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If you were to lose your home in a fire, would you have enough homeowners insurance coverage to rebuild your home and replace your possessions? You'd also need a place to live while your home is being rebuilt.

Does your policy contain a Loss of Use provision that will help pay for hotel, restaurant and other expenses accrued while you're displaced? Chances are your homeowners insurance isn't going to provide you with enough coverage to resume the lifestyle to which you've grown accustomed should a disaster strike.

Homeowners Don't Know They Are Underinsured
Homeowners are spending billions of dollars a year to add onto their homes, but most of them don't update their homeowners insurance coverage which leaves them grossly underinsured.

According to a Marshall & Swift / Boeckh survey, 66% of U.S homes are undervalued for the purpose of insurance by an average of 18%. If you add a new deck to your home, but fail to notify your homeowners insurance provider, you could end up underinsured.

How Much Homeowners Insurance Coverage Do You Need?
Many homeowners might be unaware of how much homeowners insurance coverage they need. You need enough coverage to protect your home and assets in case of a worst case scenario and your home is lost due to a covered disaster. You need to review your policy at least once a year to make sure all your belongings are covered.

Homeowners insurance policies can be broken down into four categories - structures, possessions, living expenses and liability:

Structures
You generally want to have coverage equal to at least the amount of your mortgage. Your policy should cover rebuilding costs. And if you've recently remodeled your home, you need to update your coverage to cover these additional renovations.

Possessions
Your homeowners policy will also cover your possessions. You may choose between replacement coverage (the cost to replace each item) and actual cash value coverage (the item's original value less depreciation). If you have valuable jewelry, an art collection or a state-of the-art home theater system, you should consider purchasing additional coverage to cover these items.

Living Expenses
This often overlooked coverage will provide you with coverage for hotel, restaurant and other miscellaneous expenses you may accrue if your home is rendered uninhabitable by a covered disaster.

Liability
Most policies offer a base amount of liability coverage - typically $100,000. However, if you have a swimming pool or a dog whose breed is aggressive by nature, you may want to consider increasing your limits.

Review Your Policy
The most effective way to know if you have enough insurance is to maintain a home inventory that you update regularly, and check your homeowners insurance policy at least once a year. Keeping your home inventory up-to-date will help you determine how much homeowners insurance coverage you need. After updating your home inventory, you may find you need to increase your coverage.

Even if you need to add more coverage to your homeowners insurance policy, there are still ways to keep your rates low. The best way is to compare multiple homeowners insurance quotes to find the right policy with the best price. Nothing is more costly than having an underinsured home.

Posted by InsZo at 10:46 AM | Permalink | TrackBacks (0)

Beginning this month, 130 million American households will begin receiving their economic stimulus payments. This is particularly good news for homeowners. In addition to the tax rebates of $600 for individuals and $1,200 for working couples, Americans with more expensive homes will now be able to refinance their homes at cheaper rates. While this economic plan will provide much needed relief for many borrowers, homeowners can experience long-term benefits by creating their own Home Insurance Stimulus Plan.

Home Insurance Stimulus Plan: 6 Easy Steps
You can create long-term savings by implementing your own Home Insurance Stimulus Plan. There are six easy steps you can take to lower your home insurance payments - (1) comparison shopping; (2) raising your deductible (3) taking advantage of available discounts; (4) adding an alarm or security device; (5) having your carrier recognize certain home improvements; and (6) eliminating unnecessary coverage can all help save you money in the long-term.

1. Comparison Shopping: The Best Way to Save on Home Insurance
The number one way to save money on your homeowners insurance is to shop around for coverage. Homeowners insurance rates are always fluctuating and vary from company to company. If you've just purchased or are about to purchase a new home, compare several quotes before choosing a home insurance provider. If you're a long-time homeowner, review your current rates and compare them to rates offered by other carriers. Your current company could be overcharging you, and it only takes a few minutes to compare rates. Switching companies can potentially save you a significant amount of money.

2. Raise Your Homeowners Insurance Deductible: Save up to 25%
Another great way to save money on your home insurance is to increase your deductible. According to the Insurance Information Institute (III), if you raise your deductible from $500 to $1,000, you may save as much as 25% on your annual premium.

Remember, homeowners insurance is not intended for small fix-it claims. Therefore, the benefits of a lower deductible can be quickly dissolved by the higher rates you'll experience after making such claims. As homeowners insurance is intended for major perils, consider higher deductibles and collect the savings resulting from a lower premium.

3. Multi-line Policy Insurance Discounts: Save up to 15%
Purchasing your homeowners insurance and your car insurance from the same insurance carrier could save you up to 15% on both premiums.

4. Additional Security and Safety: Save up to 20%
Have you added new security devices to your home in the last year; perhaps a deadbolt lock, window locks, or even an alarm system? Insurance companies highly value the protection afforded by fire sprinkler systems, burglar alarms, and fire alarms -- especially those connected to monitoring agencies such as your local police and fire departments. Accordingly, some carriers will reduce your premium by as much as 20% if you install some of these home security devices.

5. Discounts for Home Improvements
A new home's electrical, heating and plumbing systems, and overall structure for that matter, are likely to be in better condition than those of an older home. Accordingly, their insurance rates are generally lower as the risk for a potential claim is reduced. If you've made any home improvement in the past year, see if you'll be rewarded with policy discounts.

6. Eliminate Coverage You Don't Need: Analyze Your Homeowners Limits
Ideally, you want your policy to cover any major purchases or additions to your home, but you shouldn't spend money for coverage you don't need. You may have jewelry, appliances, electronics and other valuable possessions that depreciate over time. Therefore, it's in your best financial interest to compare the limits of your homeowners policy to the actual value of your possessions at least once every year.

