Home
insurance
policies
are
designed
to
protect
your
dwelling
and
personal
property
against
losses
from
the
perils
listed
in
your
policy.
Home
owners
insurance
rates
vary
widely
based
on
geographic
location.
Areas
prone
to
hurricanes,
floods,
hail,
earthquakes,
fires
and
other
natural
disasters
will
generally
have
higher
rates.
Even
the
distance
to
the
nearest
fire
department
or
fire
hydrant
can
have
an
impact
on
your
home
owners
insurance
rates.
Knowing
Your
Policy
Is
VERY
Important
Coverage
for
Property
and
Possessions
Damage
to
the
dwelling
and
the
contents
could
be
the
biggest
unexpected
disaster
awaiting
a
homeowner
who
has
less
coverage
than
needed.
Most
policies
provide
a
stated
maximum
amount
of
coverage
for
the
dwelling
and
another
amount
for
contents.
Generally,
dwelling
coverage
is
based
on
replacement
cost,
which
means
that
in
the
event
of
a
total
loss,
the
policy
will
provide
reimbursement,
up
to
the
policy
limit,
to
replace
the
structure.
Ideally,
a
homeowner
should
buy
enough
insurance
to
completely
rebuild
the
home,
known
as
replacement
value.
This
figure
may
not
be
the
home's
actual
market
value
or
what
the
owner
originally
paid
for
the
home.
This
is
especially
true
in
a
depressed
or
an
inflated
market
or
if
the
home
is
simply
not
replaceable
to
its
condition
prior
to
the
loss.
Replacement
cost
policies,
which
may
pay
over
the
policy
limit
to
rebuild
the
home,
may
be
available
from
your
insurer.
To
determine
how
much
insurance
to
purchase,
an
accurate
appraisal
of
the
home
for
replacement
cost
should
be
made.
Working
with
your
insurance
company
is
important
in
this
process.
Most
insurers
recommend
or
require
that
a
homeowner
insure
the
dwelling
for
100
percent
of
its
full
replacement
value.
Some
homes,
very
unique
ones
such
as
national
register-types
or
very
elaborate
ones,
cannot
be
insured
for
exact
replacement
since
some
features
are
not
replaceable
in
either
workmanship,
materials
or
practical
costs.
The
insurer
and/or
the
agent
is
the
best
source
for
these
issues.
Coverage
for
personal
property
is
different.
Most
policies
provide
actual
cash
value
coverage
for
contents
which
includes
depreciation,
or
full
value
contents
without
depreciation.
Actual
cash
value
means
that
if
a
power
surge
blows
out
a
10-year-old
television
set,
the
homeowner
should
know
what
to
expect.
Unlike
full
value
contents
coverage,
which
would
essentially
provide
a
new
television
set,
actual
cash
value
coverage
allows
the
insurance
company
to
calculate
the
useful
life
of
the
item
and
then
depreciate
the
item
to
present
value.
A
depreciated
10-year-old
television
set
would
be
insured
for
only
a
fraction
of
its
original
cost.
A
homeowner
may
want
to
consider
replacement
cost
coverage
to
be
sure
that
the
contents
are
adequately
insured.
In
addition
to
making
sure
that
contents
are
covered
for
replacement
cost
rather
than
actual
cash
value,
homeowners
should
purchase
additional
coverage
for
items
that
would
ordinarily
be
subject
to
loss
limitations.
Virtually
all
policies
cover
contents
loss
up
to
the
policy
limit
for
items
that
include
furniture,
clothing,
toys,
accessories
such
as
lamps
and
other
items
which
are
used
for
decor.
Explicit
limitations
are
set
in
the
policy
for
high-cost
items
such
as
jewelry,
fine
art,
furs,
electronics,
collectibles,
oriental
rugs
and
antiques.
If
a
thief
comes
in
and
steals
a
two-carat
engagement
ring,
it
will
not
be
covered
well
enough
without
what
is
commonly
known
as
a
personal
property
rider
to
cover
specific,
costly
items.
