Reasons For Home Insurance
Posted by US Home Loans | Posted in Home Insurance | Posted on 29-09-2009
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Home insurance; do you know when you’ll need it? Probably not. Unless you plan on getting involved in an insurance scam (which is not recommended), chances are you won’t know exactly when you will need home insurance until after the event has occurred. That’s because home insurance protects you against unforeseen events. But what are these unforeseen events that cause us to need home insurance? The fact of the matter is there are a number of different insurable events that come into play with your home insurance.
Below are a few events where having home insurance is a very positive thing. They are events that you can’t always plan for and when they occur, can throw you and your home into disorder.
Fire
Fire can destroy your home right before your eyes. All it takes is a spark from a faulty appliance or the lights on the Christmas tree to malfunction and before you know it, you’re home’s going up in flames, along with your personal belongings. Even if you’re very safe about ensuring the integrity of your electrical appliances and are diligent about turning off the oven, the bbq grill, and the coffee pot, fire can still strike. A stray firecracker or lit cigarette butt can land in your yard, ignite dry brush, and start a small fire that can quickly get out of control. In fact, many fires happen when residents aren’t even home; and when they come home, their home is destroyed.
If you have a homeowner’s insurance policy that covers fire damage, you’re protecting yourself when an unexpected fire breaks out.
Flood
Even if you don’t live near a body of water or in a flood zone, flood damage can affect your home. If a water main busts or the dishwasher malfunctions, you could end up with a house full of water and serious flood damage. Home insurance protects you when water takes over of your home and runs amok on your carpets, walls, and ceilings. If a main water line breaks when you’re not home, and it’s left to flood the house for hours, the damage can be significant. And if you live in an attached condo complex, the damage can seep over into the neighbor’s home. Having a home insurance policy that covers flooding will protect you, and your attached neighbors, against unexpected flood damage as a result of a broken water line, a malfunctioning dishwasher, or even a popped waterbed.
Earthquake
We all wish we could predict earthquakes. It would allow us time to secure items in our home that could be damaged when the shaking starts. But currently, earthquakes come unannounced. And when they do arrive, they often damage our homes and property. Even if the home is still standing after a significant quake, the structural damage to the home could be so great that it is red tagged and deemed uninhabitable. Having a home insurance policy that covers earthquake damage will save you the agony of being left with nothing after an earthquake.
Homeowners insurance is a must for all homeowners. Regardless of where you live and the types of natural disasters your area is prone to, you need to protect yourself from every angle and against any unforeseen events that could happen in the blink of an eye.
For more articles on Home Insurance visit: http://www.bills.com/reasons-home-insurance-article/
Watch the video related to home insurance
After having their homes reduced to ash, California homeowners are finding that insurance giant Allstate had underinsured their homes — making rebuilding a near impossibility. Sandra Hughes reports. … sandra hughes allstate insurance fire california
Help answer the question about home insurance
How do u get insurance on a 2nd home/ vac property?We are in escrow buying a 2nd home (vac property) and are having a hard time trying to figure out what type of home insurance we need to get. Our current company is saying we need commerical insurance if we are going to rent it out. Whats the difference between them? We arent sure if we will rent it out. Help…?
Well, when it's with the same company, it's all about policy retention – if you have both your auto and homeowners with the same company/agent, you're more likely to renew them both, with the same company. If you only have one, the other agent is going to try to take that other policy from you.
Regarding a homeowners discount for homeowners, that really is a loss ratio thing. If you can be responsible enough to manage to own a home, then that responsibility generally translates into driving slightly more responsibly, or at least having fewer claims dollars paid out.
You CAN get the credit just as equally, though, with a RENTERS policy as with a homeowners policy. Usually, that credit is a percentage of the premium.
Insurance companies don't worry about how, or why, there are fewer claims with home ownership – just like they don't worry about how or why with credit scores, marital status, gender, etc. The how or why isn't relevant. All that's relevant, is that there is a direct corrolation between those items, and claims. The reasons behind it are irrelevant.
Fraud, rise in natural disasters, prices of lumber etc for rebuilding homes, cost of living, the land values increase making the home more exspensive to replace. As far as indvidual states, I dont know any specifics.
jajajajajaj !
http://best-home-insurance-comparator-usa.blogspot.com/
Here you can get quotes from different home insurance companies in your area, its the best way to find an affordable home insurance with a reliable company.
Insurance companies are wary of lapses in any kind of insurance policies. In your case it just happened to be home insurance.
