House Insurance Shopping Made Easy!

Homeowners insurance is important for every homeowner to have as your home is likely your most valuable asset and your most expensive investment. Having a comprehensive house insurance policy is critical is protecting your personal property. When you compare quotes, there are several items to keep in mind. You should be well aware of what is included in your policy and what additional features you may want to consider before you buy a house insurance plan.

The type of structure you own is important in what type of house insurance policy you should buy. If you own a single family home, the structure is generally covered along with any out buildings on the property, such as the detached garages and sheds. If you own a condo, you may find these a bit more complicated when you are comparing quotes. These plans will generally cover the interior structures, such as the wallboard and light fixtures but you will need to be well aware of what is covered in your association's policy. Landlords will usually want to have a policy that will cover just the structure but not the contents within the house; whereas renters will want to have coverage that includes their contents but not the structure of the unit.

Standard house insurance policies vary from company to company, but generally there are 16 perils that are covered. Because terms vary, it is important that you shop around and get quotes from multiple agents. Compare coverage and the cost to find the policy that is the cheapest and includes the best coverage before you buy. A basic policy will cover the following perils:

• Fire or lightning
• Smoke
• Windstorm or hail
• Weight of ice, snow, or sleet
• Falling objects
• Vandalism or malicious mischief
• Theft
• Explosion
• Riot or civil commotion
• Damage caused by aircraft
• Volcanic eruption
• Accidental water or steam damage from heating, plumbing, air conditioning, or from a household appliance, or automatic fire-protective sprinkler system
• Accidental tearing apart, burning, cracking, or bulging of air conditioning, steam or hot water heating system, or automatic fire-protective system
• Freezing of a plumbing, heating, air conditioning or automatic, of household appliance, or fire-protective sprinkler system
• Accidental damage from artificially generated electrical current

Some events are excluded from a standard house insurance policy and should be discussed with an agent if they are a concern to you. These typically include floods and earthquakes. If you live in an area that experiences either of these two events, you may want to talk to an agent about including these items in a quote while you are making a comparison of coverage.

Personal Property Coverage

The amount of house insurance covered in a policy depends on the loss settlement clause, which identifies the property that will be valued at replacement cost and property that will be valued at actual cash value. The difference between these two is substantial and should be fully understood while you compare quotes for house insurance.

Your homeowners policy will generally cover household contents, such as furniture, appliances, clothing, etc., up to 40% of the amount your house is insured for. For example, if you have house insurance for $100,000, the contents coverage will replace up to $40,000 of your valuables. If you feel you need greater coverage for your belongings, you can obtain this at a higher premium.

Replacement Cost VS Cash Value

The house insurance company will use the actual cash value to determine how much your policy will cover your items in a loss. If you have a policy that gives you the actual cash value of an item, it means that the house insurance company will pay out the original amount of money that the item was worth at the time you bought it, minus the amount calculated to represent the wear and tear the item has sustained.

The replacement cost means that the house insurance company will give you enough money to replace the item lost in a claim. That means you will have enough to buy a similar replacement item at the current market value. When you compare quotes, you will likely want to chose to have the replacement cost in your policy. The difference in the amount of coverage is great and must be understood.

For instance, consider what would happen if you had to make a claim for a stolen laptop. You bought your laptop three years ago for $2,000 but the current value of this specific type of laptop is now only $500. If you had a actual cash policy, the house insurance company would only pay out $500 for the claim. If you have a replacement cost policy, the house insurance company would give you enough money to buy a comparable laptop in today's market, which would likely be closer to $2,000.

Take a Home Inventory

Many homeowners do not realize how much value the belongings they have accumulated over many years can equate to, especially when it comes to the replacement cost. Consider all the items in your home, from your electronics, to your appliances, furniture, clothing, jewelry, art, and more. After needing to make a claim in a total loss from something like a fire or storm, many homeowners will realize they did not have enough personal property coverage.

You can figure how much personal property coverage you need in your house insurance policy by taking a home inventory. This will also help simplify claims should you ever need to make one.

To take a home inventory, simply walk through every room in your home and make a list of every item in the room. You will want to also take note of the value of each item and write down a serial number if available. Photographs and videotapes are very helpful when needing to make a claim. Be sure to open closets, drawers, storage buildings and the garage. You will also want to compile receipts for major purchases. Keep this list, any photos and videos and receipts in a fireproof area, and copies somewhere outside the home. As a homeowner, doing this little extra work now will greatly assist if you ever need to make a claim on your house insurance. It will better ensure that you get the total value of your items replaced.

Liability Insurance

Liability insurance for your house is very important in protecting you against the financial uncertainty arising from an injury or property damage, which you or your family may cause to others. This type of coverage in your house insurance policy generally covers injuries on and away from your property.

The liability coverage in your house insurance policy covers you and anyone in your household in the event that they are accused of accidentally causing injury or damage to property. Liability coverage can help provide funds for legal defense fee and can pay damages, up to your policy limit, if needed.

If you did not have liability insurance as part of your house insurance policy, the follow assets could be used to financially fund any expenses that could arise from such an incident:

• Your home and other real estate equity.
• Your liquid assets, such as checking, savings, CDs, and money market accounts.
• Your personal property, such as the value of your belongings if you liquidated, such as cars, boats, jewelry, furniture, etc.
• Your retirement accounts, such as you IRA, 401(k), and pension plans.
• Your non-retirement investments, such as stocks, bonds, and mutual funds.

The amount of liability coverage you need in your house insurance policy should be discussed with an agent. There are a variety of limits available, which should be discussed.

Get House Insurance Quotes

Protect your most valuable asset and most expensive investment with a comprehensive house insurance policy. You can quickly and easily get free quotes online by filling out the simple form. You will be contacted by local agents who will offer you the best house insurance plans and the cheapest rates. Get your free quotes today!

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