Home Insurance

Home insurance also called hazard insurance or homeowner's insurance (often abbreviated in the real estate industry as HOI), is the type of property insurance that covers private homes. It's an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, it's contents, loss of its use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory. It requires that at least one of the named insureds occupies the home. The dwelling policy (DP) is similar, but used for residences which don't qualify for various reasons, such as vacancy/non-occupancy, seasonal/ secondary residence or age.

It's a multiple line insurance, meaning that it includes both property insurance and liability coverage, with an indivisible premium, meaning that a single premium is paid for all risks. Standard forms divide coverage into several categories, and the coverage provided is typically a percentage of coverage A, which is coverage for the main dwelling.

The cost of homeowner's insurance often depends on what it would cost to replace the house and which additional riders, additional items to be insured are attached to the policy. The insurance policy itself is a lengthy contract, and names what will and what will not be paid in the case of various events. Typically, claims due to floods or war (whose definition typically includes a nuclear explosion from any source), amongst other standard exclusions (like termites) are excluded. Special insurance can be purchased for these possibilities, including flood insurance. Insurance should be adjusted to reflect replacement cost, usually upon application of an inflation factor or a cost index.

The home insurance policy is usually a term contract, a contract that is in effect for a fixed period of time. The payment the insured makes to the insurer is called the premium. The insured must pay the insurer the premium each term. Most insurers change a lower premium if it appears less likely the home will be damaged or destroyed, for example: if the house is situated next to a fire station or is equipped with fire sprinklers and fire alarms, if the house exhibits wind mitigation measures, such as hurricane shutters, or if the house has a security system and has insurer approved locks installed.  Perpetual insurance, a type of home insurance without a fixed term, can also be obtained in certain areas, In order to save money on your homeowners insurance you have to consider several price determining factors. One of the biggest factors is whom your insurance provider ends up becoming. You should consider shopping around  in order to get as many price quotes as possible. Try to get at least three as a minimum. You can visit insurance companies directly: call them on the phone or search for quotes online. A side from price other factors you may want to ask about include customer service,

1. Complaint records and responsiveness
- Deductible : As with your auto insurance, raising your deductible can help save money on your homeowners insurance. The deductible is the amount of money you have to pay toward  a loss before your insurance company starts to pay a claim. Only consider a deductible amount that you can afford in the case of an emergency. Remember you are dealing with your primary residence so you want to be careful.
- Multiple Insurance : In many instances most insurance companies want more of your business. With that in mind they sometimes offer generous discounts if you have multiple insurance  policies with them. For instance your auto homeowners insurance policies.

2. Homeowners insurance policies
- Housing Improvements : By making some improvements to your house allowing it to become more weather, earthquake and other natural disaster resistant you can lower the amount you would have to pay on your house insurance bill.
- Rebuilding Costs : When deciding on how much insurance coverage you really need make sure to subs tract the land that the house resides on. Your land doesn't require insurance protection and having it as part of the basis for your insurance.

3. Need will raise your total cost
- Discounts :  Ask your insurance company if the offer discounts for security devices, fire alarm system, sprinkler system and other burglar devices. They may even offer senior discounts if you are over the age of 55. Ask if you qualify for any other discounts they may offer.
- Policy Limit : You want your policy to cover any major purchases or additions to your home. But you don't wand to spend money for coverage you don't need. However be careful about eliminating floater insurance. This insurance covers your valuable possessions such as your jewelry, Rolex watches and fut coats. Your computer equipment may also need a floater policy. Failure to have them could result in not receiving adequate reimbursement if those items are ever damaged or stolen.
- Location : If you really want to save money on your homeowners insurance then you need to make sure your house is built to withstand the natural weather occurrences that take place in your local area. Earthquakes, floods and fires behave differently in different parts of the country.
Hopefully this information can help you focus in on some areas within your homeowner's policy that you can review with your insurance agent in the hopes of actually lowering your house insurance rates instead of raising them.