Natural disasters are what many of us imagine of when we think of homeowners insurance, but it protects you in many other ways too. See more real estate pictures. While rebuilding New Orleans and the Gulf Coast after the horrible devastation of hurricanes Katrina and Rita has relied in part on numerous volunteers, aid agencies and donations from the public, insurance agencies have also played an important role. The numbers involved in this disaster, the worst natural disaster the insurance industry has ever dealt with, are astounding: 1.7 million insurance claims were filed for $40.6 billion in damages. Approximately 682,000 insured vehicles were damaged or destroyed. Despite the terrible destruction and the long rebuilding process ahead, insurance companies have largely succeeded in their job. Reports indicate that only 2 percent of claims remain in some form of dispute [ref]. Though many people found themselves the victims of a poor FEMA response or lacked adequate insurance … [Read more...] about How Homeowners Insurance Works
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Choosing a homeowners insurance policy could be confusing since there are an abundance of insurance providers and a plethora of policies. You can get information about various insurance providers through a variety of methods, such as your state’s insurance department, the Internet and advice from friends. However, before purchasing a homeowners insurance policy, you need to determine exactly what your needs are based on your lifestyle and your home’s location. To make an informed decision about which type of home insurance policy to buy, familiarize yourself with your home and neighborhood. A professional home inspection could uncover potential problems in your house’s structure. Once these problems are fixed, the insurance premium will decrease. In addition, find out if your neighborhood is conducive to crime. If so, the insurance premium might be higher than the standard. Similarly, if you live in a neighborhood that’s prone to storms and hurricanes, the cost … [Read more...] about How do you purchase homeowners insurance?
Homeowners insurance is the kind of thing you hope you never have to use, but if you need it, it's invaluable. Whether it pays for natural disasters, such as flooding or lightning damage, or man-made problems, such as fire, vandalism or theft, homeowners insurance can get you back on your feet and give you back a normal life after your house or possessions are damaged or lost. Before anything happens to your house, it's a good idea to videotape your possessions so that, in case of catastrophe, you'll already have records of what you own, which will simplify the process of filing your claim. Also, it's worth reading through your policy, as there could be expenses that you may not realize you could get back money for, such as hiring a company to remove mold. Check what your policy covers and what it excludes. Although you aren't legally required to have homeowners insurance, if you want to borrow money from a mortgage bank, your lender will probably insist on it. In addition, if you own … [Read more...] about Do you need homeowners insurance?
You can get additional homeowners insurance coverage if you need a higher liability than what is offered in the standard policy or for specific items of value. Some insurance companies allow you to just pay an additional premium on your policy to take care of the additional coverage, while other insurance companies require you to take out an additional policy. In either case, you can purchase additional homeowner insurance only when you reach your maximum liability limit on your standard policy. An umbrella policy, or excess liability policy, is a type of an additional insurance policy that defends against libel, slander and invasion of privacy above the standard homeowners insurance. The more regular insurance coverage you have, the cheaper the umbrella policy will cost. For example, it can cost from $200 to $350 for an additional $1 million of extra liability coverage. In addition, there are policies that include a special personal property floater, which insures expensive items on … [Read more...] about Can you get additional homeowners insurance coverage?
An Airbnb host greets guests at her home in Oregon. Airbnb When I was a kid, nothing was more fun than a road trip and an overnight stay in a hotel. But things have changed — big time. Today's travelers are skipping hotels and opting for more personal stays in Airbnbs. The home sharing service reports that more than 200 million people have used its service since 2008 — 80 million of those in 2016 alone. And it's not just those doing the traveling that favor home sharing to hotels. Millennials in particular — 85 percent in fact — support the idea of renting out extra space to people visiting their cities. But how do you protect yourself if you rent a second home — or even part of your primary home — for extra income? Does a standard homeowners insurance policy cut it? What Is Home Sharing? In a nutshell, home sharing is how you — the "host" — can rent your property via a website or app like Airbnb or HomeAway. Potential guests simply … [Read more...] about Does Traditional Homeowners Insurance Cover Airbnb Rentals?