A fire is a devastating tragedy if it strikes your home. The damage is severe and irreversible. That’s why a fire insurance is something that you should always get the moment you own a home. The insurance may not bring the valuable things that may get destroyed in case a fire erupts in your home but you would at least get compensation that will allow you to rebuild your life.
Insurance companies usually offer fire insurance policies so you wont need to do a lot of research just to get a fire insurance policy for your home. Ask the insurance representative that services your personal insurance policies if they also offer fire insurance. You may get better rates because you’re already an existing client.

Still paying mortgage on your home? You may want to consider having a Mortgage Life Insurance as a protection in case of death or permanent disability of the mortgagor. Another one is the Private Mortgage Insurance (PMI) to protect the lender in case the mortgagor defaults in his payments. This allows you to invest in a home with a lower down payment. Lenders generally require a PMI as a condition of obtaining a mortgage. For homeowners, the Homeowners Protection Act of 1998 has required the cancellation of PMI when the loan balance reaches a particular level. The government equivalent of a PMI is called a Mortgage Insurance Premium.

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A private company called Insurance Services Office based in New Jersey was formed in 1971 and issued a simplified homeowners policy which is used by insurance companies. It developed standardized homeowners insurance that made it easier for the public to compare offers from different insurance companies. The seven forms of homeowners insurance are:

HO-1 : provides coverage for specific items outlined in the policy.

HO-2 : is also a limited policy that covers specific parts of the house against damages, a list of such damages or “perils” should be provided in the policy.

HO-3 : usually called “all risk” or “open perils” policy, it covers all portions of the home, the structures and items inside. It is also inclusive of liability insurance for accidents that may occur inside the premises. Limits of liability and covered items should be clearly detailed in the policy to ensure proper coverage.

HO-4 : also called the “renters’ insurance” or “renter’s coverage” which covers the tenant’s personal belongings and includes a liability insurance.

HO-5 : this is similar to HO-3 but provides coverage on a wider range of incidents and losses.

HO-6 : also known a s Condominium Coverage, and caters to owners of condominiums, and provides protection for items and incidents not covered by the building’s blanket policy.

HO-8 : also called “older home” insurance where homes with higher replacement cost than the market value are insured at a lower market value rate.

Basic homeowners insurance do not cover damages caused by earthquake. A separate earthquake insurance policy may be purchased for this purpose, especially if you live near a fault line. Earthquake insurance costs vary depending on your location, the building materials used (wood can better withstand earthquake than brick), and the “age” of your home.

Californians buy the most earthquake insurance, but there are fault lines all over the US that caused insurers to worry. The New Madrid Fault runs through Arkansas, Kentuky, Missouri and Tennessee. The Insurance Information Institute predicts that the region will experience a 6.0 magnitude earthquake in the next 15 years. The eastern part of US may also encounter a major earthquake in the next 20 years.

Contents insurance differs from buildings insurance. Buildings insurance covers the main structure of the house. Contents insurance’s coverage includes your home’s contents and your personal possessions. These include a lot of things like furniture, carpets, appliances, equipment, videos, cameras, cell phones, computers, personal belongings, valuables, clothing, and food. They may ask you to point out items on the policy and you may be asked to add security provisions like alarms and locks if you live in an area where thieves thrive. Insurance policies will also cover your belongings when you’re away from home or you could request this cover separately.

Whether you are an existing homeowner or a prospective homebuyer, you should be aware of the coverage of your homeowner’s insurance policy.

Damages caused by the following are not covered:

- flood
- earthquake or land movement
- war
- nuclear-related events (explosion, leakage)
- “Acts of God” or other natural calamities

Repair and maintenance costs may not be fully covered, only a percentage of the cost will be paid by the insurance company.

Among those covered are damages caused by fire, wind. However, if damage is caused by events that are covered and not covered, and occurred at about the same time (e.g. fire resulted from an earthquake), this may not be covered if an anti-concurrent causation clause is included in the policy.

To know more about what is covered by a homeowner’s insurance, check out Insurance Information Institute.

(Image source: www.americanhomeip.com)

A lot of people prefer operating their business at home to save on office rentals and to spend more time with the family. Home-based business owners who already own their home do not worry about insuring their business, since they already have a homeowners’ insurance to cover it. However, yor home insurance may be invalidated if your home is used for business activities that are not declared in your policy. There are types of business insurance coverage you can avail of, depending on your business activities. This is in addition to the coverage of your homeowners insurance.

In cases of theft or damage to property, you can add a contents insurance to cover the equipment you use like computers, fax and printing , freezers, etc. Note that these equipment will be covered while these are in your premises. Mobile items like laptops should have separate property insurance.

If your have clients or deliveries over your home, you should get additional liability insurance. Relatives who visit and end up getting injured inside your premises will be covered by your homeowner’s policy, but clients or delivery boys who trip over and get injured will be covered by a separate liability insurance specifically for your business operations.

There are different types of business insurance, visit this site to know more.

Also visit www.iii.org for more insurance information.

(Image from www.allfreelance.com)

When it comes to contents insurance, the insurance companies vary in terms of coverage of property and possessions, which is why it is very important to choose which insurance policy and company would work best with you. Some policies would go to as far as changing your locks if your keys are stolen, however, some would pay for lost items but would not go as far as this. Some policies would cover the repair of even broken mirrors or doors in case of burglary, but some would pay only for the damages done on equipment, gadgets and appliances.

There are also policies wherein insurance companies increase the level of contents cover during special holidays (Christmas) or special occasions (weddings) should you have a lot of valuable gifts you will most likely have around the house.

It is always best and advisable to check with your insurance company on the schemes and conditions that you could make the insurance system work best for you. Like in every scenario, it is always better to prevent than to cure.

Along with the buildings insurance that guarantees your house will be under good protection is its partner in the safe-keeping of your home – the contents insurance. The contents insurance, which is self-explanatory, insures the protection of the contents of your home. All your worldly and valuable possessions are the primary reasons why such insurance was created.

The contents insurance covers every valuable thing that you own – including furniture, household goods, food and drink, television sets, video cameras, computers, stereo and sound equipment, gadgets, fitness equipment, clothes, jewelries and the like. The claims for this insurance are expected to be made after a burglary or a fire or any other untoward incident that your contents insurance are enrolled in. The insurance also pays if there are damages or vandalism done to your things, so the claims must be done immediately after the incident has occurred.

In buying earthquake insurance, you may want to consider the following in selecting the right plan:

- which structures does the insurance cover? (dwelling, garage, home extensions)
- will the policy also cover the contents of the home?
- will additional living expenses be covered if the house is severely damaged?
- what are the exclusions and limitations of the coverage?
- how much deductible should be paid before the insurance may be availed of?

Consider the costs of rebuilding your house and replacing broken items inside the house – your policy cover all these. Make sure that your rights in claiming are clear before signing the policy.