If you own a home, homeowners insurance is essential. It will
protect the tremendous financial investment you are making
by paying for part or all of the replacement costs in case
your home is destroyed. There are different levels of homeowners
- HO1: Specifies perils with very limited coverage.
- HO2: Specifies perils with less limited coverage.
- HO3: Covers all the perils on buildings and specified
perils on personal property excluding the risk of floods,
earthquakes, wars, and nuclear accidents.
- HO4: Covers renter's personal property loss but not residence.
It also covers limited liability.
- HO6: Covers condominium owner's personal property loss
and the loss of the use.
When deciding on the amount of coverage to buy, insure for
at least the cost to replace (not the replacement value which
can be far too low) because it most likely will worth more
than what you paid. Be aware that items such as collectibles
and home office equipment may require additional coverage.
Ways to Save on Premiums
- Raise your deductible. The larger the deductible, the
greater discount you may get. Just make sure to keep an
emergency fund to cover any losses.
- Secure your home with a home security system.
- Shop around for a lower rate if you own a newer home
because it is usually less expensive to insure than an older
- Inquire about senior discounts if you qualify.
- Consider buying group policies through a company or an
- Insure your property and liabilities through one company.
- Compare quotes from several companies.
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