"Home Owner's Insurance - How You Can Save Money!"
Everybody knows that homeowner's insurance can be expensive, especially if you live in Florida, where after several hurricanes caused so much damage to Florida homes, some insurance companies doubled their rates, and some companies have gone on to ask for another increase in the last year, as much as 28%. In January 2007 a new insurance bill was passed, but it remains to be seen how much Florida residents will save on their homeowner's insurance at this point. Many other States have also seen increased rates due other catastrophes, fire, and wind damage. This is why it is important to learn how to reduce your costs when it comes to insuring your home. It is necessary for you to learn what sort of coverage you need and also what you don't need. This free report is also designed to give you money saving tips to help you reduce your insurance costs.
First of all, let's talk about Home Owner's Insurance and the different types available.
Since buying a home is one of the single largest investments you'll most likely make, it is
necessary to protect that investment.
Most standard homeowner's insurance policies provide coverage for damage to your
home, and a lot of the items in your home caused by:
• Theft
• Smoke
• Fire and Lightning
• Ice and Snow
• Frozen Pipes
• Wind Damage
It can also provide coverage for liability claims, medical payments to third parties, and
even legal expenses if you are sued by someone. It's very important to read your policy
before any event occurs to find out exactly what sort of coverage you have. Most
insurers exclude flood or earthquake coverage for instance, although you may be able to
purchase special policies that will cover these things.
There can also be limited coverage for very high priced items, or items that would be
hard to replace. Therefore additional endorsements or floaters will be needed to protect
items such as jewelry, antiques, and other valuables.
Mortgage lenders require you to purchase a minimum amount of insurance, which is
usually equal to the appraised value or purchase price of your home. This does not
mean this will be enough to rebuild your home, so you may want to consider insuring it
for the re-build value.
Something else to consider when purchasing insurance is whether you will be
reimbursed the "cash value of an item minus the depreciation" for the years you have
owned the item, which can significantly reduce your reimbursement; this could leave
you wondering how you'll ever be able to replace that item at today's costs. Or, you can
insure for "total replacement costs", which is more expensive but you would be given the
full value of the item at today's prices.
0 comments: