For many of us our home
is our most valuable possession. The time to think about the unthinkable
disaster is before it happens to you. If your home were damaged or
destroyed, insurance can help you repair or rebuild your home and replace
The main purpose of
insurance is to protect you against losses you cannot afford. Few people
have the financial resources to rebuild their homes. In addition to
protecting your home and possessions, homeowners insurance also provides
liability coverage to protect you from financial ruin if someone is
injured on your property and sues for damages.
A homeowners insurance
policy consists of coverage for your dwelling and your personal property.
It also includes liability insurance which pays for injuries to other
people or damages to their property accidentally caused by you, your
family or your pets. You also can buy several types of additional insurance
for property that is not listed in your homeowners policy or for perils
not covered — such as flood — for which you need a separate
policy. You do this by either buying a separate policy or by adding
an endorsement or rider to your policy.
Tips for Keeping
Your Rates Low
There are some simple
steps you can take to reduce your homeowner’s premiums.
- Raise Your Deductible - A deductible
is the amount you pay before the insurance starts to pay for your
loss. Since the purpose of insurance is to pay for the losses you
cannot afford, raise your deductible to a limit that you could
handle in case of a loss.
- New Home - If your home is less
than 10 years old, you may be eligible for a new home discount.
- Make Your Home Safer - You may
be eligible for a discount if you have a burglar and fire alarms
systems and/or sprinkler systems. Monitored systems will earn a
bigger discount than unmonitored systems.
- Construction Material - When
you buy a home, look for fire-resistant construction, such as brick,
masonry or rock. You may pay a lower premium for hail-resistant
roofs, such as those made of concrete tile, while wood roofs may
bring a surcharge. Check the location of the nearest fire department,
and avoid buying in floodprone areas. Non-Smoker Discounts