Home Insurance Daily Digest

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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.

The common single large investment most people or family can make is their own house itself. With this comes the statement that an owner should protect his single possession, his liability, his home. He can only do that with an insurance policy of a homeowner.

This package policy is a combination of different insurance coverage packed in one policy. The coverages that are covered in the homeowner’s policy are the following:

• Dwelling and Personal Property
• Personal Liability
• Medical Payment, and
• Additional Living Expenses

The amount that you have to pay for a homeowner’s policy can vary from hundreds of dollars to thousands of it, depending on the insurance company.

Are you sure that your homeowner’s insurance policy carries all the characteristics that an insurance policy for homeowners should carry?

One of these said characteristics is the guaranteed replacement value insurance. All homeowner’s insurance policy is packed with this. It means that the house of the homeowner will going to be rebuilt after an event of disaster- no matter how much the cost can be.

Maybe you are thinking that a rebuilding after disaster is what would ideally happen anyway. It’s totally wrong. Substantially, property value has increased dramatically over the years. It will surely cost more to rebuild, reconstruct, or repair the house than when you purchased the property itself and the insurance policy.

Sometimes knowing what is not covered is as important as knowing what is covered by your insurance policy. The best reference for this is your insurance policy; make sure that you read through it completely before you experience a loss that to your surprise is not covered by your insurance policy.

Majority of home insurance policies place a limit on the coverage for some high priced or hard to replace items like engagement rings, antiques, fur, watches and other valuables. There is a need for additional floater or endorsement to protect these items and you need to get the appraised individually for accurate pricing.

One mistake you should avoid is getting under-insured. You should maintain sufficient insurance coverage so that in case of damage, done in whatever way, you will be covered in full. For example the replacement cost of your home is $100,000 and your policy coverage is only $60,000 the insurance company will only pay you $60,000 if and when your home is destroyed completely. You will be personally responsible for the $40,000 budget short. And the worse that can happen if you are under-insured and part of your home was damaged; it is possible that you will only receive partial reimbursement for the repair of the damaged part. The actual amount is dependent on how much under-insured you are.