Posts Tagged ‘homeowners insurance policy’

« Older Entries

Important Steps to take if your Home is Damaged in a Storm

Friday, February 12th, 2010

The next time the wind is howling and the rain is pelting against your windows, you may be in for a big surprise, as often strong storms can lead to a damaged home.

Once the storm has cleared and you are able to clearly see the extent of the damage, you must act immediately so that you can be assured that you are covered under your homeowner’s insurance policy. In other words, if you delay filing a claim, you may be out of luck when it comes to recovering money for your damaged home.

Here are some helpful tips for taking care of business if your home becomes damaged by a storm:

  • Pull your homeowners insurance policy out and carefully read the policy’s terms and conditions so that you can be sure that your policy covers your specific type of damage. For example, a leaking rook would likely be covered, but a flooded basement likely would not.

  • Call in a contractor to assess the damage and provide you with a repair estimate. It is important to get a quote (or several, if necessary), so that you can make the determination regarding whether your damages exceed your policy’s deductible. In other words, it doesn’t make much sense to contact your homeowner’s insurance company and begin the tedious process of filing a claim if your damages amount to only a few hundred dollars.

  • Once you have received a quote, it is time to make a call to your homeowner’s insurance company. However, think hard about whether you want to make a claim, as this could potentially raise your homeowner’s insurance rates. In other words, if the damage is minimal and your homeowners insurance would only cover a few hundred dollars, you may be better off paying for the damages out of pocket and forgoing the process of filing a policy, as the increase in your homeowner’s insurance premiums will likely exceed the damage amount.

  • Don’t forget to take pictures of the damage and keep all receipts and repair paperwork so that you have a clear paper record of the damage and the subsequent repair.

Tags: , , , , , ,
Posted in Home Insurance | No Comments »

What you need to Know about Home-Based Businesses and Homeowners Insurance

Thursday, February 11th, 2010

Did you know that your homeowner’s insurance policy may not cover your home-based business?

If not then you are among the majority of people who don’t realize that their homeowner’s insurance policies may not cover losses incurred with their home-based business. With that said, you can secure additional insurance to protect your business from nearly anything from theft and property damage to employee protection and liability.

Your home-based business should not rely solely on your homeowner’s insurance policy, so it is important to consider commercial insurance to protect yourself, your employees, your business and your assets from a variety of misfortunes.

As a small business owner with a home-based business, here are a few types of commercial insurance policies to consider:

  • Business interruption - If you are unable to operate your business due to a natural disaster, commercial insurance may cover your losses for a specific length of time.

  • Crime - If your home-based business is affected by criminal activities, such as theft, vandalism or even computer hackers, your losses may be covered under a commercial insurance policy.

  • Disability - If you have an employee who can not work due to an injury, your commercial insurance policy may pay a portion of his or her salary.

  • Product Liability - If you sell products then it is probably in your best interest to carry product liability insurance. Product liability insurance can protect you and your business from negligence claims that result from your products.

  • Property and General Liability - General liability coverage protects your business and your assets from natural disasters, as well as bodily injury, medical expenses and legal costs.

  • Internet-Based Business - Internet-based businesses can take out coverage that protects their business from damages incurred by hackers and electronic copyright infringement, among other things.

Don’t let your home-based business become jeopardized because of a lack of proper commercial insurance. Talk to your insurance agent about the extent of your homeowners insurance and get the appropriate commercial insurance to protect yourself, your business and your employees.

Tags: , , , , , , , , ,
Posted in Introduction | No Comments »

When to Contact your Homeowners Insurance Company

Tuesday, February 9th, 2010

We all want to make sure that we have the best, most comprehensive homeowners insurance so that we can be sure our home, our valuables and our families are adequately protected in case of a home-related disaster or injury.

But many of us simply don’t take the time to consider the many things that can affect our homeowner’s insurance rates. In particular, the homeowner’s policy that you originally took out years ago may not work well for you today.

So, the question is: are you adequately protected? The only way to make sure that your homeowners insurance is still adequate is to contact your homeowner’s insurance agent on a regular basis; at least every two to three years. In addition, it will probably benefit you to contact your homeowner’s insurance agent when:

  • You perform extensive renovations, improvements or upgrades - Any remodeling or renovation projects that add to the value of your home should probably be reported to your homeowner’s insurance company. In addition, take pictures, keep receipts and even video record your new improvements so that you have proof should you need to file a claim. Some of the reasons you may contact your homeowners insurance company include: deck, finished basement, addition or large remodel, such as a bathroom or kitchen.

  • You purchase expensive artwork, jewelry or antiques - The addition of expensive personal effects to your home will probably require an additional policy rider. Since most homeowners insurance policies do not cover such expensive things as jewelry and antiques, your homeowner’s insurance agent will probably recommend an extra policy to cover these items.