For
more
information
on
home
owners
insurance
visit
our
specialist
site
below.
Home
Owners
Liability
Coverage
Liability
insurance
is
very
important
to
a
homeowner's
coverage
because
it
helps
protect
the
owner
and
the
family
from
financial
disaster
if
someone
files
a
claim
against
the
homeowner's
policy,
sues
the
homeowner
or
if
the
courts
hold
the
homeowner
legally
responsible
for
someone
else's
injury
or
property
damage.
The
standard
liability
limit
for
most
policies
is
$100,000,
but
many
people
believe
that
additional
protection
is
needed
,
especially
if
the
homeowner
has
sizable
assets.
For
a
small
increase
in
premium,
an
additional
$300,000
to
$500,000
may
be
obtained.
Liability
coverage
protects
in
three
ways:
Personal
liability,
damage
to
the
property
of
others,
and
medical
expenses
for
injury
to
others.
Another
way
to
protect
one's
assets
is
to
consider
an
Umbrella
Policy
which
usually
adds
$1
million
(or
possibly
more)
in
excess
liability
coverage
to
the
homeowner's
property
and
automobile
insurance
policies.
It
also
covers
claims
excluded
from
most
basic
policies
such
as
libel,
slander,
defamation
and
mental
anguish.
For
example,
most
policies
provide
liability
coverage
that
covers
not
only
accidents
that
occur
on
the
insured
property
but
accidents
that
occur
elsewhere.
If
the
family
dog
bites
a
neighbor
in
front
of
another
neighbor's
house,
for
example,
the
dog
owner's
homeowner's
policy
will
usually
compensate
the
neighbor
for
injuries
and
necessary
medical
expenses.
For
more
information
on
home
owners
insurance
visit
our
specialist
site
below.
Theft
Off
Premises
Most
policies
automatically
insure
against
the
loss
of
personal
property
even
if
that
property
is
not
on
the
insured
premises
when
it
is
lost.
If
one
goes
to
the
airport
with
several
suitcases
and
they
are
stolen,
this
is
probably
covered.
Talk
with
your
agent
and/or
your
insurance
company
for
details.
Additional
Living
Expenses
Another
automatic
benefit
of
which
many
homeowners
are
unaware
is
coverage
for
living
expenses
if
the
covered
premises
is
damaged
to
the
point
of
being
uninhabitable.
Not
only
should
the
policy
pay
for
the
cost
to
repair
the
damage
to
the
dwelling,
but
it
should
also
reimburse
the
homeowner
for
the
additional
expenses
of
living
elsewhere
while
the
repairs
are
being
made.
For
more
information
and
rates
on
home
owners
insurance
visit
our
specialist
site
below.
What
Can
A
Homeowner
Do
To
Be
Prepared?
How
does
someone
find
out
what
is
and
what
is
not
covered?
Read
the
policy
carefully.
It's
not
likely
to
be
fun
reading,
but
the
good
news
is
that
if
one
reads
and
understands
his
or
her
policy
before
it
is
needed,
this
knowledge
may
save
unexpected
financial
losses
should
a
problem
occur.
It
is
always
best
to
talk
with
one's
insurance
agent
or
the
company
that
issued
the
policy
for
details.
Understanding
your
homeowners
insurance
policy
is
best
handled
before
a
claim
is
made.
In
the
case
of
the
contents,
an
inventory
of
items
room
by
room
is
important
to
have
with
information
such
as
the
date
purchased,
serial
number,
the
original
cost
of
each
item
and
a
brief
description.
Video
tape
or
still
photos
is
very
helpful
along
with
the
inventory.
These
items
should
be
stored
in
a
safe
place
such
as
a
safety
deposit
box
in
a
bank
or
savings
and
loan
institution
and
not
in
the
home
because
if
the
home
is
destroyed,
the
chances
are
the
inventory
and
related
photos
or
tape
may
also
be
destroyed.
