| A major investment for families and most people is the | | | | Cover and choices |
| purchase of a house. Life’s savings or major | | | | Getting the appropriate cover and finding the right |
| loans go into this investment and protecting that asset | | | | insurance type is possible if you prepare a home |
| is a necessity. Home insurance coverage is one | | | | insurance checklist and compare quotes to identify the |
| means of protecting your home. Choose a home | | | | policy good for you. |
| insurance policy from the several available policies in | | | | • Most homeowner’s insurance policies are |
| the market. Getting the right home owners insurance is | | | | due to mortgage lenders requiring you to take a |
| difficult. Most standard home insurance policies provide | | | | minimum amount of homeowners insurance. This |
| coverage for damage to your home and items in your | | | | minimum amount is usually an appraisal of the present |
| house. | | | | value of the house. It is not the minimum cover that |
| Cover is provided if damage occurs due to Fire, | | | | you should look at. You could consider purchasing |
| lightning, smoke, frozen pipes, Snow, Ice, and theft. The | | | | replacement cost coverage so that your damaged |
| most common liability cover is around $100,000. You | | | | property could be replaced. You could also consider |
| may need much more and some policies cover for | | | | finding out the cost of rebuilding your house and |
| medical payments and liability claim to their parties as | | | | insuring it for that amount rather than the usual cover. |
| well. You need to take note of valuable and other | | | | • Insurers value your property differently. One |
| items that will not be covered by your home insurance | | | | method is they give you a replacement value minus |
| policy. Diamond, priceless artwork and other valuable | | | | the depreciation for the years you own the item. The |
| are not covered under house insurance policy. There | | | | next method is replacement costs which pays you the |
| are special insurance types that cover these valuables. | | | | present cost of the item if it were to be purchase |
| Are Calamities included? | | | | today, so that you can replace the old one with the |
| There are many reasons cited not to include calamities | | | | new one. If the second method is used the home |
| into home insurance. But the fact remains that | | | | insurance is costlier. |
| calamities are major incidents and it is not profitable for | | | | • Choosing a larger deductible will require you to |
| the insurance company to include these in the policies | | | | pay this amount out of your pocket in the event of a |
| or else they will have to settle claims for everyone | | | | loss. This will save on premium charges. |
| which may result in them going bankrupt. However | | | | • Premium is also lesser if you have a safety |
| these are offered under special endorsements. | | | | system with fire alarm or fire resistant materials or |
| • Some home insurance policies exclude natural | | | | even a fire hydrant close to your home. |
| calamities. So do not be surprised if a flood or | | | | • Premium is less if you have a home security |
| earthquake is not there in your policy statement. You | | | | system installed to prevent burglaries and alert you in |
| need to get additional or separate cover for these | | | | times of emergency. |
| events. Check with your policy to see that in the event | | | | • Premiums will be still lesser if you get your other |
| of a calamity whether only the home is insured or | | | | insurance needs by the same company. (For example: |
| even the house hold articles are insured. | | | | auto insurance) |
| • Calamities caused by humans are also excluded. | | | | • Lowest premiums are not always the best deals, |
| Terrorism, damages caused by an act of war, nuclear | | | | Cover and other factors make the premium rates. |
| accident is not covered under most home insurance | | | | Check with your state department to evaluate your |
| policies. | | | | insurance company and the policy offer. |