Is Your Homeowners Insurance Policy Up-To-Date?
Residential coverage protects against damage or destruction of your house so in the event that your home is destroyed by a disaster such as a tornado or fire or any other loss that your policy covers, the insurance company will pay for repairs or completely replace your home.
It is vital to keep your homeowners insurance policy updated because the insurance company will only reimburse you for the insured amount of your home.
If your homeowners insurance was purchased over five years ago, the value of your home has probably increased since that time. However, without updating your policy to the current value of your home, the insurance company will pay only for the estimated loss as it was established when the policy was originally purchased. So if your home was insured for $300,000 and the value has risen to $500,000, the reimbursement amount paid by the insurance company would be short by $200,000.
Many homeowners that have to make a claim either do not have the proper homeowners insurance coverage or do not have enough coverage. Most good homeowners insurance policies today cover up to 120% of your dwelling coverage limit. But it is very important that you review the dwelling limit with your homeowners insurance agent at least every 2 years. Also remember that flood insurance coverage is never part of standard homeowners insurance policy. If you live in a flood prone area, you should seriously consider adding this coverage to your homeowners insurance policy.
You also have to take into consideration the replacement costs of your belongings throughout the home so you want to conduct a complete and accurate inventory in every room. One of the easiest methods to accomplish this is a video camera going room to room. But a digital or film camera will still suffice to jog your memory. It is much easier to document what you have than to try remembering everything when disaster strikes. It is best to store the video or photographic evidence off site. Use a relatives home or a bank safety deposit box. You may also want to invest in a small fire and water resistant safe to store these important documents.
Many people find that when disaster strikes, their homeowners insurance falls short. It’s possible that you may qualify for assistance from the FEMA (Federal Emergency Management Agency). The SBA (Small Business Administration) also provide disaster-assistance loans. Those people who qualify can borrow up to $200,000 for rebuilding and $40,000 for personal property replacement at very low interest rates for up to 30 years.
Since each homeowners insurance policy is different, you need to know exactly what is covered and what is limited or excluded. Call your agent to see if your homeowners insurance policy is current because you want to be sure you will receive 100 percent of the replacement cost. Don’t make the mistake of forgetting to look over your policy from year to year because doing so could cost you much more in the event of a disaster striking.
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because of the $787 billion economic stimulus measure that Congress passed, and the United States is “beginning to see signs of increased sales and stabilized housing prices for the first time in a long time.” At the same time, he said full-fledged recovery is months away, adding, “it will take patience.” He also said his administration was taking steps to make sure banks have money to lend “even if the economy gets worse.” Obama remains widely popular, but his administration has endured …
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Paul Lindberg is a freelance writer living in Utah with his wife and cats. For free” target=”_blank”>www.hometownquotes.com/index.cfm?action=affiliatehome1&affid=5976&camp=is”>free homeowners insurance quotes, visit HometownQuotes.com” target=”_blank”>www.hometownquotes.com/index.cfm?action=affiliatehome1&affid=5976&camp=is”>HometownQuotes.com.
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Posted by American Car Insurance on August 3rd, 2009 filed in homeowners insurance | 18 Comments »
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18 Responses to “Is Your Homeowners Insurance Policy Up-To-Date?”
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August 3rd, 2009 at 7:42 pm
whatever
August 3rd, 2009 at 7:52 pm
I’m not the one making stupid comments or the one desperate enough to resort to namecalling. I was just defending myself.
August 3rd, 2009 at 11:39 pm
??ur reply makes no sense to my comment
August 3rd, 2009 at 8:55 pm
They don't ask, but there is a good chance they will find out anyway. My aunt has a trampoline in her back yard, which is prohibited, but she figured no one would ever know. It went unnoticed until some teenager tried to dial a number on his cell and hit the front of her house. Her insurance company (along with his) came out to inspect the damage and saw the trampoline.
They also find out when the dog attacks someone in the neighborhood or gets loose and chases the mailman and a complaint is filed.
There are plenty of incidents that could take place that would cause the insurance company to come out.
