Benefits of Home Insurance to Keep it Safe
The Best Company that provides Home Insurance
Tips for choosing Home Insurance so as not to lose
Homeowners insurance is a form of property insurance that covers losses and damages to an individual’s residence, along with furnishings and other assets in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property. A homeowners insurance policy usually covers four kinds of incidents on the insured property: interior damage, exterior damage, loss or damage of personal assets / belongings, and injury that occurs while on the property. When a claim is made on any of these incidents, the homeowner will be required to pay a deductible, which in effect is the out-of-pocket costs for the insured. For example, say a claim is made to an insurer for interior water damage that has occurred in a home. The cost to bring the property back to livable conditions is estimated by a claims adjuster to be $ 10,000. If the claim is approved, the homeowner is informed of the amount of their deductible, say $ 4,000, according to the policy agreement entered into. The insurance company will issue a payment of the excess cost, in this case, $ 6,000. The higher the deductible on an insurance contract, the lower the monthly or annual premium on a homeowners insurance policy.
Every homeowners insurance policy has a liability limit, which determines the amount of coverage the insured has should an unfortunate incident occur. The standard limits are usually set at $ 100,000, but the policyholder can opt for a higher limit. In the event that a claim is made, the liability limit stipulates the percentage of the coverage amount that would go toward replacing or repairing damage to the property structures, personal belongings, and costs to live somewhere else while the property is worked on. Acts of war or acts of God such as earthquakes or floods are typically excluded from standard homeowners insurance policies. A homeowner who lives in an area prone to these natural disasters may need to get special coverage to insure their property from floods or earthquakes. However, most basic homeowners insurance policies cover events like hurricanes and tornadoes.
Homeowners Insurance vs. Home Warranty
While the terms sound similar, homeowners insurance is different from a home warranty. A home warranty is a contract taken out that provides for repairs or replacements of home systems and appliances such as ovens, water heaters, washers / dryers, and pools. These contracts usually expire after a certain time period, usually 12 months, and are not mandatory for a homeowner to buy in order to qualify for a mortgage. A home warranty covers issues and problems that result from poor maintenance or inevitable wear-and-tear on items — situations in which homeowners insurance doesn’t apply.
Homeowners Insurance vs. Mortgage Insurance
A homeowners insurance policy also differs from mortgage insurance. Mortgage insurance is typically required by the bank or mortgage company for homebuyers making a down payment of less than 20% of the cost of the property. The Federal Home Administration also requires it of those taking out an FHA loan. 1 It’s an extra fee that can be figured into the regular mortgage payments, or be a lump sum charged when the mortgage is issued.
Benefites Home insurance
1. Protection Of Your Main Dwelling
The main reason for home insurance policies is to protect your main dwelling, that part of your home where you actually live. Imagine dealing with a total loss due to a house fire or extensive (and expensive) damage due to a hurricane or tornado. You should ideally insure your home at 100% of its value, but at least 80% to 90% is pretty standard. Minor damage, major damage, and total replacement costs will be covered by most policies.
2. Protect Your Detached Structures
The second most important component of homeowners insurance is coverage for your detached structures, which may include a garage, sheds, fences, the dog house, and more. Normally, detached structures are covered at up to 10% (or some other percentage) of the coverage limit for your main dwelling. But you can customize your policy if you want additional coverage for detached structures on your property.
3. Coverage For Your Home’s Contents
Whenever you get home insurance, you need to take inventory of all the appliances, furniture, electronics, and other personal property inside of your home that would be covered by the policy. If a covered event (like a storm) damages or destroys some of this property, you can be reimbursed in part or in whole, depending on your policy’s specific stipulations. This is a major benefit of this kind of insurance that is often overlooked by homeowners.
4. Liability Coverage
This is one of the reasons you really can’t afford to be without homeowners insurance. It could cost tens of thousands of dollars or more in medical bills should someone be injured on your premises, and there is the possibility that you could be held liable. Your policy will not cover you or household residents’ injuries or property damage. It is designed to protect you from expensive laws that could arise from, say, a dog bite injury to a visitor.
5. Loss of Use Insurance
Should you be forced out of your home while it is being repaired or rebuilt following a covered event, you will incur hotel, food, and travel expenses. These will be covered up to a point by your home policy’s loss of use component. This is yet another benefit of insuring your home – it does much more than just repair damaged shingles!
How to Claim Home Insurance :
1. File a police report
If your home was burglarized, the first thing you’ll want to do is file a police report. If you’re filing a theft claim, you’ll need to provide your insurance company with a police report to verify the details of the crime.
2. Contact your insurance company
Call your insurance company and inform them of the incident. The insurance company claim professional will likely inform you if the loss is covered by your policy and how long you have to file the claim. You may also be given a ballpark estimate of the loss amount and whether or not it exceeds your deductible. Other information – like how long the process will take and whether or not you need to obtain a repair estimate for structural damage – may also be provided.
3. Fill out the claim forms
You’ll then fill out the claim documents sent to you or provided through the company’s online or mobile claims portal. One such document is your proof-of-loss form, where you provide your personal information, the cause of the loss, the part of your house or property you’re claiming a loss on, and the estimated loss amount. You may also submit photo or video evidence of the damage at this time. By law, claim forms must be sent to you within a certain timeframe after your initial contact with the insurer. Once you’ve filled out the necessary paperwork, be sure to send it back to your insurer quickly to avoid delays.
4. Provide documentation of everything
In the event of, say, a claim for personal property loss, you’re going to need to substantiate the loss before you’ll be sent a reimbursement check. Having receipts, a list, or a home inventory that confirms the value and description of damaged or stolen items will improve your chances of getting fully reimbursed down the line.
5. Make temporary repairs
You’ll want to make sure that any openings or damage to the structure of your home won’t result in further damage. If you notice a leak or a hole in the siding of your home, make temporary repairs and hold onto the receipts so that you’re reimbursed by the insurance company later on.
6. Prepare for the adjuster
Your claim may also require a visit from the insurance adjuster, particularly for large claims involving damage to the structure of your home. The adjuster’s role is to assess the damage and confirm several details before reimbursement can proceed. The inspection may include, but isn’t limited to:
Confirming that the cause of the loss is covered in your policy
Detailed inspection of your home’s structure
Providing the adjuster with any documentation, like receipts, photos, or a home inventory
If it’s a liability claim, the adjuster may ask for contact information for doctors, lawyers, or anyone familiar with the claim, a thorough interview with you, the policyholder
7. Obtain repair or rebuild estimates from contractors in your area
You’ll want to get damage estimates from local contractors, roofing companies, or even appraisers depending on the extent of the damage. Having repair or rebuild estimates from licensed contractors could give you more leverage in the event that your insurance company low-balls your settlement amount.
8. Receive the claim payout and complete repairs
Once your claim is approved and you and the adjuster have agreed to the settlement amount, you will receive the insurance payout. If you have a mortgage on the home, the insurance company will send out two checks – one to you and one to the lender that is listed on the insurance policy. In the event of damage to the home’s structure, the lender gets equal rights to the insurance check to ensure that necessary repairs are being made to the property that it has an investment in. Your mortgage company will typically put this money into an escrow account and will release the funds for payment as the work is completed.
If you’re insured for personal property at its replacement cost, you’re normally sent a check for the properties’ actual cash value (its value minus depreciation) and then reimbursed the remaining amount once you actually replace the property.