Home Insurance: Get Answers For Your Questions Here

What is covered in a standard homeowner’s policy?

1. Structure of Your Home

You should buy insurance sufficient for your home to be rebuilt if it is damaged or destroyed by disasters specified in your policy. Almost all standard policies provide coverage for structures which do not attach to your home such as garages and sheds, up to 10% of the amount of your home insurance.

2. Personal Belongings

Personal property are covered by most policies between fifty and seventy percent of the amount of your home insurance. You can determine if the amount will be adequate when a home inventory is conducted. Your belongings are covered anywhere worldwide because off-premise coverage is included in most policies. However, you may need to buy a special endorsement or floater if you own costly items which you want extra protection for.

3. Liability Protection

This provides protection against property lawsuits and bodily injury. This liability protection picks up the tab for your court defense and any money you are required to pay up to the amount limited by your policy. No fault medical coverage is also included if anyone is injured in your home.

4. Additional Living Expenses

If you are unable to stay at your home during the time when your damaged house (which is caused by any of the covered disasters) is being repaired, expenses incurred for your hotel stay, restaurant bills will be paid by a standard policy which also reimburses you for money lost which is supposed to be gained by renting out part of your home.

Is there any difference between actual cash value and replacement cost?

Actual cash value will pay for your house to be rebuilt, with the subtraction of depreciation. Replacement cost policy, on the other hand, provides payments for your home and/or property replacement without a deduction.

What is guaranteed or extended replacement cost?

It offers the most protection, by paying the total cost of your home replacement even if it is beyond your policy limit.

Is there coverage for my home in case of earthquake or flood?

Coverage for flood and earthquake can be bought separately from most insurance companies. Go for the extra coverage if you are living in area prone to earthquakes and floods. There is slight difference between them and coverage for other types of disasters. For example, earthquake insurance’s deductible is a percentage of coverage. Discuss with your agents before getting additional coverage.

Is it necessary for me to buy home insurance?

It is not legally required to buy home insurance. If your home is financed through a mortgage company then you’ll need some kind of insurance policy. However, it is a smart choice to have home insurance in order to have protection for your properties such as monetary investments and sentimental items.

What can I do to save money?

-Get higher deductible. Raising your deductible will allow you to have lower premiums, but make sure you can afford to pay the higher deductible.

-Get more than one kind of insurance from a company to get lower rates, for example, get your auto policy along with your home policy.

-Get more insurance quotes to compare and use a company with neutral opinions to get matched with several agents.

-Make your home safer by installing devices such as burglary alarms, dead-bolt locks and smoke detectors and get lower premiums.

Get your free insurance quotes today!

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