Home Owners Insurance
Insurance is a promise of financial compensation against any unforeseen risk. A home owners insurance company is an organization which provides cover on a home against any loss. It means that in case of any mishap, the company will compensate any financial loss. To have this cover, a person is required to pay a fixed amount periodically to the company, which is known as premium.
Why is it important to ensure your home
For a homeowner, it is even more important to invest in a homeowners policy, as a house includes the basic structure as well as the belongings inside it. A homeowners insurance policy covers not only the structure of the property but also other unattached structures around it such as swimming pool, garage or a tool shed. The contents of the house including the furniture, jewelry and other articles are also insured under a home owners insurance policy. The safety of the people living inside it and the guests visiting them is also taken care of in a well-chosen insurance policy.
Types of coverage available:
Coverage for the house includes covers the house for an amount that will be required to rebuild in an unfortunate event of total loss. However, this depends on the terms of the agreement between the insurer and the insured, which is based on the location of the property, material used, number of people living in the house and other related details.
Coverage for other structures includes cover for unattached parts of the home such as a swimming pool, garage or a sunroom. Personal property coverage is for furniture, electronics and other such contents of the house that are not fixed. Loss of use coverage is applied when a homeowner is forced to temporarily relocate due to total loss of his or her property.
Personal liability protects the home owners insurance against claims made by visitors who injure themselves on his or her property. Medial expense coverage helps pay for the medical bills incurred during any accident on the property.
Whom to approach for a home owners insurance policy
To get a home insurance policy written, the homeowner can get in touch with a local agent or call the toll free number of the company with whom he or she wishes to do business. It is always a good idea to compare quotes from various companies before going in for the policy. These quotes can be obtained free of cost by putting a request through the official website of the company, or by calling their customer service centers.
State Farm Insurance, Allstate Insurance Company, First American Title Insurance are some of the major home owners insurance companies that offer homeowners insurance along with other financial services. These national homeowner insurance companies cater to the insurance needs throughout most of the states in the US. The basic policies that they offer generally include coverage for the house, for other structures, for personal belongings, loss of use, personal liability, and medical expenses. They provide insurance for all kinds of homes such as condominiums, row houses, ranches, farms, and mobile homes.
Each company has its own unique policy of providing cover, as well as services to the insured party. It is important to understand what is covered under a particular policy and what is excluded. Homeowner insurance companies have their websites or local agents that help customers understand the details of the contract offered and also provide quotes. Most companies have a national toll free number where a customer can call to obtain all these services.
Before buying an insurance policy, customers must compare quotes from different insurance companies and the perils covered. It is possible to get a policy written over the phone or through a local agent.
Special cases
Homeowner insurance companies write insurance policies according the requirements of the homeowner based on the location, type of house, number of people living in the house and the geographical setting of the house. For certain areas, there are certain different rules that home owners insurance companies follow. Florida and California are such example.
Florida
Florida is a hurricane prone state and this makes the insurance company at risk of paying out a large number of claims when disaster strikes. This was quiet evident when Hurricane Katrina struck Florida as many insurances companies went bankrupt due to the huge number of claims made on them as many homes were destroyed.
The cost for a homeowners policy that is situated in a disaster-prone area will be higher in comparison to a relatively safer area. This is because the risk in such areas is greater for insurance companies who in turn need to charge higher premiums.
As there is a great risk of flood in Florida it is a good idea to add a flood policy along with a usual homeowners policy. This cover can be bought from the National Flood Insurance Program (NFIP), which was set up to reduce flood losses and provide financial compensation to home and business owners.
A local agent can be approached for advice regarding the writing of a comprehensive insurance policy. Many agents represent multiple companies and their products, and are known as insurance brokers. They can be approached for a comparison in rates, as well as for writing the policy. Homeowners can also visit the official websites of different companies or call the toll free national number for the same purpose.
California
California is an earthquake prone area, which is why it becomes necessary for homeowners in this area to buy an earthquake policy. Earthquake insurance is not automatically included in a general home owners policy as it is regarded as catastrophic coverage. It is required to purchase it separately and is added to the standard policy as an endorsement.
The cost of earthquake insurance differs from company to company, which is determined according to the location of the property and the material used to build the house. It is advisable to contact the local agent for an estimate and any other inquiry regarding the policy. Many companies offer this service online, as well as through telephone customer service department.
Some natural disasters are automatically included in most standard policies, whereas some are not covered at all. The location of a property and the risk it involves will determine the rate of the policy.
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