Buying Household Insurance
When you buy a house you need to buy household insurance also. It is necessary to do some research to find a really good household insurance policy to give your house the best protection and still keep the insurance at an affordable price. Even thought owning a home is desirable it can cost you quite a bit of money if there is a disaster or accident.
Research the reputation of the insurance company and make sure you are not handing out money for payments to a company that always finds a reason not to pay for much of anything if something goes wrong and you need to make a claim on the policy, this does happen. At this point the only recourse is to take the insurance company to court although you can complain to the Attorney General's office, taking them to court is an additional expense and often a losing battle even if you are in the right. The standard household insurance policy will protect the house and the policy holder's belongings.
The best household insurance will come in what is called a package policy which means that it covers house damage along with liability if someone is injured by you or any member of the family, an example might be the kids playing baseball out in the backyard and the neighbor's child accidentally gets hit with the baseball, this insurance should include pets which might not necessary be a bite. If the family dog accidentally scratches someone with its nail someone might claim damage. Some breeds of dogs are not covered in an insurance policy. A good insurance policy will give you coverage to pay for the damage that may be caused by both accidents and disasters like fires, hurricanes, hail and lightening and much more. Basic household insurance should cover falling objects, weight of ice which is sometimes very important, snow or sleet, electric surge, water related damage, as an example water running out of the washing machine from the utility room and damaging a rug. There is an extended household insurance policy that covers seventeen different types of damages except for war, nuclear accident, earthquake and flood.
Flooding insurance is not always easy to get and could run up into the money, especially if you live in a flood plain. The policy should also cover the cost of repair and damage to any detached buildings such as sheds, a garage, barn, etc... There is an act of God clause that is nothing more then an out for the insurance company not wanting to pay heavy damages. Make sure you know if this is included in your policy and you understand what is not going to be covered by an act of God. How an insurance company could possibility prove an act of God in court is beyond the understanding of most people.
Personal liability protection is necessary, make sure it is included in the household insurance policy; and there is a no fault medical coverage so you can summit the bills directly to the insurance company if an incident should occur and avoid a liability claim being filed against you. Standard household insurance sometimes may not be enough depending on your location and riders might have to be added. Just make sure the riders are not removed by the insurance company and you think you have coverage that you do not have and if they suddenly will not allow a particular rider make sure you do not continue to pay for it. The riders might be for earthquakes, flood, riot or volcanic eruption or any other natural disaster. When selecting a household insurance policy remember this policy must be geared to your needs and what is just perfect for your relative or friend may not be the best thing for you. Household insurance is important enough that you should shop around.
Get a few quotes and know the value of the household goods you want to insure. Quotes are free. Be aware however, that the insurance companies are not unintelligent when you are making claims. Do not make a fool of yourself, everything under the sun has been pulled on the insurance companies and they are very savvy. An example would be claiming your seventy thousand dollar house is worth four hundred thousand dollars, burn it down to the ground yourself and actually think the insurance company is going to hand you four hundred thousand dollars. What they might do if you do not end up in prison is build you a seventy thousand dollar house. This was an actual incident told by an insurance man.
You might need flood insurance and not realize it even when the ground your house is on is a little higher then those around you. If there has been constant flooding and groundwater from over saturated soil occasionally water can seep into the house and cause thousands of dollars worth of damage. Heavy snow melt over frozen ground can also cause flooding. New sub divisions can leave less soil to absorb water. Flood insurance is separate and is not covered in a regular policy. The final cost depends on the amount of coverage and the amount of risk. Be careful when you make a claim; if you do not have flood insurance sometimes the home owner can put the blame on the wind factor which is covered. This means watch what you say to the insurance man because if you mention flood there will be no reimbursement. Flood maps are not kept up to date and for this reason there are quite a few homes flooded out that were supposed to be low flood risk. If you are getting a federal backed mortgage, HUD, on a house that is in a high risk area you will have to have flood insurance added to your household insurance. You can find your flood risk on the internet. If you buy it you need enough to cover the cost of the house and the goods in it. There is a policy limit and the insurance company will not pay more than the company limit if the cost of damages runs higher. Coverage as a rule starts thirty days after purchase unless you need it to get the mortgage then an arrangement can be made to have it start immediately.
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