Save
Money
On
Your
Homeowners
Insurance
Insurance
is
a
highly
competitive
business
and
the
price
paid
by
the
consumer
for
homeowners
insurance
may
vary
by
hundreds
of
dollars,
depending
on
the
insurance
company
with
which
the
consumer
intends
to
do
business.
Companies
offer
several
types
of
discounts,
but
they
may
not
always
offer
the
same
discount
or
the
same
amount
of
discount.
That
is
why
the
consumer
should
ask
his
or
her
insurance
agent
or
company
representative
about
any
discounts
that
are
available.
What
should
a
prospective
homeowners
policy
holder
think
about
when
assessing
which
policy
to
obtain?
Here
are
several
ideas
for
potentially
lowering
costs.
-
Shop Around
Prices vary so it pays to shop around. Ask friends, check the Yellow Pages, refer to consumer guides, insurance agents, the consumer phone line of the state's insurance commissioner's office and the companies for price information.
-
Raise the deductible
Deductibles are the amount of money the homeowner pays toward a loss before the insurance company starts to pay according to the terms of the policy. Deductibles on homeowners policies typically start at $250. By increasing the deductible to $500, $1,000, $2,500, or $5,000, discounts may be obtained, depending on the insurance company.
-
Buy home and auto policies from the same insurer
Some companies that sell homeowners and auto coverage may reduce their premium if two or more policies are purchased from them. When buying a home, consider how much insuring it will cost. A new home's electrical, heating and plumbing systems and overall structure are likely to be in better shape than those of an older house. Insurers may offer a discount if the house is new. Choice of construction materials and design could reduce the premium. Brick, because of its resistance to wind damage, is better in Georgia. Proximity to fire station, firefighters and fire hydrants also affects premiums.
-
Insure the house, not the land
The land under the house isn't at risk from theft, windstorm, fire and other perils covered in a homeowners policy. Therefore, the value of the land should not be included in deciding how much homeowners insurance to buy.
-
Beef up home security
Some insurance companies offer discounts for smoke detectors, burglar and fire alarm systems, or dead-bolt locks. Others offer discounts for homes equipped with a sprinkler system and fire detection and burglar alarms that ring at the police station or at a monitoring facility. Before buying such a system, consumers should check with their insurers to validate that such as system will be eligible for a discount and how much the device or system would cost. Most importantly, the consumer should know how much may be saved on premiums.
-
Stop smoking
Smoking accounts for more than 23,000 residential fires in a year nationwide. That's why some insurers offer to reduce premiums if all the residents in a house do not smoke.
-
Seek out discounts for seniors
Retired people stay at home more and spot fires sooner than working people. Retirees also have more time to maintain their homes. If a homeowner is at least 55 years old and retired, he or she may qualify for a discount at some companies.
Compare
the
limits
in
the
policy
with
the
value
of
the
possessions
in
the
home
at
least
once
a
year.
Policies
should
cover
any
major
purchases
or
additions
to
the
contents
of
the
home.
Remember
that
additions
to
the
physical
structure
of
the
home
should
be
reported
to
your
agent
or
insurance
company
for
a
reevaluation
of
the
limits
of
your
policy.
In
addition,
review
your
contents
which
may
require
a
special
scheduling
on
your
policy.
Such
items
include
jewelry,
watches,
furs
and
computers
to
name
a
few.
If
you
have
sold
or
given
away
special
schedule
items,
they
should
removed
from
your
policy.
Are
You
Adequately
Protected?
Because
there
are
so
many
options
and
variables
associated
with
home
owners
insurance
we
recommend
that
you
use
our
specialist
page
to
find
a
company
in
your
area
that
specializes
in
home
owner
insurance.
It
is
very
possible
to
save
hundreds
of
dollars
a
year
by
simply
shopping
rates
and
coverage
