Compare, Buy and Save!
Buying your dream
home is one of the single, largest investments that you would
have to ever make.
You would need to protect that investment, therefore, your main
strategy of
defense is homeowners insurance.
Many standard
homeowners insurance policies will provide coverage for damage to
your home and
items in your home caused by:
1. Theft
2. Fire and
lightening
3.
Smoke
4. Ice and snow
5. Frozen
pipes
Homeowners insurance includes coverage for liability claims, medical payments to
third parties and legal costs if a lawsuit is brought against you. The most
common
amount of liability coverage included in a homeowners policy is $100,000,
but
depending on your circumstances, you may need much more.
What's not
covered
It's
important that you read your homeowners insurance policies to find out what is
not covered. Damages caused by nuclear accident, act of war, flood, earthquake
and
terrorism are not included in most insurers. You would be able to buy
special
policies or endorsements that will cover these events. For high-priced
items such as,
diamond rings, watches, antiques and other valuables, additional
endorsements are
needed. It's best that you find out the cost to rebuild your
home and consider
insuring your home for that amount.
There are
two methods insurers used to value your property.
1. The
actual cash value pays you an amount which is equivalent to the
replacement
value of the property. This does not include depreciation for
the years you
owned the house.
2. Replacement cost, which is more expensive, but it pays you the full value
of
the house at
today's value
Say the facts
You may
be qualified for lower insurance premiums under certain conditions.
Inform your
insurance company if:
1. Your
house is new
2. It is near a fire department or hydrant
3. Your house is built out of fire-resistant materials
4. Or if you get your auto insurance from the same company