  • You install a swimming pool, hot tub or trampoline - Any type of outdoor recreational item that may create additional dangers should be reported to your homeowner’s insurance company. In the case of trampolines, some homeowners insurance companies do not even allow them because they pose too big of a liability issue. Don’t get caught with inadequate homeowners insurance should a guest become injured in your swimming pool or on your trampoline! Be prepared and always provide this information to your homeowner’s insurance agent.

Tags: , , , , , , , , ,
Posted in Home Insurance | No Comments »

Practical Homeowners Insurance Tips to Remember

Tuesday, February 9th, 2010

One of the first things you must do when shopping for a home is to shop around for the best homeowner’s insurance rates. Many individuals, excited about the whole home buying process, tend to neglect the important of a comprehensive, affordable homeowner’s insurance policy. However, a homeowner’s insurance policy can be your saving grace should your home become damaged or completely destroyed.

With that said, there are a number of practical tips that all homeowners should remember when it comes to homeowner’s insurance:

  • Always check the company and research the agent’s qualifications before purchasing homeowner’s insurance. Make sure that you understand your agent’s qualifications, and that you have a good rapport with him or her.

  • If homeowner’s insurance rates are too steep for your budget, consider raising your deductible to lower your rates. Also keep in mind, however, that a larger deductible will equate to more out-of-pocket expenses should you need to file a claim.

  • Remind your homeowner’s insurance agent about items that can lower your premiums, including fire extinguishers, deadbolts, smoke detectors and home security systems.

  • Consider updating your home to better withstand weather conditions (and prevent homeowner’s insurance claims); this may include stronger roofing materials, better windows and a newer electrical panel.

  • Ask your homeowners insurance company if they provide automatic payment systems or web payment systems; these will make the process of paying your homeowners insurance easier, and may allow you to receive rate discounts from your homeowner’s insurance company.

  • Make sure you have adequate coverage, including replacement cost value. Make sure your valuables, such as antiques and jewelry, are also covered (these may require a separate policy).

  • Consider video taping your home for home inventory purposes. Walk from room to room, properly recording all furniture, electronics and personal items and store the videotape in a separate, safe location, such as a safety deposit box.

  • Consider purchasing separate insurance, depending on where you live. For example, you may want to purchase flood insurance if you live in a low-lying area, as standard homeowner’s insurance policies typically don’t cover flood claims.

Tags: , , , , , , , ,
Posted in Insurance News | No Comments »

Your Common Homeowners Insurance Questions Answered

Thursday, January 28th, 2010

Homeowners insurance is more than just a requirement for a home loan; it is a must for all homeowners who want to protect themselves, their families, their home and their assets.

Don’t take your homeowners insurance policy for granted, as it may one day protect all that you have worked so hard for. With that said, there are a number of common questions homeowners have when it comes to homeowners insurance:

Q:  Does my homeowners insurance cover natural disasters?

A: Perhaps. Certain natural disasters, such as wind or hail damage, are typically covered by most homeowner’s insurance policies. However, natural disasters such as earthquakes and floods are not. The only way to find out what disasters are covered by your homeowners insurance policy is to read the policy. Both flood and earthquake insurance policies can be purchased through the federal government.

Q: Does my homeowners insurance protect my most prized possessions?

A: This is a gray area. Your homeowners insurance should be adequate enough to cover the assets within your home; however, if you have many possessions that are of significant value, such as jewelry and antiques, it is best to take out additional insurance to cover their value.

Q: Will my homeowners insurance provide me with enough money to rebuild in case I lose my home to a fire?

A:  Again, perhaps. There are two different types of policies you can take out: the replacement value or the current value. In other words, if you take out only enough insurance to cover the cost of your home, this may not be enough to build anew home; in which case you would fall short of rebuilding your home. Make sure your policy is written as such as provide you with enough money to rebuild your home and replace its contents.

Q: Where can I shop for homeowners insurance?

A:  Homeowners insurance can be purchased through your local insurance company or it can be purchased online. There are many websites that allow you to get online homeowners insurance quotes and also compare costs between insurers. Many times, purchasing homeowners insurance through the same company who carries your auto insurance policy can save you money, as many insurance companies offer multi-policy discounts.

Tags: , , , , , ,
Posted in Home Insurance | No Comments »

Valuable Homeowners Insurance Add-ons to Consider

Friday, January 15th, 2010

Having comprehensive homeowners insurance provides homeowners with a sense of safety and security; that is, until you find yourself in a situation where your home has been damaged but your homeowner’s insurance provider is refusing to pay out on the claim.

