What you need to know about homeowners insurance - provided by Heritage Insurance - Erin Huber 701.532.3131
Am I required to have homeowners insurance if I own a home?
Unlike driving a car, you can legally own a home without homeowners insurance. However, if you finance your home with a mortgage, your lender will require you to have home insurance coverage to protect your home in case of damage cause by unforeseen circumstances, such as fires or natural disasters.
What factors can affect homeowners insurance premiums?
The following factors can affect your homeowners insurance premium: ? Home Features and Characteristics — Your home's age, type of structure, wiring, roof, garage, etc., can affect your homeowners insurance premium. ? Location — Where your home is located can change your homeowners insurance premium. For instance, your home insurance rate can be affected if your home is in close proximity to a fire station; is exposed to extreme weather, such as hurricanes, tornadoes or earthquakes; or is in a neighborhood more prone to theft. ? Protective Devices — Burglar alarm systems, smoke detectors, fire extinguishers, sprinkler systems and deadbolt locks can lower your homeowners insurance premium. ? Personal Factors —smokers may pay more for home insurance than nonsmokers. A good credit history also can lower what you pay for home insurance. ? Claims History — If you have a history of claims on a homeowners insurance policy, you may pay a higher premium.
Why should I complete a home inventory? When you purchase a home and a homeowners insurance policy, you should create an up-to-date home inventory to expedite a claim settlement if you ever need to make one. With a complete home inventory, your insurance company can verify property easier, which makes settling your claim easier. Plus, you can easily verify losses for your income tax return with an updated home inventory
What is a deductible?
A deductible is the amount you’re responsible for in the event of a covered loss. In most covered losses, you are responsible for any amounts up to your deductible level and your insurance would cover anything beyond that up to your coverage limit. For example, if you select a $1,000 deductible and have a $4,200 covered loss, you would receive a claim payment of $3,200 after deducting the $1,000.
What are the different types of home insurance deductible options?
For home policies, there are three common types of deductibles:
? A flat deductible is a specific or fixed dollar amount; for example, $2,500.
? A percent deductible is a percentage that it is based on the home’s dwelling coverage, often called Coverage A. For example, a 1 percent deductible on a home with $150,000 dwelling coverage is $1,500, and the same 1 percent deductible for a home with $300,000 dwelling coverage is $3,000. Keep in mind that as your home’s dwelling
What kind of protection do I need against liability claims? Nothing is worse than the feeling you get when you are responsible for damage to someone else's property or for someone else's injuries. This coverage is part of your homeowners insurance policy. It protects you and your family against property damage or bodily injury claims for which you are legally responsible. Liability insurance covers you, for example, if someone slips and falls on your property or if your dog bites someone.