Correct Procedures on Obtaining House Insurance
Buying a new house, you also need to consider about the insurance for your new house. Why?? This is because there are many benefits you coul...
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Buying a new house, you also need to consider about the insurance for your new house. Why?? This is because there are many benefits you could take by taking insurance for your new house. Beside protecting the house itself, the house insurance would also protect your property inside your house when the unexpected things happen. How could you obtain the house insurance? The process of obtaining the house insurance can be both complicated and easy, depends from which aspect you view it. Detail the procedures of obtaining house insurance, would be explained further as below.
Process
The process of obtaining house insurance ends when you select an insurance company and complete the insurance application. Getting to that point requires five steps that include arming yourself with information, developing an understanding of what homeowner's insurance covers, determining basic coverage requirements, deciding whether you need additional protection and getting quotes.
Getting Started
Gather information to help you determine insurance needs. Your real estate agent or attorney can provide direction in getting this information. Get a home inspection to determine the overall condition of the home and uncover any safety issues that may affect insurance costs. Find out what new construction building costs per square foot are in your area. Complete a home inventory to determine the dollar value of your personal possessions. Determine whether the home is in a floodplain, an earthquake zone or in an area prone to storms or tornadoes.
Identification
Develop an understanding of what house insurance does and does not cover. A standard homeowner insurance policy provides coverage in six areas. These areas include the dwelling, other structures on the property, your personal property and the contents of the home, loss of use, personal liability protection and medical payments..
Dwelling coverage covers the cost of repairing or rebuilding your home if it suffers damage from wind, hail, lightening or fire. It does not cover damages that result from earthquakes or floods.
Other structures includes detached buildings, such as a garage or storage shed. Standard policies usually limit coverage to 10 percent of the dwelling coverage. If you have $200,000 of dwelling coverage, the policy will include $20,000 coverage for other structures.
Personal property and contents coverage provides 50 percent to 70 percent of the dwelling coverage to replace personal property and your home's contents.
Loss of use coverage reimburses you for hotel, meal and living expenses incurred if you must leave your home while repairs or rebuilding takes place. Most policies limit coverage to 20 percent of the dwelling coverage.
Personal liability protection is lawsuit insurance set at an amount that usually does not exceed $100,000 per claim.
Medical payments coverage, also called MedPay, covers injury claims of less than $1,000. This coverage will pay medical expenses when the injured person does not want to sue you.
Dwelling coverage covers the cost of repairing or rebuilding your home if it suffers damage from wind, hail, lightening or fire. It does not cover damages that result from earthquakes or floods.
Other structures includes detached buildings, such as a garage or storage shed. Standard policies usually limit coverage to 10 percent of the dwelling coverage. If you have $200,000 of dwelling coverage, the policy will include $20,000 coverage for other structures.
Personal property and contents coverage provides 50 percent to 70 percent of the dwelling coverage to replace personal property and your home's contents.
Loss of use coverage reimburses you for hotel, meal and living expenses incurred if you must leave your home while repairs or rebuilding takes place. Most policies limit coverage to 20 percent of the dwelling coverage.
Personal liability protection is lawsuit insurance set at an amount that usually does not exceed $100,000 per claim.
Medical payments coverage, also called MedPay, covers injury claims of less than $1,000. This coverage will pay medical expenses when the injured person does not want to sue you.
Determination
Determine how much insurance you need. The most important determination is coverage for the dwelling. The Insurance Information Institute suggests that you multiply the square footage in your home by building cost per square foot to determine coverage requirements. If your home totals 2,000 square feet and the building cost is $120 per square foot, you would select $240,000 for dwelling coverage. Use this number to determine coverage limits for the remaining areas of a standard policy. Decide if you want to upgrade standard coverage and if you need coverage for items not included in a standard policy, such as flood or earthquake coverage.
Options
Insurance costs can vary so get quotes from a minimum of five companies before making a decision. Ask questions and make sure you understand what each policy covers and excludes. Find out what type of discounts each company offers and talk about ways to lower premiums. Create and use a checklist so you can compare findings.
Getting Started
Gather information to help you determine insurance needs. Your real estate agent or attorney can provide direction in getting this information. Get a home inspection to determine the overall condition of the home and uncover any safety issues that may affect insurance costs. Find out what new construction building costs per square foot are in your area. Complete a home inventory to determine the dollar value of your personal possessions. Determine whether the home is in a floodplain, an earthquake zone or in an area prone to storms or tornadoes.
Identification
Develop an understanding of what house insurance does and does not cover. A standard homeowner insurance policy provides coverage in six areas. These areas include the dwelling, other structures on the property, your personal property and the contents of the home, loss of use, personal liability protection and medical payments..
Dwelling coverage covers the cost of repairing or rebuilding your home if it suffers damage from wind, hail, lightening or fire. It does not cover damages that result from earthquakes or floods.
Other structures includes detached buildings, such as a garage or storage shed. Standard policies usually limit coverage to 10 percent of the dwelling coverage. If you have $200,000 of dwelling coverage, the policy will include $20,000 coverage for other structures.
Personal property and contents coverage provides 50 percent to 70 percent of the dwelling coverage to replace personal property and your home's contents.
Loss of use coverage reimburses you for hotel, meal and living expenses incurred if you must leave your home while repairs or rebuilding takes place. Most policies limit coverage to 20 percent of the dwelling coverage.
Personal liability protection is lawsuit insurance set at an amount that usually does not exceed $100,000 per claim.
Medical payments coverage, also called MedPay, covers injury claims of less than $1,000. This coverage will pay medical expenses when the injured person does not want to sue you.
Dwelling coverage covers the cost of repairing or rebuilding your home if it suffers damage from wind, hail, lightening or fire. It does not cover damages that result from earthquakes or floods.
Other structures includes detached buildings, such as a garage or storage shed. Standard policies usually limit coverage to 10 percent of the dwelling coverage. If you have $200,000 of dwelling coverage, the policy will include $20,000 coverage for other structures.
Personal property and contents coverage provides 50 percent to 70 percent of the dwelling coverage to replace personal property and your home's contents.
Loss of use coverage reimburses you for hotel, meal and living expenses incurred if you must leave your home while repairs or rebuilding takes place. Most policies limit coverage to 20 percent of the dwelling coverage.
Personal liability protection is lawsuit insurance set at an amount that usually does not exceed $100,000 per claim.
Medical payments coverage, also called MedPay, covers injury claims of less than $1,000. This coverage will pay medical expenses when the injured person does not want to sue you.
Determination
Determine how much insurance you need. The most important determination is coverage for the dwelling. The Insurance Information Institute suggests that you multiply the square footage in your home by building cost per square foot to determine coverage requirements. If your home totals 2,000 square feet and the building cost is $120 per square foot, you would select $240,000 for dwelling coverage. Use this number to determine coverage limits for the remaining areas of a standard policy. Decide if you want to upgrade standard coverage and if you need coverage for items not included in a standard policy, such as flood or earthquake coverage.
Options
Insurance costs can vary so get quotes from a minimum of five companies before making a decision. Ask questions and make sure you understand what each policy covers and excludes. Find out what type of discounts each company offers and talk about ways to lower premiums. Create and use a checklist so you can compare findings.
Getting Started
Gather information to help you determine insurance needs. Your real estate agent or attorney can provide direction in getting this information. Get a home inspection to determine the overall condition of the home and uncover any safety issues that may affect insurance costs. Find out what new construction building costs per square foot are in your area. Complete a home inventory to determine the dollar value of your personal possessions. Determine whether the home is in a floodplain, an earthquake zone or in an area prone to storms or tornadoes.
Identification
Develop an understanding of what house insurance does and does not cover. A standard homeowner insurance policy provides coverage in six areas. These areas include the dwelling, other structures on the property, your personal property and the contents of the home, loss of use, personal liability protection and medical payments..
Dwelling coverage covers the cost of repairing or rebuilding your home if it suffers damage from wind, hail, lightening or fire. It does not cover damages that result from earthquakes or floods.
Other structures includes detached buildings, such as a garage or storage shed. Standard policies usually limit coverage to 10 percent of the dwelling coverage. If you have $200,000 of dwelling coverage, the policy will include $20,000 coverage for other structures.
Personal property and contents coverage provides 50 percent to 70 percent of the dwelling coverage to replace personal property and your home's contents.
Loss of use coverage reimburses you for hotel, meal and living expenses incurred if you must leave your home while repairs or rebuilding takes place. Most policies limit coverage to 20 percent of the dwelling coverage.
Personal liability protection is lawsuit insurance set at an amount that usually does not exceed $100,000 per claim.
Medical payments coverage, also called MedPay, covers injury claims of less than $1,000. This coverage will pay medical expenses when the injured person does not want to sue you.
Dwelling coverage covers the cost of repairing or rebuilding your home if it suffers damage from wind, hail, lightening or fire. It does not cover damages that result from earthquakes or floods.
Other structures includes detached buildings, such as a garage or storage shed. Standard policies usually limit coverage to 10 percent of the dwelling coverage. If you have $200,000 of dwelling coverage, the policy will include $20,000 coverage for other structures.
Personal property and contents coverage provides 50 percent to 70 percent of the dwelling coverage to replace personal property and your home's contents.
Loss of use coverage reimburses you for hotel, meal and living expenses incurred if you must leave your home while repairs or rebuilding takes place. Most policies limit coverage to 20 percent of the dwelling coverage.
Personal liability protection is lawsuit insurance set at an amount that usually does not exceed $100,000 per claim.
Medical payments coverage, also called MedPay, covers injury claims of less than $1,000. This coverage will pay medical expenses when the injured person does not want to sue you.
Determination
Determine how much insurance you need. The most important determination is coverage for the dwelling. The Insurance Information Institute suggests that you multiply the square footage in your home by building cost per square foot to determine coverage requirements. If your home totals 2,000 square feet and the building cost is $120 per square foot, you would select $240,000 for dwelling coverage. Use this number to determine coverage limits for the remaining areas of a standard policy. Decide if you want to upgrade standard coverage and if you need coverage for items not included in a standard policy, such as flood or earthquake coverage.
Options
Insurance costs can vary so get quotes from a minimum of five companies before making a decision. Ask questions and make sure you understand what each policy covers and excludes. Find out what type of discounts each company offers and talk about ways to lower premiums. Create and use a checklist so you can compare findings.
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