Home insurance, also commonly called homeowner's insurance (often abbreviated in the US real estate industry as HOI), is a type of property insurance that covers a private residence. It combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.
Being a multiple-line insurance policy, it includes both property insurance and liability coverage, with an indivisible premium and all the risks are paid for with a single premium. Thus, it covers both damage to your property and your liability for any injuries and property damage caused by you or members of your family to other people. It may also include damage caused by household pets. Coverage limits are typically provided as a percentage of the primary Coverage A, which is coverage for the main dwelling. Whether it's your first apartment, a starter home or a retirement condo, find a policy that protects your property - and most of your other important stuff, too.
As you compare prices and coverage offered by different companies, there are five most important things you need to know:
-You should buy enough home insurance to cover the cost of rebuilding your home.
- Your landlord's insurance won't cover your furniture and other household appliances and equipment.
-Having a good inventory is worth your time.
-Replacement cost coverage may be worth the extra expense.
- A home or renters insurance policy doesn't cover everything for example, earthquake, flood etc.
Any basic home insurance policy usually covers at least the following five coverage:
Dwelling coverage -- this is what covers your home. It serves as a basis for all homeowners insurance policies and provides protection for the structure of your home including the floors, walls, built-in appliances, and ceilings, as well as any attached structures. It also covers a variety of perils including fire, hail, theft, and vandalism – and can help you rebuild your home in the event of a total loss (up to your policy limit).
Other property insurance covers structures on your property that aren't attached to your home. Other property includes a detached garage, a shed, or a fence.
Personal property coverage -- this is what covers the property within your home such as your furniture, electronics, clothing, etc
Liability coverage -- consists of bodily injury damage coverage, which covers costs if a guest sustains an injury in your home or elsewhere, and property damage coverage, which kicks in if your property is damaged as a result of a covered accident. This is what covers you in case a visitor suffers a serious injury and sues you.
Additional living expenses -- this is what covers you in case your home is uninhabitable, and you need to live elsewhere.
Ensure to find out from your chosen homeowners insurance policies the home's replacement cost, the maximum coverage (flooding, earthquake,), the discounts, the effect your credit score has on your rates, Homeowners insurance deductibles. When you buy property insurance the most important thing is to make sure you are not under-insured. Be sure to calculate the total value of all the entirety of your property – you can’t pick and choose what you want to be covered. You should request a Comprehensive Loss Underwriting Exchange (CLUE) Report for your new home to see the claims that the homeowner filed. Insurance companies are all about preventing risk. If they see that the home had multiple claims in the matter of a few years, you will pay higher rates. An insurer may even decline coverage.
The type of insurance policy you buy for your business/office may differ depending on the size and type of business you are running, your insurance budget and whether any of your clients have requirements about what insurance cover you should have.
Common Business insurance includes:
Public liability insurance that protects you against claims for compensation from people outside your business who have suffered an injury or whose property has been damaged because of your business.
Employers' liability insurance which protects you if an employee is injured or becomes ill because of their work.
Property insurance protects your business building and assets.
Professional insurance protects your business by paying for this compensation and legal costs.
You may feel confident that you know what insurance to buy but not how much. For public liability and professional indemnity, you will need to choose a limit of cover which is right for your business. Think about the type of work you do and what could go wrong in the worst case scenario – how much might it cost, especially if a dispute went to court. Buy a level of cover which you are confident will cover the cost of compensation you might have to pay. Employer’s liability insurance is required by law if you have employees.