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!