how to select a good home insurance plan
how to select a good home insurance plan
If you ever wondered what exactly is home insurance, here is an overview
Home insurance or Homeowners insurance basically provides financial protection against disasters. It is a standard policy that insures the home itself, all the contents inside it and liability for accidents that may happen at your home within the policy territory. Homeowners insurance covers both damage to your property as well as your liability or legal responsibility for any injuries and property damage. Your personal property could consist of clothing, furniture, computer equipment, jewelry and others things. Finally, if your home is completely damaged and you are homeless, your living expenses will be covered under property protection as well. Hence this is a kind of a package deal. Damage caused by most disasters is covered in the package with few exceptions. You need to consult your insurance company to ask about any exceptions that may apply in your policy. The major liabilities covered under home insurance are damage floods, earthquakes and poor maintenance. Two different policies for flood and earthquake coverage are required. The value of every house under insurance is usually determined by the value of the home in the property market and the amount for which similar homes in the specific area are worth. The value will differ for different cities or countries, and will be determined differently.
This kind of a policy is usually a term contract and applies for a fixed period of time. A home insurance policy will remain active over a specific period of time, where the policy holder needs to pay premiums to the insurance company. The amount that needs to be paid towards premium will entirely depend upon how susceptible the home is. The more susceptible the home, the higher will be the premiums. There are three types of homeowner's insurance policies known as HO-1, HO-2 and HO-3. The most common home insurance policies are HO-3, as they tend to cover both the house and its contents.
The typical home owner's insurance policy is divided into 2 parts
- I: Home Insurance Property Protection
- II: Home Insurance Liability Protection
The property protection part of the homeowner's insurance policy will cover any damage caused by storms, ice, fire, snow and theft. These policies do not cover damage caused by floods, hurricanes and earthquakes. Therefore those homeowners living in such areas can always add such coverage options in their policies for an additional cost. The liability portion part of the insurance will cover you against injury on your property. However, you must remember that any negligence in your property and if someone gets injured as a direct result of that, you will personally be held liable for such injuries.
Here is how you can get cheapest homeowner's insurance
1.Do a personal estimation of what your house is worth. Including all its contents and your personal belongings.
2.Go online and do some research on the houses in your area. See how the premium rates vary and try to find out why.
3.Try to get quotes from various insurance companies. Talk to local agents and find out the rates.
4.Don't forget to ask what the exceptions are and how much of additional premium you will be required to pay in case you want to add them.
5.If possible combine policies with the same provider. For example, if you have an automobile policy with one agency, you can always try combining this with a homeowner's policy to lower your premium rate.
6.Ask for methods to decrease your premium. For example - If you buy and install a security system, or fit fire safety equipment in your house, it may qualify you for certain discounts or decrease your premium rates.
7.Before purchasing the policy check how friendly their customer care is. You may have bought a cheaper home insurance policy online but in case of an emergency you might have difficulty collecting your claim.
8.Try to get the complete information on all the policies this will help you on your final decision. Without it you can't really compare and narrow it down to one.
9.For senior citizens over the age 62 may be eligible for a lower premium rate from certain companies. Try to find them online or ask around for the best deals.
10.Understand the different types of home insurance policies; this will also help you make the decision wisely. You can get all the information you need online. Stroudsburg Residents Learn About Taking Inventory for Your Homeowners Insurance Homeowner's insurance too high? The Importance Of The Right Home Insurance NJ What One Should Know About Home Insurance Colorado Springs: Getting Quotes In Home Insurance Things To Know About Home Insurance In Austin Getting A Stress-Free Auto Moving Process Homeowners Liability Insurance Insurance 101 for Homeowners How to Save on Home Insurance Buy to Let Home Insurance for Investment Properties Finding The Very Best Manufactured Home Insurance Obtaining Affordable Home Insurance In Florida