Insurance premiums for your home’s protection vary depending on your home’s location, building materials, and other details that you need to know if you want to have an affordable premium with the benefits that you need.

Generally, insurance for homes located in a flood-prone area (a high-risk area) will cost more, or a separate flood insurance may be availed of for better coverage. A house located near a fire department may cost lower than that in a remote area.

Building materials also affects insurance costs, since cost of repair varies for different materials used even if the damage was caused by the same incident.

Discounts are offered by insurance companies for homes with smoke detectors and other kinds of security alarms and devices.

If you sign for additional riders on your insurance, expect to pay more. It is advisable to ask your agent to explain all the details and benefits to make sure you are not purchasing an item you don’t need.

(Image source: www.bbcoverage.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)

Aside from the actual structure of your house (your dwelling), other structures on the insured property is covered by your homeowner’s insurance. Personal property such as furniture, appliances and clothing are also included. You may avail of additional coverage for jewelries and other expensive items. Accidental injury or property damage you are liable for is covered by liability insurance. For events where your home is severely damaged and you need to live elsewhere, your additional living expenses will also be covered. For other events such as floods and other “Acts of God”, a separate policy is needed and premiums for such coverage is usually higher that the basic coverage.

To learn more about home insurance coverage, visit:
Farmers.com
Insurance Information Institute

(Image source: www.alpinelakes.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.

If you prevent your home from being vulnerable to natural disasters like hail, windstorms, earthquakes, fires and floods, you would protect your home and possessions and save a lot on premiums. You could do this by reinforcing your roof, buying stronger roofing materials and adding storm shutters. In earthquake prone areas, you could make your home earthquake proof by refitting it. You could also consider upgrading your electrical, heating and plumbing systems to reduce fire and water damage. You could also ask your insurance agent what more steps you could take so that your home will be resistant to damages.

Deductibles are payments toward a loss before your insurance company pays a claim. The higher your deductible, the more money you save on premiums. Most insurance companies require a deductible of at least $500 but if you raise it to $1,000 you could save up to 25%. If you are in an at-risk area, your insurance may have a separate deductible for specific kinds of damage. For example, if you live in a state where hail storms are common, you will have a separate deductible for hail, or if you live in an earthquake-prone area, your earthquake policy has a deductible.

Let us look at the other side of the coin. After finding out that insurance companies are able to increase profits by cheating and shortchanging its clients, homeowners are also capable of filing false or bloated claims and get away with it. Fraudulent acts on the part of the homeowner include arson, a fake burglary, staging an accident, submitting a false claim or inflating the amount of claim, or filing a claim that has been paid for by another insurance provider.

Insurance companies have their own in-house investigators, and these companies also partner with government and non-government organizations that focus on prosecution of insurance criminals. Some of these are:

National Insurance Crime Bureau
Insurance Fraud Bureau
Insurance Fraud Investigators Group
Quackwatch http://www.quackwatch.com/
International Association of Insurance Fraud Agencies, Inc.

(source)

The place where you live affects the cost of your contents or buildings insurance. Here are some tips that will help you decide where to live and decrease your home insurance premiums:

Avoid flood risk areas, especially if they are low lying. If your house is at an at-risk area, it would be harder to insure and it will have a higher premium for flood claims. Check the crime rates in the area. A higher crime rate causes a higher premium. Urban homes costs more expensive to insure than rural homes. Find a property where you can park your car in a garage or off-street parking lot. This will help decrease your car insurance premium.

By protecting your home from theft and damage, you could prevent needing to claim your home insurance and reduce contents and buildings insurance premiums. Here are some tips to keep you and your home safe:

1. Keep your valuables safe. Store them away from plain sight.
2. Fit a burglar alarm. If you life in an area where thieves are rampant, insurance may require you to install one
3. Acquire a safe.
4. Check your door locks and see if they are strong.
5. Put locks on your windows. These may reduce your premiums.
6. Install a gravel surface so that if anyone is nearby, their footsteps will be heard.
7. Install a smoke alarm
8. Keep a fire extinguisher ready.
9. Cancel the newspapers so they wouldn’t accumulate on our doorstep and tell no one is home.