For many of us, our home represents the single largest investment we will ever make. One of the best ways to protect that investment is through the purchase of homeowners insurance. The problem is that many of us don’t truly understand how a homeowners insurance policy works and exactly what our insurance policy will cover should a disaster strike. Rest assured, the home buyers essential guide will outline the facts you need to know about insuring your home.
What am I covered for?
Generally, all home insurance policies cover two main areas; Property and liability. Property insurance includes your house and any detached structure located on your premises such as a shed or garage. Your family’s personal items and contents are covered whether damaged in your home, car, or temporarily away from your residence. Valuables such as art, jewelry and paintings may require additional coverage. Ask your broker if supplementary coverage is needed.
Liability insurance is the second major component of your homeowner’s policy. If deemed responsible, this section will cover negligent acts you commit, anywhere in the world, which cause harm to others.
What situations am I protected against?
Home insurance policies can vary slightly, but most cover damages to the structure of your home and your personal contents caused by:
· Fire, Lightning or Smoke
· Explosions
· Lightning
· Riot or civil commotion
· Impact by aircraft or land vehicles
· Theft or Vandalism
· Falling Objects
· Freezing of pipes
How do I choose the right policy for my home?
The following coverage definitions of home insurance policies will help you understand and determine your current coverage:
Dwelling Building: Covers your house, attached structures, and permanent fixtures in the home, such as a dishwasher or air conditioning systems. The dollar amount of coverage listed should equal the cost to rebuild your home if a disaster occurred.
Detached Structures: Insures any structure that is not permanently attached to your main residence. Coverage extends to your fence, driveway, trees and shrubs.
Personal Property: This section provides insurance for all the personal property you and your family owns. Coverage for your personal contents is guaranteed no matter where you are in the world.
Additional Living Expenses: Should your home be unlivable due to an unforeseen event such as a fire, this section covers living expenses if you can not live in your home while repairs are undertaken.
What insurance options do I have?
Home insurance policies usually come in three forms. The Basic homeowner’s package is ideal for individuals looking to save a little bit of cash. This package provides coverage for your house, contents and liability. Basic home insurance provides coverage on a named perils basis.
If the basic homeowners coverage seems inadequate, you can upgrade to the Broad homeowners package. This policy provides all risk insurance coverage to your home and named perils coverage to your contents. This package is priced in the mid-level range.
The most inclusive home insurance package is titled Comprehensive homeowners. This policy provides all risk insurance coverage to your home and contents. Review the policy wordings as there are certain situations or exclusions under all risk insurance
Obtaining enough insurance coverage for your home is the only way to protect your most valuable asset. Your local broker is the best source for all your home insurance needs and questions. Make sure you understand what you are buying. It’s important to know who or what is covered, exclusions and policy limitations, how much coverage is provided and how to report a loss or claim. Remember to not confuse what you paid for your house with rebuilding costs. Insurance does not cover market value or the land.
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Frequently Asked Questions
Has everyone forgotten the elderly?
By: Fkdupworld | 15-07-2008
Are they actually going to fade out paper checks?,,,,,,,WHAT ABOUT THE ELDERLY THAT ONLY USE THEM.I suppose they want it all electronic so that they can steal your money easier.
Typical insurance sttlement for death of a family member in an apartment fire
By: David | 15-07-2008
My Three children were killed in an electical fire in the aptartment where they lived, I have a lawyer that is working on the case who seems to believe that there will be a settlement of some kind. What is the typical settlement in a case like this
8how can I get help with my student loan.... 825 ...
By: Fran | 15-07-2008
8how can I get help with my student loan.... 825% already consolidated and its killing me at $325.00 per month
Initial denial of claims for "independent contractors"
By: Albert | 15-07-2008
I am intrested in cases against geico or other insurance companies which initially denied coverage for accidents occurring while using personal vehicle as an "independent contractor" without notifying the insured of this exclusion.
Thanx, albert
(EMAIL ADDRESS: Makecogicbig@aol.Com
Party like a rock stat
By: valatine22 | 15-07-2008
21 and over invited to my party just answere back ok! ok! and my speacial guess is 50cent the party is on friday the 18 2008. Loser not invited like 50 cent said to me loser out out
I'm a small time real estate investor who has ran ...
By: jhrossii | 15-07-2008
I'm a small time real estate investor who has ran into a financial crisis. Is it wise to let my properties foreclose or file bankrupcy? I have never been late on any bills but the mortages on my properties are behind.
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