Saturday, November 2, 2013

What is Home Insurance?

So, you've finally decided to settle down and buy yourself a home. You've chosen the home you want but don't know anything about home insurance?!? Well, here's your chance!There are many different types of home insurance policies you can choose from. It is important to know all of your options and what is available to you in order to ensure you are fully covered. As each policies differs, be sure to read in full any home insurance application that you consider. The most important thing in getting your home insured is to correctly know the percentage of your home that you want to insure. This is the cost involved in setting up your home from scratch if, for any reason, it was to be demolished or destroyed. It is recommended that you insure your home for at least 80% of this total cost of rebuilding.The two main types of home insurance coverage's are building insurance and contents insurance.Building InsuranceThis type of home insurance is purchased for the protection of the structure of your home. The amount that the house is covered for is the amount it would cost to rebuild your home. This is not necessarily the market value of your property, or the purchase price. In order to know this value, you can get a professional property evaluation. This kind of insurance covers the cost of your external accommodations should you choose to rebuild till your home is good to move back into.Contents InsuranceThis type of home insurance covers the possessions inside and around your home. God forbid, if any occurrences such as: theft, damage due to broken water pipes, and natural disaster damage occur, this is the insurance you will need. Your possession property will also include areas such as porches and patios, so make sure to consider these property sections when detailing your valuables. Better safe than sorry!In order to be eligible for contents insurance, you will need to document all of your valuables. Take the time to survey each room separately, creating a list of anything of value. It's a good idea to make a video recording of your house, and of the things you wish to include on your list. Keep these documents in a safe place. Please note that items of extreme value, such as antiques and expensive jewelry, may need to be covered with an extended home insurance. It's a good idea to select the highest deductible that can afford. It is possible to get policy discounts for items such as security systems, burglar alarms, deadbolt and window locks, and sprinkler systems. If you have all your policies issued from one company or are a senior citizen, many home insurance companies will offer you discounts - so keep that in mind. If you are insuring a new home, or have never made an insurance claim before, you should also be eligible for a home insurance discount. After you decide which policy suits you best, consult your local insurance agent for more information regarding the various discounts available. Last but not least, be sure to read the policy details and be aware of the rules and regulations governing the insured items.

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