Home Insurance

HO3 policy in home owners insurance is the basic peril policy and is the most common yet most popular type of insurance. With this policy in place your house will be protected from every danger possible unless it is specifically excluded from the policy. A standard HO 3 policy covers perils that cause damage to the dwelling, other structure of the house and also loss of use.

Your standard home owners insurance will protect you from listed perils but for a damage caused by flood, you need to purchase a separate policy. There is a National Flood Insurance Program (NFIP created by the Congress in 1968 in order that homeowners or renters may protect their property from flood damage. Do you need flood insurance? If you live in a high risk area that is prone to flood and have mortgages from federally controlled or insured lenders you must have flood insurance.

How much you pay for your home insurance largely depends on a few factors. It is your home and you will take every step to protect it from harm’s end. But, when you are investing money you must know how your money will be used for the benefit for your home. You must be aware of how much you should invest in order that you can properly care for your home. You don’t want to spend unnecessarily and hence must have an idea of what are the factors that contribute to the premium you pay for home insurance.

Many homeowners are not aware if their insurance policy provides adequate coverage or not. As a policy holder you must be in tune with what your insurance policy provides. If your house suffers serious damage, would your homeowners insurance adequately cover for replacement and rebuilding costs? Will it pay if you have to move to a temporary location and for any other related expenses while you are displaced? You may be spending billions on your homeowners insurance policy but rarely update your coverage. This may leave you considerably underinsured.

It is not surprising if you have met anyone who has shifted places due to the toxic mold damages caused to his home. If your insurance carrier is good enough to cover for it, then you are certainly lucky to have a six figure insurance settlement. On the other hand you do not stand the chance to avoid paying for the entire cost of your home. We are quite familiar with cases wherein the insurance carrier has denied mold damage claims. Many of us would simply love to believe that our policy would save us from mold damages while in reality it would not.

What are the exclusions of homeowners insurance? Your homeowners insurance covers for damages caused due to a disaster. It is meant to help you recover from a loss due to natural or man made disasters. However, there are definitely certain exclusions to homeowners insurance. It does not cover every peril. But you can still find protection against those perils by purchasing additional policies. The exclusions in homeoweners policy are: Flood: A standard policy does not cover damage due to flood.

All of us cherish to have a home, Home sweet Home. But we need to keep in mind that just by possessing a home it’s not enough. We also need to consider about its security.

Even if you are in a rented home, you bear some responsibilities towards your home. And to share that responsibility with you, the home insurance companies have framed the home insurance policies for you.