Winterizing your home can not only saves money on the cost of heating, it can also keep your homeowners insurance costs down in lower premiums. Winter fires are one of the largest causes of insurance claims, with water damage following closely behind. To avoid an unhappy winter surprise, here are some steps you can take:
Prevent a House Fire
Cooking fires are a leading cause of home fires and homeowner’s insuran
New reports indicate Hurricane Irene might prove to be one of the 10 most expensive disasters in U.S. history. Hurricane Irene hit the Northeast in August 2011 and was the worst hurricane of the 2011 hurricane season, causing 56 deaths and upwards of $10 billion in damage, according to the New York Times. With this hurricane, citizens of states such as Connecticut, Rhode Island, Vermont, New Hampshire, New Jersey or New York have a renewed interest in making sure some kind of hurricane coverage is a part of their homeowners insurance. As a new first-time buyer of this coverage, here is how to get started:
Do You Have Current Coverage?
First, call your homeowners insurance agent to see if your current policy has hurricane coverage and how much it would cost to add the coverage. Peace of mind might be as close as one phone call to get a quote and add the coverage. Since this coverage is usually expensive, you might also want to get a few other quotes to compare and ask your agent if they can match another company’s lower quote.
If You Need to Find Coverage
In certain areas, it might be hard to find a homeowners insurance company that offers hurricane coverage. To find names of companies, look to your state insurance board. From this website or by calling them, you should be able to find out which companies offer hurricane coverage. If your state insurance board lists a company, you then know they are fully licensed in your state to sell insurance. If a company is not listed with your state, do not buy from them. If you are not able to find information through your state’s board of insurance, the National Association of Insurance Commissioners is another resource with a helpful website which includes maps to show you insurance companies in your area.
Is Your Current Coverage Enough?
If hurricane coverage is too expensive or is not available in your area, your current policy might have wind or flood damage coverage. In some areas, coverage for flooding or wind damage has been sufficient to settle claims in your area and might be one reason hurricane coverage is not offered. Flood insurance is particularly important. With Hurricane Irene, much of the damage was caused by flooding and, according to the New York Times, because consumers did not have this type of coverage as a part of their homeowners insurance, it is estimated that less than 40% of the total losses for Hurricane Irene damage were paid by insurance carriers. This is a lower amount that in past hurricanes and is an illustration of how important it is to have flood coverage, especially if you live near water or in a coastal area.
Choosing the right amount of home insurance can be difficult. Home insurance is a mystery for many people, especially first-time home owners. This article will outline some factors to keep in mind to make your decision easier when looking for the best package for you.
What is Home Insurance?
Home insurance covers the replacement cost of your home and its contents, in case of an emergency such as fire, damage or theft. Home insurance can cover the cost of the loss of your home, as well as some of your living expenses in case your home becomes uninhabitable for a period of time due to an emergency. Without home insurance, the cost for repair or replacement of your home and belongings as well as paying for supplemental housing can be a financial disaster for you and your family.
How Much Home Insurance Do You Need?
How much home insurance do you need? When reviewing your policy, you will want to look at any limits on repairs and on the amount of money you will be reimbursed for supplemental housing. Most importantly, you need enough coverage to rebuild your home if it is destroyed or pay for any extensive damage due to fire, explosion, theft or other cause of damage.
To purchase home insurance, it is important to know the total cost of rebuilding your home. This figure is different than the resale value of your home. The resale value of your home includes the value of the land your home was built on. Also, the construction of a single home may cost more than the construction of multiple homes. Builders often minimize the cost of materials and labor by building multiple homes at one time. To determine the cost to rebuild your home, you should also consider the value of upgrades you made to your home such as a new kitchen and bathroom, furnishing a basement or adding insulation and energy efficiency measures.
Also, don’t confuse the cost to rebuild your home with the cost to pay your mortgage. Mortgage balance and replacement cost are two different things and your mortgage balance does not impact the cost to rebuild your house.
To find out the cost to replace your home, you can get a replacement cost appraisal from a building contractor or real estate appraiser to give you a detailed estimate of this cost and a realistic picture of how much insurance coverage you require.
Storm damage, burglaries and cooking fires are three big hazards to homeowners and the reasons for the vast majority of homeowner’s insurance claims. Over the holidays, there are special circumstances that make these events all the more likely. Here are some tips to avoid an unhappy new year as a homeowner:
Avoid Winter Weather Damage
In the last decade, winter storms have caused approximately $26 billion in losses. It pays to be aware that cold, ice and snow can do a lot of damage to your home and are a leading cause of homeowner insurance claims. To avoid tree damage due to snow and ice, look for low lying branches or old branches on trees that look unstable. These branches may be brought down by heavy snow onto your roof, into your windows or onto your car. Remove or trim branches yourself or have a tree service come out and do an assessment and remove branches for you. Also, when you are up on the ladder installing holiday lights, clean out gutters and look at your roof to make sure it’s in good shape for the winter. To avoid frozen pipes and water damage if pipes burst, install insulation onto pipes and, during frigid weather, let faucets drip to prevent freezing.
Avoid Cooking Fires
According to the National Fire Protection Association, in 2010 there were 1.3 million house fires in the United States, resulting in over $11 million in direct property loss. The leading cause of home fires in the United States is from cooking fires. During the holidays, people cook large family meals and spend more time in the kitchen. To avoid a cooking fire, play it safe in the kitchen. Keep flammable materials, such as towels, curtains, oven mitts and food packaging away from heat sources. Always keep an eye on the stove and use a timer. The most dangerous piece of cooking equipment is a turkey fryer so use these with particular caution and closely follow directions.
