Auto and Home Insurance

 

Home Insurance

The reasons for getting home insurance are endless, but they all come down to one thing –money. Think of all the zeros on that sale price. Think of the percentage points you’re shelling out in interest payments on that mortgage every month. Now imagine all of that money slipping away from you without so much as a roof over your head to show for it. If your property sustains significant damage and you didn’t have it properly insured, you could end up owing hundreds of thousands of dollars for a property that isn’t worth half the price!

 

Did you know that in 2006, property damage and theft claims accounted for 81 % of all home insurance claims payments. Liability claims accounted for only 5 %.  Each year roughly 7 percent of insured homes suffer damage that results in a claim

The 10 Most Expensive States For Home Insurance are:

Texas, Louisiana, Florida, Oklahoma, D.C., Mississippi, California, Rhode Island, Alabama, and New York

The 10 Least Expensive States For Home Insurance are:

Idaho, Utah, Oregon, Wisconsin, Delaware, Ohio, Maine, Washington, Iowa, New Mexico

Leading Writers Of Home Insurance
by direct premiums (2006) are:

State Farm Mutual Group
Allstate Insurance Group
Zurich Insurance Group
Nationwide Group
Travelers Group
USAA Group
Liberty Mutual Insurance Group
Chubb & Son Group
American Family Insurance Group
Hartford Fire & Casualty Group

 

Home Insurance Coverage?

The most common type of Home Insurance in the United States is called the Special Form or HO 3.  

What Does it Cover?

1. Liability: The standard amount is $100,000.

2. Standard Home Insurance provides broad coverage for a large number of perils, including:
  • Fire

  • Lightning

  • Tornadoes

  • Wind Storms

  • Hail

  • Explosions

  • Storms

  • Vandalism

  • Theft


3. Covers your personal property no matter where it is on your property, including in your vehicle. Note that it doesn't cover replacement cost, only current value.

What Does it NOT Cover?

1. While not specifically included, earthquake coverage is sold as additional coverage to a standard home insurance policy. In some areas, this additional coverage is mandatory.

2. Water seepage is NOT included under a Special Form home insurance policy. Also, if the water damage is not due to a flood you will not be covered under a flood policy. Often, problems like water damage are viewed as maintenance issues and not covered by insurance.



How much Home Insurance Coverage do you Need?

You need to insure your house not the land! You'll want enough coverage so you can rebuild your property (dwelling). To estimate the actual  cost of rebuilding your home request an appraisel from a licensed real estate appraiser or use this online tool:

http://www.rsmeans.com/calculator/index.asp
 

Tips to Reduce your Home Insurance Premium

Many companies give a premium reduction if you install a smokedetector, burglar alarm, dead bolt locks and fire extinguishers.

Discounts may also be obtained if you purchase other policies through the same company.

Today, an informed consumer can obtain more value for his or her insurance dollar. Prices for nearly identical home insurance coverage vary greatly among companies.

Our advice: shop and compare quotes!

 

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