Home Owner’s Insurance

27462604_sIf you own a home, homeowners insurance is essential. It will protect the tremendous financial investment you are making by paying for part or all of the replacement costs in case your home is destroyed. There are different levels of homeowners insurance:

  • HO1: Specifies perils with very limited coverage.
  • HO2: Specifies perils with less limited coverage.
  • HO3: Covers all the perils on buildings and specified perils on personal property excluding the risk of floods, earthquakes, wars, and nuclear accidents.
  • HO4: Covers renter’s personal property loss but not residence. It also covers limited liability.
  • HO5: Covers condominium owner’s personal property loss and the loss of the use.

When deciding on the amount of coverage to buy, insure for at least the cost to replace (not the replacement value which can be far too low) because it most likely will worth more than what you paid. Be aware that items such as collectibles and home office equipment may require additional coverage.

Ways to Save on Premiums

  • Raise your deductible. The larger the deductible, the greater discount you may get. Just make sure to keep an emergency fund to cover any losses.
  • Secure your home with a home security system.
  • Shop around for a lower rate if you own a newer home because it is usually less expensive to insure than an older home.
  • Inquire about senior discounts if you qualify.
  • Consider buying group policies through a company or an association.
  • Insure your property and liabilities through one company.
  • Compare quotes from several companies.

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