If buildings insurance covers the main structure of the house, what does it not cover? Here is a list of common exclusions to buildings insurance:

1. General wear and tear, corrosion, mechanical/electrical breakdown
2. Computer viruses or loss of computer data
3. Damage resulting from acts of terrorism
4. War, invasion, act of foreign enemy, hostilities whether war be declared or not, civil war, rebellion, revolution or military/usurped power.
5. Radioactive contamination from nuclear fuel or nuclear waste.
6. Radioactive, toxic, explosive or other effect of any nuclear equipment.
7. Loss of value of an item following the payment of a claim
8. Some types of chemical or biological pollution or contamination

Insurance companies offer many types of discounts but not the same discount or same amount in all states. Example of this is discounts for retired people. Since they stay at home more than working people, they may spot fires sooner and be less likely burglarized. They may have more time to maintain their homes. If you’re retired and at least 55 years old, you are eligible for a discount of a maximum of 10% at some companies. Some employers and companies administer group insurance programs that may offer a deal that you would find better compared to other insurance programs.

If you shop around for insurance, you could save a lot. Check online sites, ask friends, check Yellow pages, contact state insurance department Also check online insurance quote services, insurance companies and consumer guides. Check the stabilities of the companies with rating companies. By doing so you will get an idea of how much insurance costs and you could choose what you can afford. But take note that cheap doesn’t mean good. You must demand quality service and talk to insurers to know what exactly to expect from your insurance. After that, you could ask them what they would do to lower the costs of your premiums.

Home warranty insurance is insurance that is acquired by the builder and issued to the homeowner. This kind of insurance is used to protect them against loss due to non-completion, defects and breach of statutory warranties by the builder. This is needed because it motivates builders to do their work well and the consumer to trust the builders’ work. This is required by law and only effective if a builder becomes insolvent, disappears or dies before finishing the house or fixing defects in the house. This doesn’t cover contractual disputes or defective work by a builder who is in business.

To make taking your claim easier, keep your policy documents in a safe place and your policy number and claims line number easily accessible. You could call them anytime of the day and the paperwork can be done quickly while talking on the phone. If you’re properly insured, you will be provided with a brand new item but there are a few exceptions to this. However if you need to make a claim, be sure that it’s honest because if you exaggerate, the insurer will refuse and cancel your policy. You may also find it harder to get insurance in the future.

Research the most common insurance claims in your area. This will give you an idea on which perils are most likely to occur, and then purchase an insurance covering such perils. Taking an insurance that covers all threats may be impractical.

Make sure your home and the surrounding landscape is safe, since insurance claims decreases if the insurer finds that the area is unkept, landscaping is not done right or is left unfinished. Deal with protruding nails, potholes, piles of wood – anything that may cause an accident, before it’s too late.

Also keep your home safe from burglars by not leaving tools, ladders or keys outside the home.

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With the disastrous hurricanes and forest fires that struck several states in the US these past five years, victims of the calamities were shocked to find themselves shortchanged by their insurance companies. These companies have been reported to be using tactics to reduce, avoid or delay payment to homeowners. This way, the insurance company is able to keep the money longer and invest it to make profits.

Complaints filed against insurance companies soared after disaster victims failed to get the coverage promised in their policies. Insurers were refusing to pay market prices for reconstruction and replacement of home items, policy coverage are being changed without clear explanation.

Read this article for the full story on homeowners insurance fraud.

Off hand, molds don’t pose a threat to homeowners, and is overlooked most of the time, until the damage has become significant to be ignored. However, damages caused by molds, rust and other fungi are generally not covered by your basic homeowners insurance, since it is a maintenance issue. It is the responsibility of the homeowner to ensure the cleanliness of his home. Check with your insurance provider if mold damage is covered, and the specific circumstances associated with the damage, since molds caused by flooding and that caused by negligence will have different assessments.

It would be good if mold damage is covered, but prevention and maintenance of a mold-free home is still the best option. Molds thrive in moist areas, and moisture usually persists in poorly-ventilated and dark parts of the house. Molds also grow faster on piled wood, boxes or paper, making the attic, garage and store rooms its best habitat. Inspect your home for molds, clean up and prevent further growth by using the tips found on the following links:

US EPA Mold Resources
Mold and Homeowners Insurance
Home Improvement
Mold Inspector
Household Mold Removal

(Image from www.tilex.com)

If you are living on rental property, you might think you no longer need home insurance. You no longer need to insure the structure, since the building / property owner is responsible for that, but you should insure your personal properties. You should also get liability insurance and additional living expenses coverage.

If you own a rental home that has been damaged and is covered, you may claim a reimbursement for the rent you would have collected had the property not been destroyed.

For more information on rental property insurance, visit: Renters Coverage

(Image source: www.coverage.ie)

The items inside your home may be worth more than your house. These items may be covered by your homeowners insurance. It is important to make an inventory of valuable items in your home such as jewelries, collectible items such as paintings and figurines, appliances and gadgets. Having this list will help you make claims easier than trying to recall items lost in a fire. You also have the option to insure big ticket items separately.

Once you have made your list, keep it in a safe deposit box, or better yet, let a friend or relative keep it, just in case. You can also store it online.

To know more about home inventory, visit: Home Inventory

(Image source: www.propertyproofhomeinventory.com)