Homeowners Insurance Tips »

Following are a few Homeowners Insurance tips for your review. To create your quiz camel quiz, simply take the ideas you like and then click here to quiz your friends about Homeowners Insurance.

Homeowners Insurance

Homeowners insurance policies are designed to provide financial protection to your home incase of any disaster such as earthquake, fire, floods and poor maintenance. In fact, a homeowner policy is said to be a package policy in the sense that not only does it provide insurance cover to any damage caused to your home but it also covers your liability in case of any injuries or damage caused by you, the members of your family and your pets. However, in case of disasters like earthquakes and floods, you need to have a separate policy. A standard homeowner policy covers four major areas. These include structure of the home, personal belongings, liability protection, and additional expenses. The additional expenses refer to the ones that you may have incur when you are temporarily unable to live in your house because of damages caused by disasters such as fire, or any other insured disaster.

Structural Cover

The policy covers repairs that may be required because of disasters such as fires, storms, hurricanes, lightening or any other disaster coverage mentioned in your policy. As said before, the policy will not cover damages caused by earthquake and floods. You need to buy a separate policy to cover them.

Personal Belongings

A standard homeowner policy should cover your personal belongings such as furniture, clothes, sports and entertainment equipment that is either damaged because of a fire or a hurricane or has been stolen. You can also opt for off-premises coverage. This means you can obtain coverage for your belongings that are not physically present in the home such as jewelry put away in the bank. In fact, you can also have coverage for your plants and shrubs if damage is caused by fire, vandalism and riots.

Liability

This part of the policy covers you against lawsuits that may result if you or your family members are responsible for bodily injury or property damage of another person.

What is homeowners insurance?

Many people who rent don't carry renter's insurance on their property. They feel as if they don't need it or they are unaware of it.

Owning a home is a different matter. You now have things worth insuring. Without it, you could lose your home and still be liable for a mortgage. With it, if you lose your home, you have protection that ensures your home will be rebuilt.

Anyway, banks require that you carry hazard insurance. Most homeowners' policies go further, adding protection against additional problems, such as theft of personal property and liability coverage for injuries on the property.

The basic form of homeowners insurance is known as HO-1. This policy provides you with coverage against damage by aircraft, vehicles, smoke, vandalism, malicious mischief and theft. It also provides liability for injuries to others on your property.

Broad coverage is known as HO-2. This includes the above coverage, adding the hazards of falling objects, weight of ice, snow and sleet, freezing and other single occurrences in heating, plumbing, electrical and air-conditioning systems.

Comprehensive coverage, HO-3 or HO-5, gives you coverage against all hazards except flood, earthquake, war and nuclear attack. Other policies include the HO-4 for apartment renters and HO-6 for condo owners.

In each policy, personal property is protected in a certain ration to the coverage purchased for the building itself. For example, if your home is insured for $110,000, your personal property insurance may be preset at $76,000. If you find you need additional coverage for your personal property it is easily and inexpensively purchased.

Just like auto insurance, the higher your deductible, the lower your premiums. Also, your insurance will remain lower if you hold back from bothering the insurance company about minor problems. Save it for when you really need it.

Click Here to Create fun quizzes on Homeowners Insurance »