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