Like other form of insurance, home insurance will give protection against a potential loss as a result of some risks. The risk includes the home that may be destroyed or damaged by natural causes, burglarized, or other event that makes a loss. Nowadays, there are many people who insure their homes. If you want to insure your home, it is better for you to learn about the insurance. This article contains basic information that you need.
Generally, an insurance company will use independent agents, exclusive agents, or direct market sales to sell the products. Independent agents represent some companies and can present a number of quotes at once. Exclusive agents only sell product of one company. Direct market sales are done through internet via phone or mail. There are many choices to find insurance agent. Some people get recommendation from their relatives, friends, or neighbor. Your friends may have gotten great quote from the insurance agent, but it does not grant you will get similar treatment. You should also make sure that the agents are fully licensed. Unlicensed agent may endanger the opportunity of having your claims paid.
You need to know that there are many factors that will affect the assurance process. It determines the premiums that you pay. Each home insurance company has certain rules. Different company charges different premiums for same coverage. Your coverage will kick in if you experience a loss caused by peril that your policy covers. According to most policies, the covered perils include smoke, fire, hail, wind, lightning, explosion, snow, rain, trees or falling things, theft, heating, and sprinkler system. The choice that you make for insurance coverage will also affect the premiums. There are also other factors that will determine your premium, like: the cost to reconstruct your home, the age & condition of your home, closeness of your home to services and sources, the risk of outdoor amenities, and the pets that you have. The insurance agent will help you to estimate the replacement cost with the information of your home along with its contents. The premium is commonly higher for wood frame homes than homes that are mostly brick. New and good condition homes require lower premium than older and poor condition homes. A swimming pool and playground equipment that can cause injury will also affect the premiums.
The homeowners have many choices in determining the types of policies that they need. There are also some ways to earn discounts so you can drive down your premium costs. You can get discount by selecting higher deductible. Having higher deductible can help you to submit fewer claims and save money on insurance premium.You can save up to 25% by increasing the deductible from $500 to $1,000. Several insurers offer discounts for the customers who want to keep the different kinds of insurance in similar carrier. A home insurance company might give 5% and 15% for having two or more policies. It is better for you to join with one insurer. Some insurers provide 5% discounts for those who stay with them from 3 to 5 years and 10% if they stay for 6 or more years. Many insurers commonly will give a 5% reduction in premiums if you have safety devices in your home. You can put a burglar alarm smoke detectors, and deadbolts. Anyone who installs better burglar alarms and sprinkler systems can get discounts of up to 15–20 percent. Try to make your dwelling more disaster resistant. You can give workable storm shutters to the windows, attach earthquake brackets to remain heavy stuff from toppling, install smoke detectors, and remove old trees that may fall over your house.
After the first trial period, the home insurance companies may give you a reason for cancellation. The first trial period is commonly 60 days from the day of policy opening. Cancellation means that the insurance company or you stopped the coverage before normal expiration date of the policy. The expiration date is usually 12 months from the opening of the policy. If the insurance company want to cancel your policy, there must be a notice. The number of days is various by state, but it is generally 30 days. If the insurer or you cancels the policy, the company can refund a part of your premium. The reasons include nonpayment or late of premiums, giving fraudulent information on your application, the modification to the property that can cancel the policy, and willfully ignore the safety of the property that may increase the risk. The insurer will also give notice (usually 30 days) before choosing not to renew your policy. Nonrenewal means the insurance company declines to renew your policy when it is expired. The companies usually have the right to decline renewing your policy. Do not forget to ask for the reason of nonrenewal to the insurer.