|
What is homeowners insurance?
Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it.
Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets. Damage caused by most disasters is covered but there are exceptions.
|
|
FREE Home Insurance Newsletter & Guide |
|
|
The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners' responsibility.
What is in a standard homeowners insurance policy?
Generally, speaking a standard homeowners insurance policy includes four essential types of coverage. They include:
- Coverage for the structure of your home.
- Coverage for your personal belongings.
- Liability protection.
- Additional living expenses in the event you are temporarily unable to live in your home because of a fire or other insured disaster.
Are there different types of policies?
Yes. A person who owns his or her home would have a different policy from someone who rents. Policies also differ on the amount of insurance coverage provided.
The different types of homeowners policies are fairly standard throughout the country. However, individual states and companies may offer policies that are slightly different or go by other names such as “standard” or “deluxe”. The one exception is the state of Texas , where policies vary somewhat from policies in other states.
What type of insurance do I need for a co-op or condo?
If you have purchased a condo or co-op, the bank will require insurance to protect its investment in your home. You may, however, need more insurance to cover your personal items, liability or fees that may be charged to you regarding shared areas of the building like the lobby.
You will need two separate policies to protect your investment:
- Your own insurance policy. This provides coverage for your personal possessions, structural improvements to your apartment and additional living expenses if you are the victim of fire, theft or other disaster listed in your policy. You also get liability protection.
- A "master policy" provided by the condo/co-op board. This covers the common areas you share with others in your building like the roof, basement, elevator, boiler and walkways for both liability and physical damage.
What types of disasters are covered?
Most homeowners policies cover all disasters listed below, but it is safer to check with your insurance company.
- Fire or lightning
- Windstorm or hail
- Explosion
- Riot or civil commotion
- Damage caused by aircraft
- Damage caused by vehicles
- Smoke
- Vandalism or malicious mischief
- Theft
- Volcanic eruption
How much coverage is “enough”?
Most people find that "enough" means a sufficient amount to rebuild their home. Remember that the foundation and the land are not covered under the policy and therefore will not figure into an insurance settlement. When determining the replacement cost of your home do not use the sale price, the tax assessment or the value the mortgage company calculated. All these can vary greatly from the construction costs. Also, if your home is non-standard, such as a home with unique features including ornate or hand-carved woodwork, stained glass windows, etc., make sure you bring this to your agent’s attention. These are considerations that might not be addressed in a standard homeowners’ policy replacement valuation, unless you bring it to your agent’s attention prior to the underwriting of the policy. If you don’t, you may discover you are underinsured when you have a claim. You should also evaluate your personal belongings and ask your agent about the options for covering these items. Finally, most homeowners’ policies include personal liability protection.
What is the difference between actual cash value, replacement cost and modified replacement cost?
Replacement Cost is the amount to repair or replace the damaged property using materials of like kind and quality, without deduction for depreciation. Depreciation is the loss of value that develops as an item ages or wears. Actual Cash Value is the replacement cost of an item, less the amount for depreciation. A new option available to consumers is modified or functional replacement cost. At the time of a loss, modified replacement cost will restore the home to a functional condition. This may mean that unique features in your home prior to a loss will be replaced with items that serve the same function, but are not aesthetically the same.
Following a loss, how can I prove my ownership of household belongings?
If the actual receipts are not available, insurance companies generally will accept photos, warranties, owners manuals, cancelled checks, credit card receipts, bills, servicing agreements, even video tapes, as proof of ownership. We suggest that you consider video taping your home before a loss.
Do I have to switch insurance companies in order to get a lower premium rate?
Not necessarily. First review your policy. You might be paying for coverage you don't need. For instance, you might have coverage on a snowmobile that no longer runs.
Also be sure you're taking advantage of discounts, including reduced rates to members of qualified groups, organizations, trade associations and some credit unions. Installing fire detectors, home security systems and heavy duty locks also can help lower costs. Lastly, consumers older than 55 might qualify for separate discounts.
Can insurers access my claims history with other companies?
Yes. About 90 percent of insurers submit claims information to the Comprehensive Loss Underwriting Exchange database. The claims information is generally kept for three to five years and available to participating insurers.
|
|
|
|
Quality home insurance information is hard to come by these days, let alone expert advice on financial topics that can effect your every day lifestyle. The advice in these newsletters is local, its professional, and its usable. If you have any questions, you can also Talk to an Expert about your situation. So sign up for the newsletter or contact us and we'll find the best expert in central Ohio to fit your needs.
Dont forget....You'll not only get this initial guide to home insurance, you'll also get our monthly newsletter that targets your needs and interests, giving you advice and strategy on how to manage your financial condition, grow your personal wealth, and put you on the path to total financial independence. Expert advice from local experts for you the central Ohio consumer- oh, and its FREE.
