Homeowners Insurance
Homeowners Insurance protects against lawsuits for negligence and
injury and protects home and personal property against damage and loss.
Most standard homeowners insurance policies will provide coverage
for damage to your home (and many of the items in your home) caused by:
Theft
Fire and lightning
Smoke
Frozen pipes
Ice and snow
Homeowners insurance also provides coverage for liability claims,
medical payments to third parties, and legal costs if a lawsuit is
brought against you. The most common amount of liability coverage
included in a homeowners policy is $100,000, but you may need much more,
depending on your circumstances.
Read your homeowners insurance policy to find out exactly what is
and is not covered. Do this before you suffer a loss, so you won't
be surprised. Most insurers exclude damages caused by an act
of war, nuclear accident, flood, earthquake, and terrorism,
although you may be able to purchase special policies or
endorsements that will cover these events.
Mortgage lenders require that borrowers purchase a minimum
amount of homeowners insurance (typically equal to the appraised
value or the purchase price of the home). But this is often not
the amount of coverage you truly need. Instead, find out how much
it would cost to rebuild your home, and consider insuring it for
that amount.
Get quotes from several insurance companies when shopping for
homeowners insurance. But remember, the lowest price does not
always equal the best deal. Compare the coverage each policy offers,
and check with your state's department of insurance to make sure
that each company you're evaluating has a good reputation in the
industry.
Issues affecting the insurance premium:
Age and condition of the home
Security Features (ie: monitored security system, gated community, etc.)
Type and frequency of previous losses or claims on previous property policies
Prior cancellations or non-renewal of previous policies
Using the same provider for various types of insurance may result in a discount
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