Introduction to Home Insurance

By: Tom Heath

Home insurance is a necessaryprecaution one must take when owning a home. If you purchase home insurance youpay a decided premium to have your house insured and protected. Some homeownershave lower premiums to pay because their homes are in safe areas and lesslikely to be affected by a disaster. For example if your house is situatedright across the street from a fire station, you’re not going to have expensivehome insurance to pay for!

Most homeowners areinterested in home insurance when they want to mortgage their house. Many banksand other financial lenders will require homeowners to get their house insuredbefore mortgaging their house. It is the way the bank protects themselvesfinancially if the house gets destroyed or damaged. However, the level of homeinsurance required for the bank is not necessarily sufficient for you sincethey are only protecting themselves in case of?an accident or disaster. The level of home insurance needed for amortgage usually covers the house itself and not your personal belongings.Also, many home insurance policies do not cover your home in the event of uniquenatural disasters such as flooding, tornadoes and earthquakes unless it islisted in your policy. If you want to be covered under such circumstances it isbest to purchase special home insurance packages such as flood insurance.

Liability insurance protectsyou against lawsuits in the event that you or your family cause property damageto your neighbour’s home. It also covers situations in which a guest or visitorendures any injuries while on your property.

When applying for homeinsurance, make sure you carry along your detailed information such as maritalstatus, occupation and employment history, criminal history, credit andinsurance history, etc. The insurer will also take a look into the homeinsurance claims you’ve made in the past. The factors to determine your premiumare also based on the age of the house, the square footage of the property, thelocation, the number of rooms, and the materials used to build your home. Theinsurer also looks at the overall condition of your home and the number ofpeople residing in it when determining the premium for your home insurance.

If you want to save money onyour home insurance inquire about multi policy insurance plans such as homeinsurance, car insurance and other plans combined which give you a greatdiscount. It is a good idea to incorporate safety and security features intoyour home such as fire extinguishers, smoke detectors, sprinkler systems, and aburglar alarm to bring down the premium for your home insurance. Don’t waittill a disaster occurs and till you have to make a claimComputer Technology Articles, to understand yourhome insurance policy and what the coverage entails.

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