The single most feared factor in the insurance business is not hurricanes, not bush-fires, not wars, not meteor strikes but what's known as 'moral hazard'. Moral hazard is, in simple terms, lack of inhibition in preferring a claim under less than above-the-board circumstances.
For example, if your camera is insured for home use only, you cannot make a claim if the insured camera suffers damage during a jungle safari. Most of us, being honest persons, would not even want to claim under such circs. However, since, as a rule it takes all kinds to make this world, there exist individuals who would make a claim as if the damage occurred at home. Such individuals are considered to be 'moral hazards'.
Coming back to your original question, insurance companies know from empirical evidence that the incidence of moral hazard is greater – much greater – in those cases where there's a break iin coverage. It's likely that the insured is trying to renew the policy after a loss has occurred.
You need to provide evidence to the insurance company that you did not intend to let the policy lapse. That it lapsed, is a fortuitous happenning (please note the wording – underwriters love such language) and not a deliberate omission. 'I do not want to be penalised for something over which I had no control' is the line you need to take. You could strike lucky with this line.
lol that was kinda wierd
It depends on what state you are in. Some states won't allow a homeowners policy to be cancelled for claims, some will. ALL states will allow you to be cancelled, if you have a hazardous condition, and won't fix it.
Examples of hazardous conditions would be, owning a dog that's bitten someone, owning a trampoline, having an unfenced pool, having junk laying around your yard, not replacing your roof when it gets too old, not removing dangerous trees, not putting a railing on your porch, etc.
Some states will allow cancellation if you file more than one claim in three years. You'll have to discuss it with your agent.
Slash is my hero. Axl: big things DO come in small packages.
The length of time you have a credit account ADDS points to your score for every year. Additionally, for every two consumer initiated credit checks in six months, your score gets DECREASED by 20 points (mortgage is the exception – all mortgage inquiries within a 30 day period are treated as ONE inquiry).
Because of that, if you shop out your Mastercard every six months, to four different vendors to get the cheapest rate, and switch it over, you get ZERO points added, and 40 points taken away. Also, all those store cards where you "get 10% off if you open an account now" ding you 10 points a pop, if you add those dings to the shopping out the mc dings. All those 90 days same as cash deals, those are actually CREDIT ACCOUNTS.
So even if you carry a zero balance, have 10 store cards with $1,000 available each, two major credit cards with $5,000 each, you aren't getting any POSITIVE points added, but you have $15,000 available credit to subtract from your potential income.
Now, if you go to a company like Travelers, they WILL look at the raw data, and make exceptions – overridding credit score for "common sense". But that's the only company I know that makes exceptions like that.
If I were you .. . I'd cancel all the store credit cards. Stop shopping around the Visa/Mastercard, stick with one and keep it. Pay off the balance each month. And lastly, look for a small, regional insurance company that works through independent agents – try another agent! – for a quote without credit scoring, or an underwriter review.
Also, go pull a copy of your credit report (free at http://www.annualcreditreport.com) and cancel all those zero balance, open accounts! It could make a HUGE difference.
I'm not sure I completely understand your question, but I will say this…..
The best place to research reason why & how much liability insurance you should have is YOU. Are you married with kids? Do you have assets? What's your salary like?
Generally, the higher your salary and the amount of assets you have determines how much liability insurance one buys.
Look at it like this…if you kill someone in an auto accident, do you want someone taking your home & garnishing your wages?
The smart thing to do is carry a PUP policy (personal umbrella) and those limits START at 1 million. And they're cheap too.
KJA is correct.
1. You need to speak with the agent regarding your policy and what "changed". It may be that the change was necessary to comply with your mortgage company. However, he has to notify you of things like that. If it is not necessary and you don't want it, they will need to take the charge off your bill.
2. Contact your mortgage company to see if there is any money left in escrow to cover the additional cost if it is necessary. They will also need to take that into account to properly collect your escrow.
If you can afford the payments, buy the house. There are many plusses and significant tax advantages. Be sure you don't pay more than the fair market value. Also, make sure you get a fixed rate loan.
You must also have some funds available for emergency repairs to heating, cooling, plumbing, electrical, and/or roof.
Well this happens alot in Florida, since its the Hurricane Capital.
Many people were dropped by their home owners insurance companies. When this happens the only thing you can do is look for another insurance company. There is nothing you can do if they chose to pull out of the area or not renew your home owners insurance. Florida has a group insurance policy, which means everyone that falls into a area or zone that there is no insurance coverage then the state will provide insurance for you. Normally at a higher rate of course.
good luck