Many people are becoming budget conscious and are always resorting to thrifty and money-saving measures. We see people buying economic and cheaper brands of their necessities. However, there are more ways to save money than buying a big economy can of Lima beans or cutting down your grocery bills. Instead of trimming your basic grocery list, one can save more if the monthly bills can be reduced like home insurance. An average family can save a lot if they can lower their policy rate. So how do you lower your rate? Raise your deductibles. Raising deductible means lowering the premium you have pay. By raising deductibles and improving one’s house, you can cut down monthly rates.
Insurers require homeowners to buy separate policies depending on the location of their homes. In some areas, insurers require homeowners to buy flood, wildfire, and earthquake insurances, it may be expensive buying these separate policies however these each of these policies has its own deductibles. Ask your agent what kinds of deductibles they offer for these separate package policies. To get things started, let me help you improve your house using only limited funds and lower your deductibles.
Building and making home improvements is a big investment, not only it can lower your rate but it also increase protection for your home, retrofitting your old house is one way of saving money especially in earthquake-prone areas. In this way, you can raise your deductible and save money.
Here is something to consider as a good way to save up money: In improving and reinforcing your homes, look for hardware stores that are offering sale promos or discounts on their construction materials. You can save money too, by buying discounted construction materials. If your budget is ample enough buying extra construction materials when there is sale is a good way to save money, because whenever a disaster strikes, prices of construction materials have the tendency to go up.
Many areas are prone to criminal activities like theft and burglar attempts. Installing a security monitoring system and anti-theft devices could secure your home and some agencies offer deductibles if devices such as these are installed in your home. However a homeowner should check with the insurer to find out if they offer deductibles for adding security devices. Ask for a complete list of what systems qualify for a discount before buying or installing the system.
Some stores that sell alarms and anti-theft devices do inventory sale, however, do not buy these sale items quickly, only to find out that your insurance does not offer deductibles for these devices. Remember to calculate and estimate. Calculate also the cost of the devices you plan to install, installing expensive security devices which is qualified for a low and minimum discount is a bad idea.
Always be updated on the industry by checking websites of agencies and asking for home insurance quotes online, can help you find better and lower rates for your home.
There are many ways to save money. Rather than cutting down on the necessities like food and clothing, it is wiser to make a long-time investment by devising ways to lower the monthly bills including home insurance rates.