Archive for the ‘Home Insurance Policy’ Category

Know the Property Coverage of Your Home Insurance

Tuesday, April 28th, 2009

Whether you purchase your home insurance from your long-time insurance agent or you want to look for more attractively-priced insurance products online from other insurance companies, it is essential that you know what a home insurance policy really is and what things are covered.

Basically, a home insurance policy is a tool you use to manage risks or perils in life, specifically perils that damage parts of your house or completely destroy your house, such as fire, water or storms. When you receive your homeowners insurance policy documents, you will see the amount of coverage, the deductible amount, the perils that are covered and the exclusions from coverage.

It is always a good practice to go over your homeowner’s insurance policy documents and read all the pages. You might discover something that contradicts what you have been assuming. Examining your policy and seeing all the coverages that you required and expected will give you peace of mind.

A typical home insurance policy includes two parts: the property coverage and the liability coverage. Property refers to your house and its contents while liability refers to your liability for accidents that could occur within your property. The property coverage is further divided into sections namely, main dwelling, other structures, personal property and loss of use.

Dwelling refers to your main house, extensions, built-in appliances and all your utility systems. Other structures refer to structures within your land property but detached from your main house such as storage facilities, garages, fences, driveways and retaining walls.

Personal property refers to personal things owned by you and your family members, such as jewelry, art objects and furniture. Remember however that these items have limited coverages, so you need to obtain additional coverages if you are not satisfied with the amounts assigned to certain personal belongings.

The loss of use provision will pay for part of your living expenses when you stay in a hotel or another accommodation while home repairs are being undertaken.

The deductible is the amount you bear or the amount deducted from the home insurance proceeds when you make a claim.

Another part of your house insurance policy that you need to check is the exclusions portion. This is where your homeowners insurance company lists the things it does not cover, the limitations of coverage amounts and the conditions when your insurance company is not legally liable to pay your insurance claims.

If you have other precious belongings that you need to cover or if you feel you need to cover against inflation, you can always contact your insurance firm for additional endorsements to your home insurance policy.

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Things You Should Know About Home Insurance Policies

Tuesday, April 7th, 2009

In this time of recession, home insurance is the farthest thing in your mind to buy. You would rather set aside the extra money that you have for emergencies. But what if your house were robbed or burned down in a fire and you lost everything, every single appliance and other valuable things.

You have the money to replace some of the things destroyed but not enough to replace all the items.

Home insurance offers financial protection to you if your house or the contents in them were damaged or destroyed. A home insurance company will pay to enable you to rebuild your home, replace your properties or cover the cost of moving home.

When buying an insurance for home, you should know the two subcategories of home insurance policy in terms of covered risk. They are all peril and peril home insurance policies.
All peril home insurance policy does not specify risks covered but includes everything else.

On the other hand, buy home insurance peril if you want a policy that specifies risks covered and leaves out everything else.

Home insurance companies offer various policies that to find home insurance that will give you the best protection can be a challenge.

Here are types of home insurance policies and home insurance coverage:

  • HO-1 or the basic home insurance policy. Its protection covers fire, windstorm, explosion, riot, lightning, vandalism, smoke, damages caused by aircraft and vehicles, theft and volcanic eruptions. This is an uncommon type of home insurance coverage.
  • Broader policy of HO-2. It covers risks such as falling objects, leaks from plumbing, air-conditioning, fire-sprinkler systems and heating, weight of ice, sleet or snow, bursting, cracking or freezing of air-conditioning, fire-sprinkler systems and plumbing and accidental and sudden damage to appliances or fixtures caused by electrical discharges.
  • HO-3 all-peril policy. This is the most common home owner insurance policy and covers all risks, excluding those specifically stated in the contract such as damages caused by an earthquake, flood, nuclear accident, war, landslide, sinkholes and mudslide. Some home insurance companies limit or exclude coverage for mold.

In terms of home insurance claims or reimbursement of loss, there are two types available, replacement cost coverage and actual cash value.

The actual cash value covers only the face value and actual amount of the home and its contents.

On the other hand, replacement cost coverage does not include the item by item replacement of the home structure and its contents.

