Purchasing Homeowners Insurance
When purchasing homeowners insurance, it is important to concentrate on the physical dwelling. More than your possessions, living expenses, and liability, your primary focus should be purchasing sufficient coverage to replace your home in the event of a named peril. When calculating the coverage amount, do not base it on your home’s appraised value, which includes land costs. Instead, use the current per-square-foot replacement costs in your area, which can be provided by the local homebuilders association. In light of recent catastrophic events, which may lead to inflated labor and material costs, consider extended or guaranteed replacement policies if you live in a disaster-prone area. It is also important to know what perils are included in your policy.
NOTE: Standard homeowners policies exclude damage resulting from earthquakes and landslides as well as flooding.Read More
Will Your Homeowner’s Insurance Cover a Leak?
According to the Insurance Information Institute, most sewer system backups are not covered under a standard homeowners insurance policy. The typical homeowners policy will cover the damage resulting from a burst pipe or washing machine hose. It will also cover the rain damage that results when a hurricane lifts the roof off a house and lets the rain in. However, if a sewer or drain backs up, homeowners are only covered if they have a special endorsement. Moreover, if a home endures damage as a result of a rise in the outside water level (which includes rain runoff, storm surges, or overflowing rivers), homeowners policies provide no coverage. For this, homeowners must turn to flood insurance, a government-backed policy.
NOTE: Homeowners are responsible for the maintenance and repair of their main sewer line, which is the pipeline that runs between their house and the municipality’s sewer main.Read More
Learning About Exclusions
An insurance policy’s section on exclusions lets the policyholder know exactly what areas are specifically not covered by his or her insurance contract. Exclusions do not take anything away from the policyholder because the insurance company certainly does not charge a premium for coverage that it does not provide. In fact, exclusions eliminate exposures that the insurance company could not insure without charging prohibitive amounts of money. By taking careful notice of exclusions, policyholders can use the information to their advantage by avoiding gaps in coverage and purchasing additional protection. For instance, homeowners who astutely recognize the earthquake exclusion in their homeowner’s coverage can then obtain earthquake coverage through an earthquake endorsement.
NOTE: Common life insurance policy exclusions include acts of war, suicide, and engaging in certain dangerous activities.Read More
Steps to Take When Seeing an Ice Dam
While its true that the weather has been heating up considerably (about time!) there’s a chance there are still a few winter dangers lingering around your home. The one we’re going to focus on in this post is ice dams. Ice dams form when water from melting snow re-freezes at the edge of your roof line. That’s why it’s an important issue for this time of the season since there’s a lot of melting snow. Ice dams are harmful because they can trap water on your roof instead of allowing it to drain naturally. And this can lead to damaged roofs and leaks and generally things you should try and avoid.
There are some fairly easy steps to follow if you see an ice dam forming. First, you should make sure your downspouts are clear so that your gutters are able to do their job. And you can also remove snow from your roof (or have it removed) which will help prevent ice dams altogether.
For a more in depth guide on ice dams and how to deal with them you should visit the section Travelers dedicated to the problem here.Read More
What Does Your Homeowner’s Policy Cover?
While casual hobbyists can generally rely on their homeowners policies (which typically cover personal property up to half the value of their homes) for coverage of their collections, serious collectors with valuable collections should either have riders on their homeowners policies or specialty-insurance coverage.Read More
Have You Looked Into Renter’s Insurance?
With so many homeowners either being forced out of their homes or postponing their decision to purchase a first home during the past few years, more than the usual number are finding themselves renting. In the process, many seem to have overlooked the importance of purchasing renters insurance. According to a recent Insurance Information Institute poll, 96 percent of homeowners have homeowners insurance, but only 31 percent of renters have renters insurance. Perhaps renters without proper coverage mistakenly believe that their landlords’ insurance will protect them from loss. However, unless the owner’s negligence caused the loss, an owner’s insurance policy only provides coverage for the building and any property belonging to the owner. For everything else, renters need renters insurance.
NOTE: Renters insurance covers damage, theft, or loss of personal property, as well as personal liability coverage and damage to the apartment caused by a covered loss.Read More