August 3rd, 2009 at 9:17 pm
It really depends on how it breaks, what type of policy you have and the insurance company?
Some company's can even add riders to your policy to cover it.
Call you insurance company or ask your agent!
August 4th, 2009 at 4:13 am
Yes it does, it means you know that your just a modern brainwashed person ^^ You were being sarcastic to Shy, so I was making fun of your sarcasm! And since you didn’t understand my comment, maybe you really don’t know wtf you’re talking about.
August 4th, 2009 at 5:28 am
you are that theif
August 4th, 2009 at 2:01 am
I have to say, I support the insurance company on this one. They have to manage risk, and part of that risk the dogs people own. Unfortunately, there are quite a few really bad pit owners out there. Don't blame the insurance company, blame the irresponsible owners.
Besides, to make a comparison- a regular doc's malpractice insurance is about a fraction of what it is for a ob- have you ever wondered why there seem to be a larger number of docs getting OUT of the baby business? Used to, all gyns did OB, now, that number keeps dropping. Mostly because they can't afford to pay the insurance AND deliver babies. Are the insurance companies discrminiating against OB's?
August 4th, 2009 at 12:27 pm
like i said in my last comment, i understood ur reply but its stupid and childish, so spare me ur retarded comments, u retard
August 4th, 2009 at 4:12 pm
If I’m the idiot, then how come you’re the one who doesn’t understand?
August 5th, 2009 at 10:22 am
Go the the taxing authorities homepage for your county (Google it). You can look up the average taxes on the homes for the neighborhoods you are considering.
August 5th, 2009 at 6:39 pm
like i said, ur sarcasm dosnt make sense with my comment, ur an idiot
August 5th, 2009 at 9:16 pm
Well at least you know the truth…
August 5th, 2009 at 4:39 pm
You need to call an insurance company for quotes, start with your auto insurance company & go from there. There are many questions, what does the master policy cover? You would need to read the condo bylaws to find out. Does that policy cover everything attached to the unit or only to the studs? Does it cover anything that you add to or alter in the unit? So, you would purchase a condo policy (HO6 form), you would need to find out from the condo association what you actually need to cover. That would be the dwelling limit you need. Then you need to tell the insurance company how much contents coverage you want (if you had to replace everything you own), then get at least $500,000 liability, $5,000 medical payments & get $50,000 (or the company maximum) loss assessment (this covers if you are assessed for damages to common property – simplified definition – you would need to speak to an agent to explain it to you). You would also need to tell the agent the deductible you want (property coverage).
Good luck in your purchase but no one here can give you a quote.
Homeowners insurance is always an annual policy.
August 5th, 2009 at 6:47 pm
The more available you are to potential customers, the more likely you will get to quote them. I know that when I am attempting to buy something, I partly base my decision on how easy it is to get ahold of someone.
August 5th, 2009 at 10:44 pm
If I were you, I'd look into two things in particular:
First is a mortgage disability policy. You would probably want to take out this policy on both you and your husband. This will help to cover mortgage payments if you or your husband are injured and unable to bring in income.
I'd also look into life insurance policies on each of you. If your husband were to pass away, would you be able to continue making mortgage payments on your own? Would you choose to move? If not, life insurance is a must.
August 6th, 2009 at 7:36 pm
Yes very much so. Certain breed's of dogs will void a home owners insurance policy. This is based usually on vicious breeds who tend to generage alot of liability claims. It states this clearly in your policy. If your friends looks at her HO3 policy she will see which specific breeds will cancel her policy. Also many HO3 policies place exclusions against trampolines & swimming pools.
If she chooses to keep the dog – she will have to go through an excess/surplus company to get her homeowners insurance. She will pay about 3x the amount she was paying prior. Its up to her if the dog is worth keeping.
August 7th, 2009 at 3:10 am
Thank you for running into each other instead of an innocent person who is following the rules.
You stand as much chance as your homeowner paying the bills for your accident as there is that your auto insurance would cover your house burning down.
If that's not plain enough, NO.
Which ever of you was at fault in the accident owes the other for all damages.