Building & Content
Insurance
for Homeowners
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Homeowners Insurance
Terry Ross
Your home is generally your greatest asset and one that you
can’t afford to loose so make sure you don’t skimp on your
homeowners insurance.
Unlike car insurance it is not illegal to own a home without
taking out homeowners insurance but if your home is financed in
any way by a third party lender then the likelihood is that you
will have to take out homeowners insurance at least to cover
the building.
Homeowners insurance is normally split into two basic
categories, buildings and contents. Some people take the risk
and don’t take out any insurance against the contents of their
home but they probably have never worked out how much it would
cost to replace everything they own.
Others don’t pay much attention to the amount of liability
cover that is included in their homeowners insurance. For me
this is a big risk. If someone has an accident in your home
they will be claiming against your homeowners insurance and if
you don’t have the cover they could then be looking to you for
compensation!
The element of your homeowners insurance that relates to the
building covers you for the cost of rebuilding your home and
other buildings (that you own) in the immediate vicinity of
your home (such as garages and summer houses) in the event of
fire or other disasters. You need to make sure your insurance
covers you for the full cost of clearing the site and
rebuilding your home. Always check out the insurance policy
small print to make sure you are totally clear as to what your
basic homeowners insurance doesn’t cover which will generally
include damage due to natural disasters such as flooding or
earthquakes.
You can purchase flood insurance separately, through your
homeowner’s insurance provider, but the policy will be with the
Federal Flood Insurance Program.
The contents element of your homeowners insurance will cover
you for everything inside your home including carpets,
curtains, clothes and furniture (anything that isn’t classed as
structural). Your homeowners insurance will also usually cover
you for lost or stolen cash and credit costs and loss or damage
to your personal belongings while off the premises. It’s really
easy to underestimate the amount of homeowners insurance you
require, for contents, so the best way is to do a full
inventory of everything you own.
As stated previously, never leave yourself exposed by not
ensuring that your homeowners insurance covers you to a
sufficient level for third party liability. If someone trips
and falls down the stairs you’ll need good insurance and if you
don’t have pet insurance then liability protection could be just
what you need if you pet damages someone else’s property.
If you lost your home for any reason your living expenses would
significantly increase particularly in the early weeks when you
are living in hotels and eating out. Make sure your homeowners
insurance covers you for such costs, the level of insurance
varies depending on which homeowner’s insurance policy you take
out so pay particular attention to the benefits you will receive
when getting quotes for your homeowners insurance.
If you are renting your property you need to take out renters
insurance rather than homeowners insurance. As you don’t
physically own the property you will not be able to insure
against damage to the building, only against damage to your own
personal possessions.
The cost of homeowners insurance varies depending on such
things as level of cover, size of house, type of house, value
of personal possessions and the area in which you live. You
will need to get a homeowner insurance quotes to get a full
understanding of how much your homeowners insurance will cost.
Always get several quotes as shopping around could reduce your
annual cost of homeowners insurance quite dramatically and, as
with most insurance nowadays, shopping online generally results
in some of the most competitive prices.
About The Author: For more on
http://www.24-7-insurance.com/Homeowners_Insurance.html visit
www.24-7-insurance.com
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