Homeowners Insurance -- Understand Your Policy for Great Coverage at More Affordable Prices

Homeowners Insurance -- Understand Your Policy for Great Coverage at More Affordable Prices

Type of Home Insurance

First you need to understand the type of home insurance that you need. Traditional homeowners insurance protects a residence which is owned by the family that carries the policy. This type of insurance protect the building and contents, and also has some liability protection in case an individual is injured on the property. A homeowners policy may also provide some money to provide temporary housing in case the family has to move out while repairs are being made, or in case the home is not inhabitable.

On the other hand, if the homeowners lease out the property, they probably only need a landlord insurance which would protect the property, and perhaps provide liability protection. The landlords would not need to insure the contents because those items would be the responsibility of the tenants. Since the landlords do not live on the property, they would not need relocation assistance.

Tenants should purchase a renters insurance policy. A renters policy would protect the occupant's property in case of theft or damage. It can also provide relocation assistance if the property is not inhabitable. Of course, the renters insurance policy would not protect the building, since that is the owner's responsibility.

A condo owner may buy a policy that is similar to a renters insurance policy, even though they own the policy. The actual condominium association probably holds a policy to protect the actual building. So the condo owner only needs to purchase a policy that protects personal policy, provides some liability insurance, and covers relocation assistance.

Before You Buy Home Insurance, Consider A Few Simple Things For The Best Value

When you buy a home insurance, consider covering your belongings at replacement value. Otherwise, the insurance company will only want to repay you at “garage sale” prices. If you don't want to replace your computer and television set at a thrift shop, be sure and ask your agent about the value that is used to replace personal property.

Of course your rates will depend upon the area you live in. If your city has made a lot of damage or theft claims in recent history, an insurance company will charge more. Your own personal claims history matters too. Of course, the value of your home and property, and even your credit report, will affect the premiums an insurance company will expect you to pay.

You can take steps to reduce your policy too. Many insurance company offer discounts. Anti-theft devices and safety improvements can qualify you for a discount. Also, if you bundle more than one policy, often homeowners and car insurance, with the same company, you may get a substantial break. Be sure and shop around. You may find that you already qualify for discounts, or that you could take a few simple, inexpensive steps to earn discounts.

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