One thing I keep hearing about is home owner's insurance coverage and the heavy property damage caused by a hurricane. What's the story on flood insurance and home owners insurance? Can I save money on homeowner's insurance?
Home owners insurance is required on mortgaged property by the lender. This policy will cover the house itself but does not necessarily include all your personal property. Review you coverage to make sure all your property is adequately covered.
The insurance company will look at your claims history, employment history, current occupation, criminal record, and credit record. Other information needed is marital status, social security number, age, and previous addresses. Are you a "good risk?" Will you pay the premium? Will the structure be used for business? Will part the structure be rented to others?
Other information needed is the amount of the deductibles and calculation of structure and contents replacement costs. Some item such as electronics, jewelry, coins, fine art, and guns have limit in basic policy. These items need to be covered by a rider to increased insured value. There are seven factors that determined the premium on a home owner’s insurance policy:
1) What is the overall condition of your house? Has it been painted recently? Is the yard picked up? Is the building in good repair? When was the roof replaced last? Is the wiring up to code? When was the plumbing update last? What does the fence look like?
2) What is the square footage of the structure-number of rooms?
3) What year was the structure built?
4) What material was used to build the structure?
5) What is the distance to the nearest fire hydrant or fire station?
6) What is used to heat the structure?
7) How many people live in the structure?
There are other factors that will affect your policy premium.
Is your home equipped with a burglar alarm system, carbon monoxide alarms? Dead bolt locks, and smoke alarms? This will reduce risk and protect your property. If you have an in-ground pool or trampoline the liability risk will increase unless fenced or access restricted.
Replacement cost coverage will replace you structure and contents to the same condition as they were before the fire or storm. A condition is that the structure coverage be 90% of the market value at the time of the peril. Keep your agent up to date on the value of your home so this condition is met.
A big part of the replacement cost coverage is to have an inventory of what items need to be replaced. The information needed is the item, the serial number, when purchased, value. Take pictures of rooms, closets, basement, and garage. Keep receipts of all purchases of $100.00 or more. Store pictures and receipt in a fire proof container.
Homeowner's insurance does not cover floods. If you are in a location which may be prone to flooding from storms or water runoff you may want to have flood insurance in addition to your home owners. Flood insurance would have covered most of the damage caused by the hurricanes and home owners would cover other risks subject to the limitation of the policy.
Home owners and flood insurance protect your most valuable possession and it deserves some attention so the coverage is adequate if a claim should need to be filed. The best way to save money of this coverage is to be sure the coverage will cover your next claim.
If you have read this article to this point, you have my congratulations. This is an area that is very seldom used but it can be one of the most important financial protections if a peril should be in your future.
To your financial success,
Martin Braddock
P.S If you have any friends or family that may be interested in making money work harder have them go to my website: [http://www.financialtechnician.com] for more information. Author e-mail: braddock.martin@gmail.com. E-A107
Home owners insurance is required on mortgaged property by the lender. This policy will cover the house itself but does not necessarily include all your personal property. Review you coverage to make sure all your property is adequately covered.
The insurance company will look at your claims history, employment history, current occupation, criminal record, and credit record. Other information needed is marital status, social security number, age, and previous addresses. Are you a "good risk?" Will you pay the premium? Will the structure be used for business? Will part the structure be rented to others?
Other information needed is the amount of the deductibles and calculation of structure and contents replacement costs. Some item such as electronics, jewelry, coins, fine art, and guns have limit in basic policy. These items need to be covered by a rider to increased insured value. There are seven factors that determined the premium on a home owner’s insurance policy:
1) What is the overall condition of your house? Has it been painted recently? Is the yard picked up? Is the building in good repair? When was the roof replaced last? Is the wiring up to code? When was the plumbing update last? What does the fence look like?
2) What is the square footage of the structure-number of rooms?
3) What year was the structure built?
4) What material was used to build the structure?
5) What is the distance to the nearest fire hydrant or fire station?
6) What is used to heat the structure?
7) How many people live in the structure?
There are other factors that will affect your policy premium.
Is your home equipped with a burglar alarm system, carbon monoxide alarms? Dead bolt locks, and smoke alarms? This will reduce risk and protect your property. If you have an in-ground pool or trampoline the liability risk will increase unless fenced or access restricted.
Replacement cost coverage will replace you structure and contents to the same condition as they were before the fire or storm. A condition is that the structure coverage be 90% of the market value at the time of the peril. Keep your agent up to date on the value of your home so this condition is met.
A big part of the replacement cost coverage is to have an inventory of what items need to be replaced. The information needed is the item, the serial number, when purchased, value. Take pictures of rooms, closets, basement, and garage. Keep receipts of all purchases of $100.00 or more. Store pictures and receipt in a fire proof container.
Homeowner's insurance does not cover floods. If you are in a location which may be prone to flooding from storms or water runoff you may want to have flood insurance in addition to your home owners. Flood insurance would have covered most of the damage caused by the hurricanes and home owners would cover other risks subject to the limitation of the policy.
Home owners and flood insurance protect your most valuable possession and it deserves some attention so the coverage is adequate if a claim should need to be filed. The best way to save money of this coverage is to be sure the coverage will cover your next claim.
If you have read this article to this point, you have my congratulations. This is an area that is very seldom used but it can be one of the most important financial protections if a peril should be in your future.
To your financial success,
Martin Braddock
P.S If you have any friends or family that may be interested in making money work harder have them go to my website: [http://www.financialtechnician.com] for more information. Author e-mail: braddock.martin@gmail.com. E-A107
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