Introduction
Home insurance is a form of property insurance that deals with private homes. It is a contract which is in cause for a certain period of time. This insurance home strategy combines several personal insurance safety's that comprise of losses that occur in a persons home, content, living expenses or even loss of additional personal possessions. It also includes liability cover for accidents that occur at hands or at the home of the person insured. At least one person who is named as the insured is expected to occupy the home. The cost of insurance home is the amount that would cost the owner to replace the home and additional items that are insured. These things should included in the policy. A policy is a document that states what will and will not be compensated in case the said events occur. The insured pays premium to the insurer in terms for a certain period of time. Most insurers charge a low premium if it seems less likely for the home insured to be destroyed or damaged.
History
The initial home owners came from the united states and were introduced in 1950. However, the same policies had been in existence in great Britain and other areas of USA. During the forties, the insurance laws of USA were changed and many statutes were written. This allowed the home owner policies to be legalized. Before the 1950's, there were different policies for different perils that could affect a home. Therefore, a home owner could have acquired different policies for different perils that could affect his home. Policy forms were developed making it possible for home owners to acquire all the policies they required. These policies were not only hard to comprehend but differed according to the insurance home company's. There was a high need for consistency that a certain private company, New Jersey came into operation in 1971 in order to offer information about risk and it made a simple homeowner policy that they resold to the insurance home company's. These insurance policies have been amended over the years.
Features
Loss of Use:
When your home is being renovated, this cover provides you with the money for a rental or hotel. You are allowed to claim for extra living costs that you incur during the said period. This is done by filling a document showing the cost you incurred so that you can be reimbursed.
Personal Property:
This cover will pay for the destruction theft or damage of the insured belongings up to the policy limitations which is normally at 50%. A request can be made for a higher limit. Valuables like art work usually have a different policy limit known as a sub-limit.
Dwelling:
Covers for cost of repair or replacing your home as a result of any spoilage or ruin by a covered loss. Structures that were attached like patio covers and garages are also part of the dwelling coverage. The insurance home company is going to determine the limit of the policy according to the kind of construction and square footage.
Liability:
If someone sustains an injury because of your own negligence, this coverage is going to compensate the injured person for his hospital bills, pain and suffering. The injury must not necessarily occur within your home, but also, it cannot be as a consequence of an act that was intentional. If you are charged because of a loss that is covered, compensation is provided for by this liability coverage.
Medical Payment:
This insurance home coverage pays the medical bills for one who gets injured while at your home, irrespective of your own negligence.
Limits and Exclusions:
Many homeowner policies do not include mold damage and earthquake.
Tips and comments
- Maintain a proper Security System. Ensure that you put up an alarm that is monitored for 24 hours and has ties to the police station near you. This helps the homeowner to lower his annual premiums. For the homeowner to get discount, he must provide evidence of central supervision in form of a contract or bill.
- Raise the Deductible. Like car insurance or health insurance, if the deductible is high, the premiums are going to be low. The problem arises when smaller claims and problems like broken windows that will typically cost less dollars to fix, are wrapped up by the owner of the home.
- A homeowner should look out for discounts in order to save premiums.
- Before constructing additional buildings, the homeowner should consider cost of materials that will be used e.g. wood is more expensive to insure. Steel or cement on the other hand is less costly.
- Homeowners should ensure that their mortgages are paid off on time. This way, their insurance home premiums will be less.
