2co com essay divison essay how to write an essay keywords professional paraphrase essay how to write master proposal for thesis exercises in critical thinking do my chemistry homework buy research paper

New Home Owner? 5 Common Questions (And Answers) About Home Insurance

Written by  //  2015/03/06  //  Home Insurance  //  No comments

Among the many questions new home owners often have is about how their homeowner’s insurance works and what it covers. Here are five common questions and answers about homeowner’s insurance.

What does homeowner’s insurance cover?

Homeowner’s insurance covers damage to your home caused by wind, hail and fire. Most policies also cover damage caused by theft or vandalism. Homeowner’s insurance will pay to repair or replace structural damage or loss as well as loss or damage up to the limits in the policy. Homeowner’s insurance also offers personal liability coverage for things such as dog bites or injuries people sustain while on your property.

What does homeowner’s insurance not cover?

Homeowner’s policies do not cover damage from flooding, unless the flood is caused by a burst pipe in your home or from water that got into your home from storm damage, such as a hole in the roof. Most homeowner’s policies also don’t cover damage from earthquakes, plane crashes and acts of war.

How much insurance do you need?

At a minimum, you need enough insurance to cover the appraised value of your home. But it is better to get a policy that covers the replacement value of your home, which is what it would cost to build a similar home today. You should also have a policy that automatically increases your replacement value coverage annually to keep up with inflation.

How can you lower premiums?

Many of the factors that go into setting your homeowner’s insurance premiums are things you can’t control: how much the home is worth, where it’s located, the history of claims on the property. But there are some things you can do to lower your premiums. Carrying a higher deductible, meaning you will pay more out of pocket when you file a claim, will lower your premiums. You can also lower premiums by having a home security system and avoiding owning a dangerous breed of dog.

Can your insurer cancel your policy?

Unlike health insurance or life insurance, where you can’t lose your insurance as long as you pay the premiums, your home insurance company can cancel your policy if it feels its risk exposure has changed. In such a case, the insurer will have to refund any premiums you have prepaid.

Homeowner’s insurance is complex, and you should make sure you fully understand your policy so you don’t have an unwelcome surprise after a disaster.

Informational Credit to Steers Insurance Limited

Leave a Comment

Time limit is exhausted. Please reload CAPTCHA.

comm comm comm