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Homeowners Insurance Basics

Published Tuesday, October 28, 2008 by bloggerblognet37044 | E-mail this post

Homeowners insurance is a contract between a homeowner and an insurance company. You agree to pay the premiums, and the insurance company to pay a set amount should a covered loss occur. Examples of things covered under a typical homeowners insurance policy might be fire, vandalism, or injury on your property. You will probably have a deductible to pay, and the policy probably has a maximum amount it will cover. So a standard policy insures the home itself and the things you keep in it.

Homeowners insurance is usually a package policy. This means that it protects your property, and it also protects you against liability claims of injury. This should also cover damage caused by household pets or thefts to items inside your home.

Some times of losses may not be covered by a standard homeowners policies. Incidents like floods or theft usually have to be covered under a separate insurance policy. If you run a business out of your home, you may need a different type of business liability and property policy because your homeowners insurance policy may have limits that are lower than your business assets are really worth.

If you have a mortgage, your lender probably requires homeowners insurance. However, even if you do not have a mortgage, you probably want to cover your home against damages and liability. If you want to save money on your homeowners insurance, shop around between the different local policies. You may also consider raising your deductible. The difference in premium cost between a $500 deductible and a $1,000 deductible can be considerable.

You also need to consider covering the replacement cost of your house and belongings vs. covering the actual worth. Your old TV may cost $500 to replace, but probably wouldn't bring more than $50 at a garage sale. If you don't want to shop for replacements at your local thrift shop, you may want to consider having a replacement value policy.

Other features of a homeowners policy could include housing assistance if you need to be displaced for a period of time while your house is being repaired. If you need to rent an apartment hotel room for several weeks, the costs could mount.

Learn more about different types of home insurance at http://www.247quoteus.com

If you want to save money, compare homeowners insurance online too!

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