Things to discover in this report:
How your home might not be fully rebuilt – even with your home insurance!
11 ways to you can save money on your home insurance – these include how to catch your insurer automatically increasing your every year.
SIX primary types of insurance in your home policy? Exactly the right decision for each one.
The secret to brushing off a case.
Your personal belongings and your jewelry are not covered and decision to make about it.
Again, why what’s not covered more important than what is covered…
And lots more! You know your home is your most valued asset. It’s financially a big risk for you. What if something happens to it? Vandalism? A fire? A flood? Are you really sure the insurance company will pay for the damage? Will they pay for ALL of the damage?
Another, what if someone pays you a visit then reaching your house slips and fall and have injury? And sues you? An accident can happen like that which could put a loss—or more—in your financial security.
For some people, insurance is like mystery. For some people they don’t understand the protection provided by the policy, all they know is that they need to have insurance for their homes (mortgage lenders require it). They don’t even know what their policy cover and what it does not.
All homeowners insurance is not made the same. In short, almost none of it is. There many products out there, from about hundreds of insurance companies. And your product includes dozens of options and decisions you have to make that can tell how much insurance security you actually have. Your home policy is not valuable. It’s something designed to your desire and needs.
Six Primary Coverage’s Provided By Your Home Policy
Home policy normally protects you in six ways. You’ll find these earlier listed above. Here is what they mean.
Dwelling, in your home policy mean your Home itself. It includes attached structures, like an attached garage. The amount of insurance declared on your declaration page stands for the most the insurance company will pay to replace your home if it’s ever destroyed by a cover claim. I believe it’s enough or isn’t it? Warning: don’t ever make a mistake of thinking that your house is fully covered because you have insurance policy. Make sure that your dwelling limit is enough to rebuild your home. How?
You may visit our office and one of our agents will run a replacement cost estimate that solves the cost to rebuild your home. Always be sure to adjust the amount of insurance to replace your home if anything happens.
NB: Other policies include built-in protection higher than the stated Dwelling Limit—in case of too low estimate. Just be sure to relate this with us as an extra protection feature. It’s definitely worth having.
Some other structures are sheds, barns, pool houses, stand-alone garages (known as “detached” garages in insurance terms), etc. there are not attached to your home directly, the “dwelling”.
Other Structures have their own protection limit – the most your company will pay to rebuild them – as stated on your Declarations page. This limit will be significantly less than the dwelling limit … usually 10% – 20% of the dwelling For people that have a lot of insurance for other structures, but not everyone. You need to amount it will cost to rebuild or replace those structures if they are destroyed. Our licensed professionals are waiting for discussions with you in our office. If you need other structures protection, you can buy more.
Your personal property is all your stuff – appliances, clothing, electronics, furniture, etc. it also has its protection limit stated on your declarations page. Again, this amount is the most; your personal property will pay to be replaced by the insurance company.
70% – 75% of your dwelling limit is usually your personal property limit. However, if you need more protection, you can always adjust this upwards. You are to discuss your options with us, we’re always here to help.
Despite of the protection limit for your personal property, there’s an important question which you need have answer..How is your being protected… on a replacement cost basis or an Actual cash value basis? The difference is high.
In every necessary term, the insurance company will replace your stuff with new ones, if your property is protected on a replacement cost basis. Example, if your old TV is spoilt in a protected claim, the company will have to pay for a brand new TV. And you know what, it’s a good deal.
While, if your property is protected on actual cash value basis, an Allowance of depreciation is applied to the cost of a new TV at the time it was destroyed. The result is you get a settlement amount less than the price of a new one as the case may be. Therefore to buy a new TV, you have to add money from your pocket. This does not make it a better deal.
As we have seen clearly, insuring your personal belongings on a on a replacement cost basis is better than actual cash value. It might cost more sometimes, but not every time. You have to always check the price both ways and know how it works. We make the right decision for you.
Loss of Use
You be able to live in house if its badly damage when fixing it or being replaced. You will have to look for a place and stay somewhere while you’re also paying your mortgage. Some additional expenses are being pay for you through the loss of use coverage on your home policy.
