Home Insurance Daily Digest

Did you know that lighting up makes you pay higher home insurance premiums?

If you don’t, then now you do. While you may think it silly and ridiculous at first, there is some reason to it. Hundreds to thousands of fires have been caused by cigarettes that have been left lying around or have not been properly extinguished. And while you may call youself a “responsible smoker”, the fact still remains that you frequently light a fire inside your house, because no matter how small, all a fire needs to start is the smallest spark.

If you’re thinking of quitting the habit, then you might be able to apply for lower premiums. However not all insurance companies are understanding, and you may need to shop around for an insurance company that’ll listen to you when you get disapproved the first time.

Many of the same banks that suffered greatly due to the bursting of the sub-prime lending problem are now complaining about the lack of business from homeowners. Homeowners usually obtained home loans from them and is one of their more profitable money making products. Due to the lack of loans and with people still not buying homes even with rock-bottom prices, they are seeking blame for their troubles.
They seem to be getting a triple whammy from the home industry that started it all, caused continuing turmoil and is now giving them some more. Some banks withdrew from the lending business when the crisis began, while others stopped altogether, withdrawing and taking their business elsewhere. Now that they are again badly in need of sales, the very homeowners they turned back are not buying products leading again to low business causing them to panic. Life it seems is filled with perils from the left and right, angry consumers they once turned back may be exacting revenge on them or maybe they just have no money to do so?!?

Recession, the economic state many have been dreading to use and the government tried to avoid at all cost. The US and UK economy have fallen into the pit that is called recession which has many jobs lost and the economy stands almost still with money hard to find for all. That is why lawmakers in the US are moving for more governance and monitoring of the insurance industry which some economists see as the best indicator of economic stability.
The recent US Presidential Elections has offered some relief with the winning of President Obama who has taken office in what has been described as the worst economic conditions since the Great Depression. His decisions and fortitude will play out as Americans continue on hoping that his proposed change, brings prosperity into the country, ending the slump of the economy.

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Another way to conserve your hard earned dollars is to install a security system to your house. It could be a simple burglar alarm to a more sophisticated system as a deterrent to thieves. Installing safety features in your house like an alarm system or a fire prevention equipment like a sprinkler system or a fire extinguisher, could mean discounts in your premium payments from your insurance provider. You can also be entitled to lower monthly payments if: your house is located near a fire station or a fire hydrant, you own a relatively newer if not a brand new house, your house is made of fire resistant materials or you get your car insurance from the same provider. Since in effect, you will be getting two policies from them - the homeowners and car insurance policies, they will give you a discount.

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When buying insurance, it is very important to understand its coverage so there will be few ’surprises’ along the way. A standard home insurance does not cover damages caused by flood. If you think you need one, a separate flood insurance can be bought from your agent. Medpay is a usual part of your home insurance policy. If someone outside of your family was hurt in your house but does not want to bring the matter to court, Medpay will pay up to $1,000 for each claim covered by the policy. But if anyone in your immediate family is hurt, Medpay will not pay for it because a personal accident insurance is alo available from your health insurance agent. The insurance company will not pay the policy holder back everything he/she tells them they owned in case they lose their house without the proper documentation. They have to present proof of ownership like official receipts, brand of everything that was lost, model, make, date of purchase, complete with serial numbers and even pictures. To avoid all these, make a detailed inventory of all your things and keep it in a fire proof safe.

Understanding how your insurance provider calculated your insurance premiums is not as complicated as you think. If you want to understand the factors that determine your premiums, here are some of them:
1.Location – if you live in high-risk or high-crime areas, the risk that your home will be damaged or stolen from is significantly higher. This results in higher premiums. Also premiums in highly congested cities are generally higher compared to suburbs. Another factor that can affect your premium is your location’s propensity to be hit by natural disasters. If you’re house is lying on a fault line, or in locations that are prone to storms, this may cause your premium to increase.
2.Construction costs - some insurers will look at the construction costs in your area to see how much it would cost to rebuild your home if it were destroyed. The higher the construction costs are in your area, the higher the likelihood that you’ll pay for it in your home insurance rates.
3.Building materials – the materials you used to construct your home play a large part towards your home’s vulnerability. If you used brick or stone that is more durable and better able to withstand natural disasters such as fire, tornadoes or hurricanes, you’ll get a lower premium.

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In the United States, most home buyers have a loan of money in the form of a mortgage loan, and the mortgage lender at all times requires that the buyer acquire homeowners insurance as a condition of the loan, in order to protect the bank if the home were to be shattered. Anyone with an insurable interest in the property should be listed on the policy. In some cases the mortgagee will relinquish the need for the mortgagor to carry homeowner’s insurance if the value of the land exceeds the amount of the mortgage balance. In a case like this even the total destruction of any buildings would not affect the ability of the lender to be able to exclude and recover the full amount of the loan. The insurance dilema in Florida has meant that some waterfront property owners in that state have had to make that decision due to the high cost of premiums.

An association master policy is a single package policy which your townhouse association may get to ensure all the buildings and common elements within. It would be the best choice not to mention economically profitable. The policy can be covered three ways:
• Basic buildings including walls, roof, floors and elevators, but you will be responsible to insure appliances, cabinets, carpeting and any other items in your unit including wall covering and interior walls.
• Both the basic buildings and the items within your unit besides personal property.
• Both basic buildings including the improvements and fixtures by the owner of the unit.

Keeping your home insurance valid would require the home owner to take some responsibility in keeping the property in good condition. Failure to do so may mean a lot of consequences that may even lead up to non-payment of claims. Make sure that you take a look at your policy and see what are the responsibilities expected from you by the insurance company.

Here are some things that usually need preventive maintenance from time to time to keep that valuable home insurance valid:
1.Gutters must be clean and in good condition to prevent water seepage into the walls of the house
2.Make sure no dampness accumulates on your house which may lead to costly maintenance later on
3.Check condition of your roofing
4.If you have a chimney make sure that it is clear of blockages
5.Maintain integrity of external house paintwork
6.Check your insurance company’s policy on wall climbing plants
7.Prune and maintain trees on your property
8.Look out for nests, rodents and any other pests that can damage your property
9.Have your gas line checked regularly

There are some measures that can indeed make the difference between high and low premiums for homes. Having the best amount of security in terms of high-grade locks, security systems (alarms) and other measures such as security grilles to thwart burglars can be one. Installation of timed lights indoors and security lighting outdoors can also lower your risk along with responsible behavior such as not leaving the keys under the potted plant on the patio. You should also try to join neighborhood watches to make not only your house but the whole neighborhood safer for all. Smoke alarms at the required areas and even at recommended ones are nice (ask the local fire brigade where they would work best in protecting your home due tot he varied and different designs of each and every home). You could also ask the insurance to raise your participation so you shell out more money before you get them involved. And lastly, be sure to claim only when you need to avoiding trivial matters, for the more likely you are to claim again and again may show the provider you are not taking enough measures to manage your property. With these tips in mind, there should be some savings in terms of premiums and managing your risks is the best way of doing so.