Everything Home Insurance

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Insurance companies are always attacked by people through frauds that they come up with, every now and then. Companies lose billions of dollars because of these fraudsters. Accidents happen, and injuries resulting from this situation is always the grounds for claiming benefits. Sometimes they are legitimate claims. The others are usually made up stories. Much like arson. This is one form of insurance fraud which is quite rampant in the United States and other European countries. Arson means setting your own property on fire. We might scoff at this stupidity. But believe me, a lot of people gain so much money from getting away with arson. Considering that Arson is a criminal offense and punishable by law. There are a number of reasons why people commit arson. They may be having financial difficulties paying the mortgage payments. Some resort to this because of marital disputes. Still, others are commit this because they are mentally ill. People will get into anything when desperation sets in. But ultimately, its for the money. But beware. Most arsons usually are caught because of the advances in technology. The next time you feel you want to burn your house, consider your future.

After Hurricanes Katrina and Rita, many homeowners learned, too late, the value of flood insurance. Flood insurance protects you from the financial devastation caused by floods, expenses that may cost you thousands of dollars in repair and restoration costs. However, most homeowners insurance does not cover floods. It’s a single peril insurance that is sold separately. Flood insurance protects against losses to buildings and their contents, not the land surrounding them. To be considered a flood, the waters must cover at least two acres or affect at least two properties. Flood insurance is sold and serviced by private insurers, and backed by the federal government. The good news is, flood insurance costs the same wherever you purchase it, because the rates are set by the National Flood Insurance Program. If you are located in a high-risk area, federally regulated or insured lenders will require you to have flood insurance for the amount remaining on your mortgage, or $250,000, whichever is lower.

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Getting the Best Quote on Home Insurance

Like many other forms of insurance, home
insurance can often be a financial burden. It’s not a legal requirement to have it, so some people cut out the bill by avoiding it altogether. However, this can be a risky strategy if you own the property you reside in, or if you have contents of substantial value. Just think if there was structural damage to your home and you had to pick up the bill, or if some of your prized possessions were stolen. Some form of home insurance should be thought of as a necessity, but there are plenty of ways to cut your costs.

Self Insurance
If you feel you’re unlikely to suffer problems with your property, possibly because you live in a very safe area, then you may want to consider self-insurance. With this method, instead of giving 25 dollars a month to an insurer, you simply put the money into a high interest savings account. Then, when you need to claim, just take the cash from the account to fit the bill. If nothing happens for years then you’ll still have the cash to spend. You can make it safer by saving in conjunction with a home insurance policy with a very high excess - such as over 2,000 dollars - then if anything major goes wrong you’ll still be covered.

Reduce the Risk
The more risk you present to an insurer, the higher your premium will be. In order to combat the higher costs, you should think about making your property as safe as possible. Fit locks on all windows and doors and ensure they stay locked when you’re out. Also, installing a burglar alarm is a very cost effective way to lower premiums. Notifying insurers about extra steps you take, such as owning a home safe, can also help reduce your costs. Don’t be afraid to phone an insurer to tell them about these if you have them.

A credit-based “insurance score” from a consumer’s credit statement is used to predict how frequently he or she is possible to file claims and how pricey those claims will be. It signify that studies by insurance regulators, universities, auditors and insurance all have shown that an individual’s credit record is a strong sign of how likely that person is to file a future claim.

Below are basic facts about credit-based insurance scores according to studies
• It allows insurers to charge lower premiums to customers who are better risks.
• These kind of scores are completely and totally objective
• It creates more choice for consumers.

Home insurance is your security in event of damage to property, as well as liability for damage and injuries caused to other people. Knowing what home insurance is and the basics will help you to make the correct choices that will protect you and your family.

Aside from knowing what home insurance is, some of the things you have to be familiar with are:
1.What is included in a standard home insurance policy?
2.Are there different types of policy coverage?
3.What insurance types are needed for co-op or condo?
4.Is flooding covered?
5.What specific disasters are insured?
6.Is home insurance mandatory?
7.What is the importance of home inventory and how is it done?
8.Can I have home insurance if I am only renting?
9.What is cancellation and non-renewal?

by: Christine Zafra

If you think those are living in mobile homes cannot qualify for an insurance, you’re wrong. The seventh type of policy, the HO-7, are catered especially for them. If mobile home owners had their homes burglared, they can file for a claim for those things that have been reported missing (if it is covered by the insurance policy).

Also, another type of policy exists called HO-8. The HO-8 is made for those who have homes that are aged (the policy is also known as “older home” insurance). Since older homes have higher replacement costs, this insurance will help them get a lower market value rate compared to the normal high ones.

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by: Christine Zafra

The HO-6 policy is akin to HO-4 except for the fact that HO-6 covers those who dwell in condominiums. This policy is dual in nature, covering the property where the condominium or building is located, and the unit of the house inside the building (where you reside). This coverage is said to supplement what the blanket policy cannot cover. Again, depending on the type of premium, some policies allow up to 150 feet of coverage from the domicile and it covers a wide variety of damage causes such as the most common theft, fire, water and so on and so forth. It is important to read the bylaws of your condo before subscribing to any insurance type.

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by: Christine Zafra

If the policies HO-1, HO-2, HO-3 and HO-5 all cover the houses with their owners living inside, HO-4 covers the renters. Every apartment for rent has a blanket policy (a policy that covers things in clusters like the “living room” of an apartment compared to the “sofa” in the living room); however, there are some things inside the apartment that are not covered by these policies and so, HO-4 catches all the responsibility of covering these. Accidents and mishaps that may happen within 150 feet of the home are covered by this (depending on the policy, the feet covered may vary). Also, damage causes include common incidents such as windstorm, theft, vandalism, falling objects (trees) to uncommon ones such as lightning, volcanic eruption, aircraft, riot etc.

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by: Christine Zafra

HO-3 on the other hand covers the entirety of the insured house. It is the most common policy insurance companies normally offer to their customers. It covers the infrastructure itself (the house) and the contents (things) found inside it from a number of liabilities caused by you or anyone else. In layman’s terms, whatever things you or anyone else destroys within your property, as long as the cause of destruction is covered by the policy (i.e. if your garage was set to fire and “fire” is included in your policy), then you can file for a claim. HO-5 is similar to HO-3 but their difference lies on the fact that HO-5 covers a broader liability cause than the HO-3.

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by: Christine Zafra

The HO-2 is somewhat similar with the HO-1 type of policy, however, the difference lies with the “object” that is insured. If HO-1 deals with movable valuable things such as paintings and vases, HO-2 on the other hand insures part of the house. If your swimming pool, say has been hit by a falling tree when a hurricane of tornado hit your state, you can file a claim if your swimming pool is insured. How about your garage? If it caught a fire (hopefully your car’s somewhere), you can also file a claim if your garage is insured. These are only a few of the benefits you’ll get with HO-2.

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