Time limit or dollar limit for this coverage may be stated on your Declarations page. If it is a time limit, your will pay all covered expenses regardless its cost but only in a durable time as agreed. While the Declaration page for a dollar limit for this coverage, this I the most limit the insurance company will pay for these expenses.
Your liability coverage comes in if someone sues you for their injuries due to enclosed claim. When such accident are being look into, what will be look into is the injuries that occur on your property – a dog bite, some slips and falls, etc. however, the liability protection has gone beyond your property to your everyday life. Example, if you knock someone down over with a shopping cart at the super market, your home policy could also protect you.
Liability insurances are they to protect your assets from someone who sued you. I advise you to have as much liability insurance as your financial worth. Moreover, may be prudent, so you ought to discuss your needs and risks with a licensed agent in our office. Your declaration page will state your current liability limit.
Medical Payments to Others
This will pay the medical bills for guest who got injured on your property or in another enclosed claim. The idea is good, so that the right thing to be done for someone. You pay their bills so that they don’t sue you. This will save you major troubles by preventing a case, although this protection is quite expensive.
It’s What’s NOT Covered That Will Hurt You
Just imagine your home in disaster; and you had to report it to your insurance agent. And they said that’s not covered by your policy. Now, you really have a big problem.
The fact is that no insurance policy covers you for everything that could possibly happens to you or your property. So, you can have the protection you want if you have a little understanding and also make sure your claims get paid by the insurance company if it’s being covered by your policy.
Beware: It’s Not Always Covered
Having insurance does not mean that your home is covered for everything. Your home policy does not protect you from every cause of loss. What’s that? High wind are cause of loss, fire Is a cause of loss. There are called Perils in insurance terminology.
A standard home does not include many causes of loss. That is it does not protect you from certain damage like flood and surface water, earthquake, termite damage and many more. That means if your home is damage by the above mentioned excluded perils your policy will not be respond. There is no insurance against them.
If you truly want to have insurance against some of these perils, you can purchase them. Like earthquake or flood could be bought while perils like insect damage cannot be bought. When you are in our office to buy the protection you want feel free to discuss your policy exclusions with an agent in our office. I will ask to go do your protection before it will be too late when damage comes.
Special Limits On Personal Property
Your home policy includes Special limit which reduces the protection specifically available for certain types of property.
Property subject to a special limit typically includes; are property used for business— cash & coin collections, guns, jewelry & furs, silverware and more.
Additionally, these special limit apply only is the property is stolen or lost, making things a little confusing.
Example, the standard home policy includes only $1,000 of protection for stolen jewelry. You will get only $1,000 from the insurance company if your $2,500 diamond engagement ring is stolen. And if the stone fell off the ring and get lost, there will be no coverage.
The end line is really important that you discuss fully these conditions and special limit with your agent and buy the very protection you need. In other case, you could find yourself with a very dangerous surprise an also unpaid claim.
Conducting Business At Home
Attention!!! Home policy has very strict limits and rules about business which are conducted at home. The security given by your policy is strictly limited if you should arise from business activities. You may have no liability protection at all in some case.
And this is not what you take for granted and assume everything will be fine. Please ensure to discuss your business with a licensed agent in our office to be in a safer side.
Other Exclusions and Options
Protections for so many things are restricted from The standard home policy. Yet you still have opportunity to buy some back through the insurance company.
Again, you have opportunity to increase protection where you personal want one.
Much optional coverage is available in your home policy. Here are some explain common options available to you.
Identity Theft: some home insurers presently give protection for theft identity in their home policies. It helps in paying the expenses to get to restore your identity if stolen.
Water & Sewage Backup: you are free to buy this protection if you want it. Reason, that the standard home policy does not include damages which are caused by water or sewage system backup.
Ordinance & Law: these pay the additional costs of fixing or rebuilding your home which are result of change in local building codes. Example, your home has just one paned window. After your loss, double-paned windows was required at the local building. This endorsement was paid for the increased cost which is required by the new building.
Packaged Endorsements: many times the insurance company will package the optional coverage’s people often buy into a single endorsement. It means you can get several optional coverages added to your policy for a lower cost.
There are a lot of more optional coverage and exclusion buy-backs which your agent has to explain to you. You have to take some times to understand them and make reasonable decisions about your protection.