When was the last time you checked your homeowner’s insurance policy? Do you understand what is covered and what is not? Have you ever bothered to read your homeowners insurance policy?

If not, you are like most homeowners. They take out the policy and then just assume that their policy will adequately protect them, their family, their homes and their belongings.

But the reality is that there are a number of major disasters that simply aren’t covered under a standard’s homeowner’s insurance policy:

  • Flood - Your home is simply not covered under a standard homeowner’s insurance policy in the event of a flood. Many people choose not to take out flood insurance because they don’t live in a flood plain, only to have thousands of dollars worth of damage when a flood occurs. Flood damage can extend far beyond water damage; it can create mold problems that can risk your family’s health. In other words, floods can create problems that cost thousands of dollars and require extensive home repair.

  • Earthquake - A home that is damaged in an earthquake is not covered by a standard homeowner’s insurance policy, which is why most individuals who live in earthquake-prone areas carry additional earthquake insurance. Most earthquake insurance policies are taken out through your state’s insurance department.

  • Expensive jewelry and antiques - If you have expensive jewelry or antiques you will want to take out a floater to your policy that covers these things.  Most homeowner’s insurance policies only cover your home’s assets up to a certain dollar amount, and expensive jewelry or furniture could significantly raise the value of your assets, some of which may not be covered. It is also important to take pictures and have the items appraised so that the process of making a claim can go easier.

Tags: , , , , ,
Posted in Home Insurance | No Comments »

Homeowners Insurance: What’s Covered and What’s not

Monday, January 4th, 2010

Homeowner’s insurance policies are often a bit tricky to read and understand. There are some pretty bizarre things that are covered under a homeowner’s insurance policy, while other events that you might assume are covered are not. This is why it is crucial that you read and understand your homeowner’s insurance policy.

In other words, instead of stuffing your policy into a file cabinet and forgetting about it, take the time to review it annually so that you can decide if it is best suiting your needs. If your homeowner’s insurance policy falls short, consider switching to a more comprehensive policy or taking out specific riders that better protect yourself, your family, your home and your assets.

There are a few things that are generally always covered under a standard homeowner’s insurance policy, including:

  • Fire and smoke damage
  • Lightening strikes
  • Tornadoes and wind damage
  • Hail
  • Vandalism and theft
  • Falling objects

However, you may be surprised to find that there are a number of things that aren’t covered under a standard homeowner’s insurance policy, including:

  • Floods - You must purchase extra flood insurance, which is typically available through the federal government.
  • Earthquakes - Again, in order to be covered for earthquake damage you must have a separate earthquake policy, which is purchased from the federal government.
  • War and nuclear accidents
  • Home businesses
  • Any wear and tear on the home, including a home’s deterioration
  • Rodent and insect infestation
  • Unintentional damage
  • Theft from a home under construction
  • Vandalism to a vacant home
  • Any property belonging to tenants
  • Any damage caused by a domestic pet

Homeowner’s insurance policies become tricky when there are other circumstances involved. For example, if you go on an extended vacation and return to find that your home was vandalized or robbed, you are not covered, as most insurance policies consider a home vacant if you have not lived in it for 30 days.

If you have a small creek behind your house that swells and floods your home during a bad storm, your homeowner’s insurance policy will likely not cover the damages that results.

If you have personal property stolen from your vehicle, you are likely covered under your homeowner’s insurance policy, yet if a thief steals your home business computer equipment, you are not covered.

Sound a bit confusing? It is!

These examples are just some of the reasons why it pays to purchase a comprehensive homeowner’s insurance policy and to make it a point to read and understand every section of the policy.

Tags: , , , , ,
Posted in Home Insurance | No Comments »

How to Lower the Cost of Homeownership through Lower Homeowners Insurance Rates

Monday, December 28th, 2009

New homeowners often fail to take into account the cost of homeownership when budgeting for a home. In particular, new homeowners think to budget for the cost of their mortgage, yet fail to consider how the cost of their homeowner’s insurance policy may affect their monthly budget.

As a new homeowner, you certainly don’t want to be faced with a tough budget that can feel downright overwhelming at times. To ease your financial stress, you will want to consider the many ways in which you can lower the cost of homeownership.

Perhaps the best way to lower your cost of homeownership is through your homeowner’s insurance rates. Many homeowners, for example, are under the assumption that homeowners insurance is similar from company to company, policy to policy, when nothing could be further from the truth.

From property value and geography to credit ratings and plan types, homeowners insurance can vary quite a bit in cost.

Credit Ratings

Your credit rating may play a big role when an insurance company determines your homeowner’s insurance rate. In short, insurance companies use an applicant’s credit history when determining insurance premiums, so the better your credit the better your homeowners insurance rates will likely be.