Why you should sign up for our FREE Home Owners Insurance Newsletter...
Quality information is hard to come by these days, let alone expert advice on home insurance that can effect your every day lifestyle. The advice in these newsletters is local, its professional, and its usable.
Whether you are looking into home owners insurance options, just bought a new home, are a first time home buyer, or are just looking to get a better understanding of homeowners insurance this newsletter will give you the information you need have before consulting with a homeowners insurance professional. You will learn about the following topics that affect your home insurance plan and much more as part of your FREE consumer newsletter:
- How much home insurance do you need? We'll look at all the determining factors and show what may be the best route for your home insurance needs.
- Credit Scoring. The secret to insurance costs might be buried in your credit report. "Insurance Credit Scoring" is a whole new ball game that changes all the rules. We'll give you the info you need to understand how credit scoring is affecting your homeowners insurance.
- Extra / Special Needs Coverage. We'll show you areas that you might want to consider covering for your own personal homeowners insurance needs that you may not have considered.
- How does insurance work for you? We invest a lot of time and energy into researching insurance options, but how wisely do we actually use the coverage? Here are some key ways to get the most out of your homeowners policy
Become an Educated Consumer and sign up for your free homeowners insurance newsletter today.
|
|
***Please note all information we collect at RightWay is held in strict confidence. We do not sell or share our customer list with any other entities under any circumstances. |
|
|
 Can't find what your looking for? Go to our article archive and check out some of our past articles. You can also sign up for a newsletter:
Article Archive
Newsletters
|
|
|
Free consultations with pre-screened to the most stringent standards, we connect you with a professional that is selected specifically to match your needs.
|
Can't Find it? Go to our article archive and check out some of our past articles. article archive
|
|
 |
|
Financial tips, tricks, guides, and expert advice from local professionals. Learn how to plan for your future and for your financial health.
|
|
|
|
Finance: Losing the Right to Sue (Reuters)
Reuters - More and more businesses are
sticking mandatory arbitration clauses into their contracts,
forcing consumers to give up their right to sue if they want to
conduct business, and consumer groups have made the elimination
of these clauses a top priority.
Consumers Tighten Borrowing in August (AP)
AP - Consumers cut back on their borrowing in August by the largest amount since the end of 1990 as confidence in the economy fell and energy prices surged.
Mortgages Rates Around U.S. Up This Week (AP)
AP - Mortgage rates around the country went up this week, with 30-year mortgages climbing to the highest level since early September.
U.S. 30-, 15-Year Mortgage Rates Rise (Reuters)
Reuters - Interest rates on U.S. 30-year and
15-year mortgages edged higher this week amid signs the economy
is improving, stoking inflation concerns, mortgage finance
company Freddie Mac said on Thursday.
Fannie Mae CEO Criticizes Regulatory Probe (AP)
AP - At turns defiant and emotional, Fannie Mae's top executive denied that the mortgage giant's manipulated its earnings and questioned an investigative report of the company's accounting practices as factually deficient regarding a key allegation.
Ex-Fannie Mae Worker Discusses Harassment (AP)
AP - For accountant Roger Barnes, the final straw came when he was deliberately excluded last fall from Fannie Mae's preparation for a special review by federal regulators.
Fannie Mae Execs, Regulator Square Off (Reuters)
Reuters - Fannie Mae executives and their
regulator squared off on Wednesday, with executives denying any
accounting irregularity and the regulator saying the housing
finance company's management may have to go.
Home Mortgages (AP)
AP - Home Mortgages
Camden defends price in Summit deal (TheDeal.com)
TheDeal.com - The REIT says the $1.9 billion price tag for Summit Properties is justified by the target's portfolio.
House OKs Bill to Shield GIs from Abusive Sales (Reuters)
Reuters - Legislation to protect U.S. soldiers
from predatory life insurance and mutual fund sales on military
bases was approved overwhelmingly on Tuesday by the U.S. House
of Representatives.
Fannie Mae CEO Facing Storm Over Lapses (AP)
AP - Franklin Raines is renowned for his political connections and his instincts for corporate survival. Those skills will be critical as the head of Fannie Mae fights to keep his job following an accounting scandal at the mortgage giant that finances one of every five home loans in America.
Bio Details on Fannie Mae Chairman (AP)
AP - NAME — Franklin Delano Raines.
Choose Natural Resource Funds Carefully (AP)
AP - Predictions that already-lofty oil prices have nowhere to go but up have many investors eying the lucrative energy sector, but the choppy nature of crude's most recent run underscores the volatility of natural resources.
Freddie Mac Announces Changes in Division (AP)
AP - Mortgage giant Freddie Mac announced Monday that it is shutting down some operations of its debt-securities sales division and transferring others — moves that experts said should tighten the company's internal controls after an accounting scandal.
