Home Insurance – What is it

Home Insurance – What is it, Why you need it, and Where to get it

It is said that our single largest economic asset is our home. Given all the amount of money that come with putting up or owning it, it’s reasonable to protect that investment with an insurance policy. In the event that your home or property is damaged or an accidental damage lawsuit caused by your property has been filed against you, your insurance will cover it and protect you financially.

Although it is not mandated by law, most mortgage lenders and tenant’s association will require you to have a homeowners insurance. If the house you’re renting is destroyed, the real owners or lender, which in most cases are banks, would shoulder the financial losses.

There are various policies available for renters and owners. Home insurance policies basically cover costs related to damage of the interior of the house, loss or damage of the personal belongings, personal liability for damage or injuries caused by you or your family, and hotel or house rental while your home is being rebuilt or repaired.

It is essential that homeowners understand the nuts and bolts of their home insurance.

There are the six types of homeowners insurance. HO-3 is the most popular as your home will be covered for almost every danger with its mixture of open perils and named perils policy. It covers your home and its contents, as well as the owner.

The other policies, HO-1 and HO-2 offer varying degrees of coverage. HO-1 cover 11 perils including fire or lightning, windstorm or hail, vandalism or malicious mischief, theft, damage, explosion riot or civil commotion, glass breakage, smoke, volcanic eruption, and personal liability. HO-2 covers falling objects, weight of snow and ice, freezing of plumbing and damage caused by faulty electrical and heating systems in addition to every peril listed in HO-1.

HO-4 and HO-6 are renter’s and condominium/co-op owners insurance, respectively. HO-4 covers the same perils as HO-2 and HO-3 plus personal injury or property damage incurred on others.

HO-5 is the premier homeowner policy as it covers the same as HO-3 plus more. It extends full protection to all personal belongings making it more expensive than HO-3.

Experts recommend that when you purchase your insurance policy, opt for the guaranteed replacement cost coverage and insure 100% of the value of your home and contents. The insurance company will pay whatever expenses incurred in replacing the insured house or items like it’s new, regardless of any depreciation before the damage occurred.

It is also suggested that you get a qualified appraiser to estimate the value of your home and that you keep a meticulous record of the value of your personal belongings. This will be valuable when you file a claim. It will prove that the company owes you what you are claiming.

Berkshire Hathaway and Travelers are among the largest US homeowner insurers. Both are tops in revenues and profits. State Farm is also among the largest and is leading in financial strength. To help you decide which reputable insurance provider to get, checking their reviews online may prove helpful.

Home insurance quotes can also be obtained online. The website onlinehomeinsurance.net conveniently provides multiple quotes from multiple insurers like Allstate, State Farm, etc. in one go. Make sure that you have all the information needed to complete insurance forms if you are scouting for the best quotes online. If you already have a policy and are thinking of changing or altering it, you may use this to compare price quotes and coverage types.

Policies can also be bought directly from the largest online insurance company, Esurance. The Esurance Homeowners Insurance Program promises to deliver top-quality coverage and round-the-clock service.

Make a careful study of the different insurance policies before investing in one. Insurance companies are in constant competition with each other so take advantage of this and be in the lookout for the best insurance quotes.

Filing a home insurance claim can be tricky so it’s important that you are also aware of your insurer’s claim process beforehand. Immediately after a disaster or an accident, contact your insurance company and inform them of the degree of the damages. You may document them through photographs and videos. Taking heed of these actions will make your insurance claim process move along more smoothly.

Getting a home insurance is a vital decision. It entails time and money. Doing sufficient studies of the firms and its policies will help you decide which protection you need in a reasonable and cost-effective price. Always choose the very best priced policy and at the same time meets your means. However, keep in mind that cheap does not equal best.