Avoid a Break-in
House burglaries have been on the rise in recent years. Burglars know you are buying presents this time of year and these items will be new, possibly expensive and easy to steal in original packaging or wrapped as gifts. To avoid being burglarized this holiday season and having to file a homeowners insurance claim for theft or damage to your home where a burglar gains access, keep wrapped presents away from windows, don’t leave gifts in your car unattended and don’t leave boxes outside for garbage pickup for expensive electronics or other items. When getting rid of a box for an expensive item, take the box to a dumpster or break the box down and put it in a trash bag.
Believe it or not, unforeseen perils can strike anytime and without homeowners insurance in your arsenal of financial tools, recouping your losses and starting over again is an impossible feat.
While regarded by some as just another useless expense given all of the costs that come with owning a house, getting access to homeowners insurance is definitely one of the smartest moves you'll ever make. It is simply smart planning in action that can help protect you and your household from expensive, often devastating surprises along the way.
At its simplest, homeowners insurance is a legal contract between you and an insurance carrier. If your home is damaged or destroyed by unexpected dangers like fire, lightning, wind, explosion, theft, vandalism and a host of other specific causes of damage, the latter agrees to cover whatever losses you may incur in exchange for the regular payment of a premium.
Contrary to what most people suppose, homeowners insurance is not just a straight up financial source to help you rebuild your dwelling when disaster strikes. It is actually a multi-faceted tool that not only gives your residence the safety and protection it deserves but also includes coverage for contents, loss of use, including personal liability insurance for damage or injury to a non-owner's person or property as well.
Your homeowners insurance policy states the specific types of losses it will cover and the maximum amount it will pay. Most policies available nowadays come in various forms with different types of coverage. Don't wait until it's too late. Make sure you sign up for homeowners insurance right this very moment to strengthen your peace of mind in a snap.
Your home is your biggest investment and protecting it doesn't have to be a big challenge. Nonetheless, not all homeowner insurance deals are made equal and zeroing in the on the perfect one for you can be a daunting task. No need to worry just yet though. You'll definitely find the homeowner insurance you've always wanted as soon as you give our pages a quick browse.
Choosing homeowner insurance can be a daunting and confusing process. In today’s market, more than ever, it is important that you get the best deal for your money. However, you also want to choose a company that is financially stable and provides quality customer service in addition to the best price for coverage. There are many resources available to help you find the best homeowner insurance companies when you are shopping for a policy. While doing online research and asking friends and family for references is a great place to start, there are plenty of tools and tricks that you can use to make sure you get the biggest bang for your buck. Check these resources as you begin your search for the right plan for you.
Homeowner Insurance Rating
Insurance companies are rated by companies that have online listing of different companies. Each company uses a slightly different methodology to determine which companies are the most financially stable. You want to purchase a homeowner insurance policy from a company with the highest rating possible. This is especially important as a company with a low rating might be less willing or less able to pay you if you file a claim. This is an added headache you don’t need when you are also dealing with a damaged home. Companies that offer these ratings are Ambest.com and Moodys.com.
Consumer Watchdog Groups
You can also turn to subjective reviews from third-party organizations such as the Better Business Bureau in your area. These companies review insurance companies based on criteria such as customer service and the best prices. The Better Business Bureau is a non-profit and they publish their ratings and consumer complaints they receive about homeowner insurance companies. These can be a great guide for you to choose the best company.
State Department of Insurance
Each state has a department of insurance that can help you chose the best company for your homeowner’s policy. Many states have online databases which provide these ratings or you can contact them by phone to ask about a particular company. Also, the Department of Insurance provides licenses for insurance companies that want to do business in their state. If a insurance company you are considering does not appear on their database, do not purchase their policy.
When collecting homeowner insurance quotes, it’s recommended that you shop around and get at least three quotes to find the best deal for you. When shopping for homeowner insurance, most people just look simply at the monthly premium, the deductible rate and policy limits for coverage. However, to make a wise choice, there are other factors people should keep in mind which don’t seem so obvious.
A Home is More than Just a Structure
Your home and its contents are personal to you and have value beyond just the structure of your house. Think of the many uses of your home and what it would cost to really replace the home’s value. If you use your house as a home office for a business or have expensive computer equipment, you might want to purchase additional insurance. If you have costly appliances that you’ve found are vital to your lifestyle, such as a great stove or a large refrigerator, you might want to factor those in when determining your coverage amount. Discuss these items with the agent to make sure your homeowner insurance policy is tailored to your lifestyle and needs.
Home Improvements Count
You can lower your homeowner insurance quote by getting a new roof, alarm system, changing your heating, plumbing or electrical system or putting a fence around a swimming pool. Homeowner insurance companies may offer discounts if your alarm system is connected to the local police or fire department. Make sure to discuss these improvements with your agent when you get your initial quote and keep your agent up-to-date on improvements made in the future.
Special Circumstances
Make sure you have coverage special circumstances. For example, if you live on a floodplain, make sure flood coverage is included in your policy. Carefully read all circumstances covered by the homeowner insurance quotes so you won’t find out, after an emergency, you are uninsured.
Protect your Valuables
If you have valuable such as jewelry, paintings and collections, you should extra insurance called floater policies. For a floater policy, you will have the items appraised and will want to keep the appraisal in a safe place. It is also best to have an inventory as a record of all your other valuables not traditionally appraised such as office equipment, computers, television set, appliances, etc. This inventory, preferably kept on a videotape, will be proof of ownership in case of loss or damage to these items. It’s advisable to keep the videotape away from the house such as at a friend or relative’s house or in a safety deposit box and to update the inventory each year. This record will be invaluable if your home or assets are damaged.
