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Home Insurance
For many of us
our home is our most valuable possession. The time to think about the
unthinkable disaster is before it happens to you. If your home were damaged or
destroyed, insurance can help you repair or rebuild your home and replace
damaged possessions.
The main
purpose of insurance is to protect you against losses you cannot afford. Few
people have the financial resources to rebuild their homes. In addition to
protecting your home and possessions, homeowners insurance also provides
liability coverage to protect you from financial ruin if someone is injured on
your property and sues for damages.
A homeowners
insurance policy consists of coverage for your dwelling and your personal
property. It also includes liability insurance which pays for injuries to other
people or damages to their property accidentally caused by you, your family or
your pets (with some restrictions). You also can buy several types of additional
insurance for property that is not listed in your homeowners policy or for
perils not covered — such as earthquake or flood — for which you need a separate
policy. You do this by either buying a separate policy or by adding an
endorsement or rider to your policy.
Tips
for Keeping Your Rates Lower
There are some
simple steps you can take to reduce your homeowner’s premiums.
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Raise Your
Deductible - A deductible is the amount you pay before the insurance starts to
pay for your loss. Since the purpose of insurance is to pay for the losses you
cannot afford, raise your deductible to a limit that you could handle in case of
a loss.
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New Home -
If your home is less than 10 years old, you may be eligible for a new home
discount.
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Make Your
Home Safer - You may be eligible for a discount if you have a burglar and fire
alarms systems and/or sprinkler systems. Monitored systems will earn a bigger
discount than unmonitored systems.
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Construction
Material - When you buy a home, look for fire-resistant construction, such as
brick, masonry or rock. You may pay a lower premium for hail-resistant roofs,
such as those made of concrete tile, while wood roofs may bring a surcharge.
Check the location of the nearest fire department, and avoid buying in
floodprone areas
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