Home Insurance FAQ

by Guest » Fri Nov 21, 2008 05:25 am
Guest

What is home owners insurance?
Home insurance is designed to protect your home when disaster strikes. This insurance helps you recover from the damages that any disaster or accident causes to your home.
Related reading:
Home Insurance: Home owners guide to insurance
How much home insurance do you need?
You need as much insurance that will help you recover from a certain loss due to a disaster. It is neither good to be underinsured nor is it good to be over insured. So, consulting with an insurance agent is the best option when you have to determine the amount for which you need to buy insurance.
Related reading:
Home Insurance:How much is enough?
What is a deductible and do you have to pay one?
A deductible is the amount that you as a policy holder will pay for damages before you receive home insurance benefits from your insurance provider. If you have chosen a plan that has a deductible you may need to pay.
Related reading:
Are there property damage liability deductibles?
Hurricane Ike Help: Agent changed my deductible!?!?
What does home insurance not cover?
There are certain exclusions to a homeowners insurance policy. Disasters like flood, earthquake and maintenance damage are not covered by a home insurance policy. If you want to buy coverage for such conditions, you will need to purchase separate policies.
Related reading:
What does a standard homeowners policy exclude?
What is covered by content and building insurance under your homeowners insurance policy?
Content insurance under homeowner insurance covers the contents inside your home in case a burglary happens or if an accident takes place. Building insurance covers the structure of your home and provides coverage for doors, windows, driveways and roof etc.
Related reading:
Building Insurance: Coverage from hazards
How are damages from fire covered?
Fire damages are covered through fire insurance. Any damage to your personal property that is caused as a result of fire breakout will be covered under fire insurance. This insurance needs to be purchased separately and may not be covered under a general homeowners insurance.
Related reading:
Fire Insurance: Coverage to protect your home
How can you make homeowners insurance claim?
Making homeowners insurance claim, just like any other claim involves some clear steps to be followed. If you can follow these steps and have your insurance from a good insurance company, your claim settlement will be smooth.
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What is the most practical homeowners insurance coverage to have?
Home insurance coverage should be bought keeping in mind the needs of the policy holder (you). You must have a checklist that states why you want to protect your home and from what kind of disaster. The area you stay ins also helps determine the type of homeowners insurance you would require and that would be best for you.
Related reading:
What is the most practical home insurance
How can you get the best home owners insurance quotes?
Home insurance quotes depend on a lot of factors. The replacement value of your home, security systems in your home, the structure of your home and similar factors help determine the amount your would be investing in your home owners insurance policy.
Related reading:
Homeowners Insurance Quotes
Is home insurance mandatory?
Home insurance is not mandatory. Whether it is necessary or not is for you (the home owner) to decide. If you want to save yourself the trouble of spending out-of-pocket to recover when disaster strikes, it is advisable that you purchase insurance for home owners.
Related reading:
i have no home insurance is it necessary

Hi,
There are pretty many home in America which are still uninsured. To me all the home insurance policies look the same...what other things should I remember before and after I get the policy papers? Misty Valdez

Total Comments: 11

Posted: Fri Nov 21, 2008 06:20 am Post Subject:

Hi Misty, all the home policies may look same because they all cover some standard perils like-fire, theft, burglary, hail storm and such, but if you read the policy document carefully you'll find that they all are different in terms of coverage type, level of benefits and similar other parameters.

You need to shop carefully for the HO policies and should blindly accept what is suggested by the mortgage company. While shopping for the HO plan you should check out for- its cost, benefits, exclusions, perils covered and so forth.

You should also keep it in mind that the standard homeowners plans don't cover losses arising from flood and earthquake. Hence, you need to purchase separate coverage that would cover such perils.

Hope it helps.

Posted: Fri Nov 21, 2008 06:21 am Post Subject:

Yes, there are many uninsured homes across the US. You should always go for a home insurance policy that would suit the needs of your type of home. It is truly important for you to go through your policy basics. Look for a policy that would cover you from a large variety of disasters. Whenever your agent has explained the benefits of a policy, you should never forget to ask him regarding other policies. ArindamSenIndies

Posted: Fri Nov 21, 2008 06:26 am Post Subject:

That's right!
It is perfectly alright to compare the benefits of different coverages during your sign-up time. If you're looking for coverage for an older home or say one that has some add-on features, then you'd better opt for the special coverages. Special coverages would only be able to feed the damages for special features e.g. carved structures which could be expensive.
Evan

Posted: Fri Nov 21, 2008 07:05 am Post Subject:

Misty, you can check out with the state insurance department to get an idea on events that every HO policy is required to cover. It'll give you the basic knowledge about what to expect from the insurer.

It goes without saying that you're required to buy enough coverage for your asset, both for the structure and also for the personal belongings. Homeowners prefer to buy multi peril policies that cover evens like- theft, vandalism, lightning and also liability.

Hope it helps.

~Jeremy

Posted: Fri Nov 21, 2008 07:17 am Post Subject:

Home insurance would not only offer you liability coverage. It would also cover your building structure and other valuables. But remember that is never gonna cover your land. Almost all the better policies would offer the inflation protection hikes upon the insured worth. So, you'd just need to ensure that it is worthy of covering your home after this hike. Crossbreed

Posted: Fri Nov 21, 2008 07:19 am Post Subject:

Another important factor is the level of deductible. We all know that the rate of deductible affects the rate of premium. Hence, choosing higher deductible seems an easy option to lower the rate pf premium. The insuranece company might offer you $500 deductible on the policy which is more standard, but you can always increase the rate to save more. However, you should also keep in mind that it will be your out-of-pocket at the time of need. Therefore, you should also choose a comfortable level of deductible while choosing the plan.

Posted: Fri Nov 21, 2008 07:26 am Post Subject:

Hey Misty!
Well, in order to get a fair idea of the rebuilding costs around your place, you may need to conduct a thorough research and determine the cost per square foot. Yeah, in doing so you may need to consult a number of contractors and agents associated with real estate developments.
OldmanGarcia

Posted: Fri Nov 21, 2008 10:34 am Post Subject:

Hi all..I'd simply believe that the best way to go about this is to analyze our properties regularly. We may possess valuables like jewelry and electronic gadgets. But these are items that have restricted coverage under a home owners policy. This is the reason you need to analyze your personal property coverage needs and opt for individual policy for each such personal item.
Roddick

Posted: Fri Nov 21, 2008 10:40 am Post Subject:

Whenever you'd go for remodeling or interior changes, you'd need to think of your home insurance premium hikes for once. So, now is your time to consult your agent regarding your past upgrades as well as your future endeavors. Make sure that you consult an agent who's experienced and would be able to deliver a detailed account of the cost modifications associated with such restructuring of your home. Purpleheaded08

Posted: Fri Nov 21, 2008 12:03 pm Post Subject:

Hi..I think it is time for you to check out the floaters as well. Looking at the frequency of hurricanes, landslides and floods it would be a better idea to fill up all the gaps now. You may also consider an umbrella insurance for that purpose. Likewise, if you're running any home-based business, you may opt for a home business insurance as well. Roddick

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