Homeowner's Insurance Frequently Asked Questions
Owning a home can be a sound investment for the future, but it is not without risk and responsibility. Once you purchase your home, you will want to protect it, as well as your personal property within the home. By purchasing a homeowner's insurance policy, you can protect yourself against financial loss in the event of a disaster or damage to your home.
Other People Are Reading
-
What Is in a Standard Homeowner's Policy?
-
Depending on where you live and what company you use for your homeowner's insurance, a standard homeowner's policy will include four basic coverage items: coverage for the physical construction of your home, coverage for your belongings inside your home, coverage for living expenses in case of a disaster that requires you to vacate your home and liability protection in the event that you are sued or someone is injured on your property.
Does My Homeowner's Insurance Cover Flooding?
-
Standard homeowner's insurance does not include flood damage, but you can purchase flood insurance, either as an add-on to your policy through your insurance agency or through the National Flood Insurance Program. For many homeowners, flood insurance is optional, but if you live in a designated flood zone, flood insurance is typically a necessary expense.
-
How Do I Pick an Insurance Company?
-
There are several factors you can consider when looking for a company to provide your homeowner's insurance. If you already have another type of insurance, such as automobile or life insurance, you might choose to request a quote from that company. Many companies offer discounts for people who have multiple policies. There are independent rating agencies, such as Moody's and Standard & Poors, who evaluate insurance agencies based on financial strength, service and other factors. Finally, you want an insurance company that makes you feel comfortable. If you prefer face-to-face service, for instance, you may opt for a local agency versus a large provider that offers phone and email support.
Should I Purchase an Umbrella Liability Policy?
-
Purchasing an umbrella liability policy is a personal consideration. Basically, an umbrella policy protects you in the event that you are sued. This coverage protects you against any judgments against you once your underlying coverage is used up. For individuals with a high level of personal wealth, the low cost of adding an umbrella policy is worth the protection. A $1 million umbrella policy typically costs between $150 and $300 per year.
How Do I File a Homeowner's Claim?
-
There are rules that you must follow in the event that you need to file a claim against your homeowner's insurance policy. First, if there has been a crime committed (for instance, if your home has been vandalized), you must report it to the police. Contact your insurance company immediately once you know you need to file a claim. Ask questions and request the appropriate forms that you need to enter your claim. Take pictures and document the damage, and make a list of lost or damaged articles and their values; you'll need to include this information when filing.
-
References
- Photo Credit Brushfire behind houses image by Marta Reimpell from Fotolia.com