Insurance companies, much like any other company, determine rates based on risk; and the poorer your credit score, the more risk the insurance company is likely to assume. There are many reasons to maintain a good credit score; and even more reasons than you may not even be aware of.

Location, Location, Location

Your homeowner’s insurance rates may vary greatly, depending on the location of your home. For example, individuals who choose to live near the shore can expect to pay higher homeowners insurance rates than someone who lives inland. In other words, the idea of owning an oceanfront property may sound idyllic, but paying the costly homeowners insurance rates may just smash that idyllic image to bits.

Customization

Your homeowner’s insurance policy should not consist of a general, blanket coverage; instead, it should be customized to suit your individual needs and budget. For example, you may choose to raise your deductible on your policy to save money each month, or you may decide to take out a policy with a lower deductible to ensure that your next homeowners insurance claim won’t leave you broke. Either way, your policy should be customized to suit your individual preferences.

Tags: , , , , , ,
Posted in Home Insurance | No Comments »

Homeowners Insurance Discounts you may not be Aware of

Wednesday, December 9th, 2009

A recent study by the Independent Insurance Agents & Brokers of America revealed some pretty startling news: that many Americans - as many as 53 million households - are not taking full advantage of the homeowner’s insurance discounts that are available to them.

Right now you are probably thinking: what type of discounts have I missed out on, too?

Well, for everyone looking to save a buck or two (and who isn’t?), there are many homeowner’s insurance discounts that are seemingly right under your nose, just waiting to be taken advantage of.

So, after you’ve examined your policy to make sure that your coverage, limit and deductibles are meeting your needs, consider getting in on some of the many discounts that may be available to you. Although all of the following discounts are not available to all homeowners, one thing’s for certain: it doesn’t hurt to ask.

Questions to consider about your homeowner’s insurance policy:

  • How old is your home? If it’s less than 10 years old, you may be eligible for a nice discount. Many insurers recognize that new homes are usually built to strict standards, thereby making the home safer and homeowner’s insurance rates lower.

  • Do you have a security system installed in your home? A home security system, with monitoring services, can provide you with a nice discount on your homeowner’s insurance. Other security discounts to be aware of include: deadbolts, sprinkler system (interior), smoke detectors and carbon monoxide detectors.

  • Are you retired? If so, many insurance companies can offer you a deep discount on your homeowner’s insurance policy. Most policies discount individuals older than age 55.

  • Are you a non-smoker? Smoking in the house increases the chances that a fire will result; therefore, many insurance companies offer discounts to households in which no one smokes.

Take the time to learn about all of the discounts that are available to you, and consider making changes to your home that will lower your premiums. Over time, even a few dollars a month adds up to big bucks, so don’t dismiss even small discounts.

Tags: , , , , , , ,
Posted in Introduction | No Comments »

Homeowners Insurance and Neighbor Liability

Tuesday, June 16th, 2009

When your tree falls does your neighbor hear it?  Most certainly if it falls on his property and damages the home, auto, or other personal property.  But the question is, if a tree rooted in your property falls onto someone else’s, are you liable for damages?

The short answer is no.  But look further than that answer at the ultimate liability.  Technically speaking, claims for damage to a home are handled by that specific homeowner’s insurance.  Thus, if your tree falls onto his property and breaks a window (or worse), your neighbor’s insurance will handle the repairs.  Your homeowners policy and premium rates won’t be affected, but don’t discount that a neighbor may request that you pay any deductible amount he owes on a claim since the damage was caused from your tree.

Prevention and Negligence

Tree damage has always been a point of contention for homeowners.  Say, for instance, that you have a large tree on your property that has been diagnosed with Dutch Elm Disease.  The tree is literally dissolving from the inside.  What if a wind storm comes along and blows that tree over and damages your neighbor’s house?  Are you liable for negligence for not having the tree removed earlier?  Most likely if there is documentation existing about the diagnosis and especially if your neighbor had complained previously in the past about potential damage.

However, if you have taken good preventative maintenance on your trees such as pruning branches and checking for disease regularly, then tree damage from a sudden wind storm is just another risk that insurance companies will take.  Your insurance company will defend you in court if they are certain that you were not negligent with maintenance, and pay for damages if the court determines that you were.

Good Fences, Good Neighbors

Ultimately, however, you need to decide how well you want to maintain your neighborly relations.  If you know for certain that a tree accident is your fault then paying for repairs is logical.  And sometimes you may just want to keep good relationships with your neighbor and offer to split repair costs.  In any case, it is always wise to keep trees maintained properly to avoid the situation from happening.

Tags: , , , , ,
Posted in Home Insurance | No Comments »

« Older Entries