Home Insurance

When buying a home, one word you will hear often is "insurance." As a homeowner you are concerned about protecting your house, your personal belongings and your personal liability. It is important that the coverage you choose provide the comprehensive protection that you need. If you are obtaining a mortgage, you do not have a choice of having Home Insurance. It will be a stipulation of the Bank.

Homeowner's insurance protects you and your house against losses from fire, theft, liability, vandalism, water damage, wind damage, tornadoes and loss of use, depending on the perils you choose.

Some of these policies offer optional guaranteed replacement cost coverage on your home and its contents. Replacement cost coverage will pay to rebuild your home and replace its contents with no depreciation coming into play.

It is important to understand that the replacement value of your home is based on your insurance company's estimate of the cost to rebuild your home on your property. It is not based on the purchase or appraised value of the home. Most policies have a built-in annual increase of replacement cost coverage.

Reducing Premiums

When purchasing homeowner's insurance, there are ways of lowering your premium. Most insurance companies offer discounts for fire extinguishers, dead bolt locks, and whole-house alarm systems. If your home is fairly new, or if you elect to insure your automobiles with the same company, you are likely to receive a discount on your premium.

Another way of lowering your premium is to select as high a deductible as you can afford. Raising your deductible reduces your premium.

Insurance is the type of service you buy hoping that you will never have to use it. The right insurance can give you a sense of security in knowing that you are adequately protected.