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How to Do a Home Inventory for Your Home Insurance Policy

Monday, March 2nd, 2009

Everyone wants to maximize their home insurance policy. Just how do you do that? First, you have to know that your home insurance policy does not only cover the house itself, but also your personal properties in it. In case of fire, flood or other disasters, your home insurance policy can replace your lost or damaged properties.

With that, you have to know that keeping an inventory of all your personal properties in your home is very important when you are filing for a home insurance claim. It is a clear proof of all your properties that need to be ensured. This includes items that have relatively high value, such as appliances and furniture. Usually, a home inventory also includes photos of the items. So how do you make an inventory? Here are some tips to help you.

  1. Categorize your properties. Listing every single piece of clothing you have will take too much of your time and effort, not to mention your insurance company’s too. It is best to just put an estimate value to all your clothing and other similar items such as jewelry.
  2. Create your home inventory right away. You will never know when disaster will strike your property, so it is best to have your inventory ready, to have proof that you have actually acquired the items in your house. As you buy more properties, you can immediately add them to your inventory so that you will not miss any important thing and also so that you will not have a difficult time rebuilding and updating your inventory. When it’s time to file a home insurance claim on your property, you will not have worries.
  3. Aside from categorizing items, you can also group them room by room. Aside from creating a more organized inventory, making your list in such a way also systematizes your inventory method. It will make you task easier. To further strengthen the details of the items in your inventory, you can also take note of the manufacturer and serial number of items that have such details. This will help hasten the approval of your home insurance claim.
  4. Keep the receipts of your properties. These are strong proofs when you are filing a home insurance claim.
  5. Take photos of your properties. Keeping a good documentation of your properties will make it easier to get your home insurance claim, in case something happens. It is up to you how you want to store the photos. Keeping a digital file of your properties, as well as printing out a hard copy will ensure that you have a safe and secure documentation of all your properties.
  6. If you have the equipment, videotape your inventory list. A fast way to create an inventory is to walk through your house and speak about the properties in it while recording it on videotape. Afterwards, you can watch the videotape and write down all the properties you mentioned. Your video will also work as a good documentation when filing for a home insurance claim.

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Your Home Insurance Coverage

Friday, January 23rd, 2009

The standard Homeowner-3 insurance policy or HO-3 generally includes natural disasters: Fire Hail Lightning Vandalism Hurricanes/storms Explosions Tornadoes Theft (man-made) But not: Floods Earthquakes Break-ins If you are not definite of what your home insurance includes, have a chat with your home insurance agent. Bring up the idea of increasing the coverage of your insurance […]

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Keep Your Vacant Homes Occupied to Prevent Home Insurance Expiration

Friday, January 16th, 2009

The U.S. Census Bureau has reported that there were already 18.6 millions empty homes in the country during quarter one of 2008. Most were attributed to abandoned homes by families failing to make monthly payments, while over a million has been foreclosed or repossessed by banks or lending institutions. The rest are from still unoccupied […]

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Check if Your Home Insurance Is Adequate

Friday, January 9th, 2009

Was your home insurance purchased when you took out a mortgage loan? Then probably it is a standard home insurance. This means your policy covers only the basic risks to your home. It is time then to take a look at your policy and check if it covers all risks prevalent in your state. There […]

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Are Your Valuables Protected by Your Home Insurance?

Tuesday, January 6th, 2009

If you check your homeowners insurance, the personal items typically covered are: furniture appliances jewelry coins collectibles If you have more valuable possessions in your home, consider obtaining home contents insurance or the specialized home insurance policy called personal article insurance floater. Among treasures covered jewelry collections rare collectibles wines antiques small sculptures postage stamps […]

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Check Your Home Insurance Policies for Flood Risk Coverage

Monday, December 22nd, 2008

While inclusion of floods in home insurance coverage is mandated for properties located in flood-prone areas, regular home insurance policies do not include natural disasters such as floods in the risk coverage. However, the National Flood Insurance Program (NFIP) reports that a fourth of flood insurance claims were made by homeowners coming from low-to-moderate flood […]

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Save on Winter Repairs with the Help of Home Insurance

Friday, December 12th, 2008

Preparing for winter is best done a few weeks before the season gets underway. Winter preparation checklist includes winter clothes, fireplace, hot chocolate, and one more thing – house repairs. The cold season usually takes its toll on homes. Hence, it is wise to do some minor renovations ahead of time so as to enjoy […]

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