Miscellaneous Home Coverage

There are several different types of additional home coverage that you may wish to investigate. First, there is what's termed Umbrella Liability insurance. With the large number of lawsuits being filed today, and the high amounts that many courts are awarding, for many families, conventional coverage is not longer sufficient. Umbrella coverage takes over where one's homeowners' coverage leaves off. It can be used to increase your coverage to $1 million dollars or more. Another type of insurance coverage that is also available is earthquake coverage. Earthquake coverage is generally not included in the standard protection policy. It's usually available, however, for an additional cost from your homeowners' insurance company. The cost will differ depending upon the area in which you live and the corresponding risk that the insurance company will have to assume. The last type of additional coverage that you, as a homeowner might want to look into is flood insurance. Compensation for losses resulting from flood are also not included within the basic homeowners' policy. Depending upon the area that you live, this coverage may or may not be sold by your homeowners' insurance company. For those outside coverage areas, the government does provide federal flood insurance, and your agent should be able to provide details on how to obtain information on this program. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not the substitute for the advice of an insurance professional.

Injury Coverage

Suppose your dog was to bite the child next door, or one of your neighbor's was to trip and fall down your stairs. Do you know that you would be responsible for the damages and any and all medical expenses incurred? Your homeowners' insurance provides coverage for occurrences such as these with personal liability insurance. This coverage will pay any legal fees in the event of a lawsuit up to the state limit written into the policy for damages assessed against you or another family member. The minimum liability coverage is usually $35,000 but larger amounts are available. Your homeowners' policy also covers medical payments for minor injuries, usually up to a $500 limit which may occur either on or off your property. This insurance is good regardless of which party is at fault. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not the substitute for the advice of an insurance professional.

Property Coverage for House and Property

The most complete property coverage for your house is a form of replacement coverage. This coverage is usually equal to the cost of completely rebuilding your home in the event of a total loss. This should not be confused with the market value of your home. This coverage is preferable to homeowners' insurance which reimburses for losses only on the basis of actual cash value. The problem with the actual cash value basis is that it takes into account the mount of depreciation on the damaged item from the time it was new. In other words, you would receive less than it would cost to rebuild your home. Your home should be insured up to 80 percent of its replacement value or the cost of rebuilding it. You only need to insure 80 percent because it is unnecessary to insure the land or foundation which is typically 20 percent of the total property value. It is important to understand that under most policies, the coverage you have on your home directly affects the amount of protection you have on your contents. Usually, your personal property is covered up to half the value for what your home is insured for. One last item you should discuss with your insurance agent is whether or not your policy has a clause which will allow for inflation. Over a period of time, inflation can considerably add to your homes' replacement cost and although you will pay more to include this in your policy, the increase coverage is well worth the expense. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not the substitute for the advice of an insurance professional.

Property Coverage for Content

The amount of coverage you have on your home is usually directly proportional to the amount of protection you have on its contents. Typically, your contents are covered up to half of the value for which your home is insured. For example: if your home is insured for $100,000, your contents would be covered up to $50,000. When deciding how much coverage you need on your contents, it is important to first take an inventory of all your household items. Start a room at a time and record the name of the item, the approximate value and the purchase date. Be as specific as possible, especially on the more valuable items. You would also prove beneficial to take pictures or even videotape individual pieces of particular value. Be sure to get an appraisal of any items which may appreciate. Total the value of your items on your inventory list. This should be a relatively good assessment of the value of your household belongings. Don't forget to check your list occasionally and update any new purchases. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not the substitute for the advice of an insurance professional.

Why Have Homeowner Insurance

For most individuals, the purchase of a home is the single biggest investment of their lifetime. Accordingly, it only makes sense to protect that investment and the contents thereof, which usually are at least sentimentally, if not, also monetarily valuable. Actually, one would probably be very surprised to find out the total worth of their possessions. It is usually more than one might imagine. Homeowner insurance generally protects against loss due to fire, theft, smoke, vandalism, and/or accident for which the insured is responsible. Depending on the form of homeowner coverage you purchased, and there are basically only three different types, you could be protected for up to 18 different perils recognized by the insurance industry. These would include nearly every disaster except flood, earthquake or nuclear war. All individuals need to protect themselves against property loss, few of us could financially afford the loss or severe damage of our home. Homeowner insurance can protect you against this possibility. Remember, consideration of your insurance needs is not a subject to be taken lightly. Accordingly, this information is not the substitute for the advice of an insurance professional.