Tips On Gettting Your Home Insurance Right

by Jason Hulott

There are many different types of packages when it comes to home insurance and it can be difficult to choose which type of cover and package to go for. Insurance can cover fire, theft and even liability, however there are many exclusions within policies and you should make sure that you read the small print. To help you here are some tips to get you started.

Make sure that you correctly value the contents of your home. If you are going for a new for old policy then make sure that you value your items at the price it would cost you to buy those items now, not how much you paid for them when you bought them.

If you have expensive items such as computer equipment, mountain bikes or family heirlooms then these won’t usually be included in the cover so don’t automatically think that they are, these will have to be added on as extras to your policy.

You can get cheaper insurance by making sure that your home is secure. Installing mortise locks and deadlocks can cut down the cost of your premiums as can installing security lighting around the outside of your home. It is worthwhile checking the small print of your policy because some policies state that these have to be in place and if not then your claim might not be paid.

Make sure that you keep written documentation of the value of the items in your home and whenever you make new purchases add them to the list to keep it up to date. It can be surprising how things mount up if you don’t care and you could soon find you have greatly underestimated the value of your possessions.

When looking to purchase your policy you should always shop around for the best deal. When it comes to buying insurance you can get the cheapest premiums online.

A Typical Homeowners Insurance Policy

by Robert Michael

A typical homeowners insurance policy has four key ingredients. They are:

1. Homeowner insurance coverage for your home itself
2. Homeowner insurance coverage for your family's personal items
3. Homeowner liability coverage
4. Coverage for the expenses of temporary living should you have to vacate your home because of fire, flood or other disaster covered by your homeowner policy.

The portion of the homeowner coverage for your home itself provides funds for the repair or reconstruction of your home if it has been damaged or destroyed by disaster such as hurricane, hail, lightning, fire or any other covered event. What is not covered with a standard homeowner policy is normal wear and tear on your home or damage caused by an earthquake or flood. (There are homeowner policies that cover these, but they are more costly and in some regions, such as flood prone areas they are not available at all.)

When you take our your homeowner policy you'll want to be sure and buy enough coverage for total reconstruction of your home

Most standard homeowner policies also protect structures on your property although detached from your home, such as in-law quarters, garage or gazebo. It's common practice to cover these unattached structures for ten percent of the covered value of your house.

Should any of your clothing, electronic equipment, furnishings, or other personal belongings be destroyed by insured disaster, or stolen, they are covered by your homeowner policy. Most carriers cover them at the rate of 50-70 percent of the total dollar figure of your home structure's coverage.

There is also a clause in your homeowner policy for coverage of off-premises items. Which means that if you take your personal belongings elsewhere and they become lost or damaged your homeowner policy will generally reimburse you at least ten percent of the amount of coverage that you have on them when they are on your home premises. Homeowner policies also provide up to $500 of protection against unauthorized credit card use as well.

For high priced items like jewelry and fur a standard homeowner policy will usually limit your coverage to $100-$2000. You can purchase coverage up to appraised value for an additional charge. In either case there is no deductible and coverage includes your accidental loss of the items.

Foliage around your home such as trees and shrubs also come under the protection of your homeowner policy. Usually the money figure is five percent of the home's insured value, but up to $500 for each bloom. They are protected against even riots, vandalism, explosion and airplane crashes. They are not insured against wind or disease damage.

Liability coverage protects you against litigation should anyone or anything become injured on your premises. You are also covered for damage done by your children or pets to the property of others as well. This coverage is in force even if you are not in your own home or on your own property. It covers any court defense as well as any court appointed financial award against you. The coverage limit is generally more than $100,000, although a $300,000 minimum is a standard recommendation.

Your homeowner policy also takes care of living expenses if you temporarily have to vacate your home because of damage and during repair and reconstruction of your home. Coverage includes hotel costs, meals in restaurants and other common expenses. Coverage limit of 20 percent of your home's insured value is common for this. If part of your home served as rental property your homeowner policy will also reimburse you the amount of the rent that you are losing because of the disaster.