Freddie Mac Shuts Bond Broker Business (Reuters)
Reuters - Freddie Mac , the No. 2 U.S.
mortgage finance company, said on Monday it will no longer
serve as a broker dealer in the multi-trillion-dollar mortgage
bond market, a move some said is designed to lower risk and
placate regulators.
What Did Fannie Mae's Leader Know? (AP)
AP - Corporate spin can be a powerful thing. Just ask Fannie Mae's investors.
The Non-REIT (Forbes.com)
Forbes.com - Low bond yields make real estate investment trusts look like a great income play. But Michael Winer, manager of the Third Avenue Real Estate Value Fund (assets: $1.3 billion), sees something better for investors: real estate operating companies.
Justice Dept Opens Fannie Mae Probe (Reuters)
Reuters - The Justice Department is
investigating possible accounting fraud at Fannie Mae, bringing
greater government scrutiny to bear on the mortgage finance
company, already facing a parallel inquiry by the SEC, a source
close to the matter said on Thursday.
Justice Dept. Opens Fannie Criminal Probe (Reuters)
Reuters - The Justice Department has opened an
investigation of possible accounting fraud at Fannie Mae, the
Wall Street Journal reported on Thursday, after a federal
regulator said the mortgage giant may have manipulated its
earnings targets.
EPA Names 'Best Commuter' Companies (AP)
AP - Intel Corp., Fannie Mae and Cisco Systems Inc. top a new listing the government plans to offer each year rating companies on the benefits they offer commuting employees.
Fannie Mae Discussed Restatement with SEC (Reuters)
Reuters - Embattled U.S. mortgage finance
giant Fannie Mae on Tuesday said it had discussed the
possibility of an earnings restatement with regulators,
reversing a top executive's comment.
All 50 States Post Personal Income Growth (Reuters)
Reuters - U.S. personal incomes rose 1.5
percent in the second quarter of 2004, the fastest pace of
growth in more than three years, as income gains sped up in 33
states, the Commerce Department said on Tuesday.
New Home Sales Jump 9.4 Pct in August (Reuters)
Reuters - U.S. new home sales jumped a
surprising 9.4 percent in August, the fastest acceleration of
sales in almost four years, as a fresh dip in mortgage interest
rates attracted buyers, a government report showed on Monday.
Fannie Mae Said Near Deal on Capital (Reuters)
Reuters - Embattled mortgage finance giant
Fannie Mae was close to a deal with regulators late on
Sunday that would force the company to keep billions of dollars
more in cash on hand while it corrects accounting problems, a
source familiar with the negotiations said.
Fannie CEO May Not Withstand Challenge (Reuters)
Reuters - The vaunted political and financial
skills of Fannie Mae Chief Executive Franklin Raines may not be
enough to save him professionally after a scathing regulatory
report last week detailed pervasive accounting lapses at the
mortgage finance company.
Lawsuits Besiege Fannie Mae on Accounting (Reuters)
Reuters - Fannie Mae , under fire from
regulators, is facing a groundswell of lawsuits from
class-action specialists for billions of dollars in stock
losses stemming from the company's faulty accounting.
Snow: Fannie Mae Needs Regulator (Reuters)
Reuters - The latest troubles at Fannie Mae
, the No. 1 U.S. home funding company, show the need for
a truly independent regulator to cover government-sponsored
enterprises, U.S. Treasury Secretary John Snow said on Friday.
Fannie Mae Slides on Accounting Issues (Reuters)
Reuters - Fannie Mae shares fell as much
as 3.5 percent on Friday, bringing losses for the week to about
16 percent, as investors grew wary of potential widespread
accounting problems at the No. 1 U.S. housing finance company.
US August Home Resales Fall 2.7 Percent (Reuters)
Reuters - Resales of U.S. homes fell 2.7
percent in August, decreasing more than expected as mortgage
interest rates picked up in the early summer, a trade
association report showed on Friday.
Some Debt Is OK (The Motley Fool)
The Motley Fool - Not all debt is alike -- and not all debt is bad. It's very reasonable to carry a mortgage, a car loan, etc. You simply need to pay attention to the cost of the debt. If you're carrying revolving debt on a credit card that's charging you 18% per year, you're in a bad situation. If your student loan is costing you 7% per year, that's much less worrisome.
Dentsply Is More Than a Mouthful (The Motley Fool)
The Motley Fool - Investing genius Peter Lynch liked to say that to find "tenbaggers," that is, stocks that will increase in value by 10 times or more, you should start by looking close to home. In his book One Up on Wall Street, he also noted he liked to seek out companies in dull, disagreeable industries because they were often overlooked or shunned, giving individual investors a chance to purchase them at a discount.
Stocks Sink on Oil Prices, Morgan Stanley (Reuters)
Reuters - Stocks fell sharply on Wednesday after
oil prices jumped more than a dollar to over $48 a barrel and
investment bank Morgan Stanley reported a drop in its
quarterly profit.
