Home Insurance Policy Information
Life can be complicated. But your home insurance policy doesn’t need to be. Once you have a good understanding of the basics in order to make an informed decision, the choice of home insurance policies is yours.
You need to know what is in a basic homeowners insurance policy, what is covered under that policy and what additional coverage you may need, and how to adequately protect your property and your home.
Whether you’ve owned your home for years or are a first-time buyer, being an informed shopper empowers you to compare and choose the right insurance company. Find the company that offers both the coverage you need and the right price.
Understand What Your Home Insurance Policy Includes
It’s important that you know what’s covered in your policy and what’s not. A clear understanding of your homeowners insurance policy will avoid unpleasant surprises.
The main reason for having a homeowners insurance policy is for security and peace of mind against disasters. If you have a home insurance policy with the correct coverage, it will provide you with the money you would need to rebuild your house in case of damaged or stolen possessions that you have included in your policy.
Basic Coverage
Any basic homeowners insurance policy includes coverage for the house itself, personal belongings, liability protection and living expenses that you might have to pay in case you couldn’t reside in your own house.
All homeowners insurance policies include coverage for instances of fire, theft or vandalism, among other perils. But some natural disasters, including floods and earthquakes, may not be included in the regular policy. Be sure to ask your insurer what your policy includes. You may want to add additional coverage if you believe your home is at risk for natural disasters not covered by a basic policy.
Your insured goods will be paid by your home insurance company if it was stolen from the home or damaged by one of the insured natural disasters.
Liability Protection
Liability protection pays for your defense in a court against legal action for estate damage or bodily harm caused by you or family members.
Additional Expenses
Expenses like hotels and restaurants might be paid by the insurance company until your house is inhabitable again — though this varies from company to company, so make sure to pay attention to it if you are comparing several contracts.
You should always carefully read the contract and fully understand it before buying any home insurance policy to make sure you know what losses are covered by your insurance.
Protect your identity
A growing number of insurance companies now offer affordable insurance to cover the costs associated with identity theft. According to the J.D. Power and Associates 2006 Homeowners Insurance Study, identity theft is a number one concern among consumers and most want coverage in this area.
Seek an annual policy review
The value of your home changes with the market, and you will be acquiring personal possessions every year. These changes will have an impact on your home insurance policy; you should review your policy every year to ensure that it covers the current estimated cost to rebuild your home. Your current home insurance policy may no longer provide adequate coverage if you have remodeled, purchased expensive jewelry or artwork, or live in an area where home construction costs have risen.
Understand what Affects Home Insurance Policy Pricing
Some of the factors that can reduce your policy premium can include:
- Smoke Detectors
- Installation of a burglar alarm
- Purchase of multiple policies from the insurer – e.g: Rolling your home and auto insurance policies under one provider.
Make sure to compare a couple of homeowners insurance policies before making any big decisions. It’s always best to do your due diligence, so check out Home Insurance Quotes.
See how much you could save today on your home insurance. Get your free home insurance quotes today!