Surprise! Housing Starts in August Rise (Reuters)
Reuters - U.S. housing starts unexpectedly
rose 0.6 percent in August to their highest level in five
months as low mortgage rates encouraged construction, but
permits fell more than anticipated, a government report showed
on Tuesday.
Housing Starts Rise Unexpectedly (Reuters)
Reuters - U.S. housing starts rose
unexpectedly by 0.6 percent in August to their highest level in
five months as low mortgage rates encouraged residential
construction, but permits fell more than anticipated, a
government report showed on Tuesday.
Pound recovers against the dollar (AFP)
AFP - Sterling stabilised against the dollar in the wake of a series of data showing a slowing in mortgage lending in August -- further evidence that the housing market is cooling as higher interest rates take their toll.
Goldman: Rival bid for Takefuji? (TheDeal.com)
TheDeal.com - A report says Goldman Sachs has made a bid for the Japanese consumer finance giant, challenging Newbridge Capital.
Debt Wish (Forbes.com)
Forbes.com - If it were only so. Web sites are proliferating that promise they can wipe off your credit card debt, your mortgage and even your car loan. And if you're feeling guilty about doing it, they give you plenty of justification: The banking system is a fraud, they say, the Federal Reserve is a sham, and the American dollar is worthless paper.
Retirement Loans: Is the Interest Deductible? (The Motley Fool)
The Motley Fool - As you already know, interest expense isn't deductible simply because it's interest. Any of you who have paid interest on a credit card know that to be the case. In order to be deductible, interest must be defined as deductible in the Internal Revenue Code. For example, interest that you pay on your home is defined as mortgage interest. Interest that you pay on funds used to purchase investment assets would be deductible as investment interest. Interest that you pay on credit cards is completely nondeductible.
BBVA buys Hipotecaria Nacional (TheDeal.com)
TheDeal.com - The deal will give the Spanish bank a 26% share of Mexico's private mortgage market.
Goldman Sachs offers to buy stakes in Japan's Takefuji (AFP)
AFP - US investment banking giant Goldman Sachs has offered to buy stakes in Japan's biggest consumer finance firm Takefuji Corp. for more than 300 billion yen (2.8 billion dollars), a report said.
Goldman Sachs Enters Fray for Takefuji (Reuters)
Reuters - Goldman Sachs Group Inc. is in talks with
the founding family Takefuji Corp., the biggest player in
Japan's $100 billion consumer finance industry, that may result
in the U.S. firm buying about a third of the company for more
than $2.7 billion, a financial source said.
The Finer Points of Finance (The Motley Fool)
The Motley Fool - NS: Most people know that Bankrate (Nasdaq: RATE - News) compiles rates for CDs, home equity loans, credit cards, mortgages, and other popular products. But some may not be aware that the company actually tracks data for over 310 product categories in over 400 markets (both numbers have expanded recently). Can you list a few of the more unusual products that you follow?
BBVA takes another bite of Mexico (TheDeal.com)
TheDeal.com - The Spanish bank will buy Hipotecaria Nacional, a specialized mortgage lender.
Jefferson Pilot Financial CIO Chuck Cornelio: Rigorous ROI (NewsFactor)
NewsFactor - As executive vice president of technology and
insurance services for Jefferson Pilot Financial, Charles C. Cornelio is responsible for I.T., insurance legal, government relations, customer service, claims, licensing, contracting and commissions. Jefferson-Pilot Financial is one of the nation's largest shareholder-owned life insurance companies.
SCH set to buy Abbey as HBOS drops out, EU gives all clear (AFP)
AFP - Spain's Banco Santander Central Hispano (SCH) moved closer to winning control of the British mortgage bank Abbey National after HBOS backed away from a rival bid and European Union regulators gave SCH the green light.
HBOS abandons Abbey takeover ambitions, clears way for SCH (AFP)
AFP - HBOS said it had decided against bidding for the British mortgage bank Abbey National, clearing the way for an agreed offer from Spain's Banco Santander Central Hispano (SCH).
Doubts circle Abbey bidders (TheDeal.com)
TheDeal.com - HBOS and other potential bidders for the British mortgage bank will soon need to put forward their offers.
You Can Avoid Probate (The Motley Fool)
The Motley Fool - There are many ways to avoid probate, and you'd be best served by reading up on the topic of estate planning and then consulting a professional. In brief, though, one way to avoid probate is through a living trust or a life estate trust. With a trust, you're actually formally transferring the title of various properties to your heirs before you die. You retain control over it while you're alive, but it technically belongs to the trust. Once you die, a trustee passes it on to your specified heirs. This tends to be a fairly quick and simple process.
|
|
|
| |
|
Get the Free Home Owners Insurance Newsletter from local experts! 