Posted by InsZo at 9:33 AM | Permalink

Does your policy contain a Loss of Use provision that will help pay for hotel, restaurant and other expenses accrued while you're displaced? Chances are your homeowners insurance isn't going to provide you with enough coverage to resume the lifestyle to which you've grown accustomed should a disaster strike.

Homeowners Don't Know They Are Underinsured
Homeowners are spending billions of dollars a year to add onto their homes, but most of them don't update their homeowners insurance coverage which leaves them grossly underinsured.

According to a Marshall & Swift / Boeckh survey, 66% of U.S homes are undervalued for the purpose of insurance by an average of 18%. If you add a new deck to your home, but fail to notify your homeowners insurance provider, you could end up underinsured.

How Much Homeowners Insurance Coverage Do You Need?
Many homeowners might be unaware of how much homeowners insurance coverage they need. You need enough coverage to protect your home and assets in case of a worst case scenario and your home is lost due to a covered disaster. You need to review your policy at least once a year to make sure all your belongings are covered.

Homeowners insurance policies can be broken down into four categories – structures, possessions, living expenses and liability.

Structures
You generally want to have coverage equal to at least the amount of your mortgage. Your policy should cover rebuilding costs. And if you've recently remodeled your home, you need to update your coverage to cover these additional renovations.

Possessions
Your homeowners policy will also cover your possessions. You may choose between replacement coverage (the cost to replace each item) and actual cash value coverage (the item's original value less depreciation). If you have valuable jewelry, an art collection or a state-of the-art home theater system, you should consider purchasing additional coverage to cover these items.

Living Expenses
This often overlooked coverage will provide you with coverage for hotel, restaurant and other miscellaneous expenses you may accrue if your home is rendered uninhabitable by a covered disaster.

Liability
Most policies offer a base amount of liability coverage – typically $100,000. However, if you have a swimming pool or a dog whose breed is aggressive by nature, you may want to consider increasing your limits.

Review Your Policy
The most effective way to know if you have enough insurance is to maintain a home inventory that you update regularly, and check your homeowners insurance policy at least once a year. Keeping your home inventory up-to-date will help you determine how much homeowners insurance coverage you need. After updating your home inventory, you may find you need to increase your coverage.

Even if you need to add more coverage to your homeowners insurance policy, there are still ways to keep your rates low. The best way is to compare multiple homeowners insurance quotes to find the right policy with the best price. Nothing is more costly than having an underinsured home.

Posted by InsZo at 3:07 PM | Permalink

1. Raise Your Homeowners Deductible: Save up to 25%
The lowest hanging fruit for homeowners insurance savings may be to increase your deductible. According to the Insurance Information Institute (III), if you can afford to raise your deductible to $1,000 from $500, you may save as much as 25% on your annual premium.

Remember, homeowners insurance is not intended for small fix-it claims, therefore, the benefits of a lower deductible can be quickly dissolved by the higher rates that you will experience after making such claims. As homeowners insurance intended for major peril, consider higher deductibles and collect the savings in the cost of your premium.

2. Multi-line Policy Insurance Discounts: Save up to 15%
Purchasing your homeowners insurance and your car insurance from the same insurance carrier could save you up to 15% on both premiums.

3. Additional Security and Safety: Save up to 20%
Have you added new security devices to your home in the last year; perhaps a deadbolt lock, window locks, or even and an alarm system? Insurance companies highly value the protection afforded by fire sprinkler systems, burglar alarms, and fire alarms — especially those connected to monitoring agencies such as your local police and fire department. Accordingly, some carriers reduce premiums by as much as 20% if you install some of these features.

4. Discounts for Home Improvements
A new home's electrical, heating, and plumbing systems, and overall structure for that matter, are likely to be in better condition than those of an older home. Accordingly, their insurance rates are generally lower as the risk for a potential claim is mitigated. If you have made any home improvement in the past year, you should see if a new policy will reward you with policy discounts.

5. Eliminate Coverage You Don’t Need: Analyze Your Homeowners Limits
Ideally, you want your policy to cover any major purchases or additions to your home, but you should not spend money for coverage that you don't need. You may have jewelry, appliances, electronics, and other valuable possessions that depreciate over time; therefore, it is in your financial best interest to compare the limits of your homeowners policy to the actual value of your possessions at least once every year.
Homeowners insurance rates are always fluctuating and vary from company to company.

Taking time to review the amount of homeowners insurance that you need will help you from buying more coverage then you need. Also, taking time to compare multiple homeowners insurance quotes will help you find the right amount of homeowners insurance that fits your budget.

Posted by InsZo at 4:55 PM | Permalink

The first thing you should do to protect your home is to have the proper homeowners insurance coverage. If a Holiday disaster does happen to you, a homeowners insurance policy can help you get back to normal more quickly then if you are uninsured.

More Decorations Means Higher Fire Risk
December is the deadliest month for home fires. In fact, Christmas Eve, Christmas Day, and New Year's Eve are the top three days for home fires. Although unattended cooking and heating are the primary causes of such fires, almost half (48%) were attributed to Christmas trees, which were caused by some type of electrical failure or malfunction. December is the peak time of year for home candle fires. In December, 13% of home candle fires began with decorations compared to 4% the rest of the year.

The Deadly Side of Christmas Trees
The NFPA also warns us about Christmas tree fires, as they contribute to over 300 home fires and 14 deaths every year. Christmas tree fires are generally caused by malfunctioning tree lights, and by the tree being too close to a heat source (fireplace, heater, candle, etc.) When decorating your tree, you should never use lights with worn cords or loose bulb connections, and always unplug the lights before going to bed or leaving the house

10 Tips For Holiday Fire Safety

1) Use Caution With Holiday Decorations
Try to choose decorations that are flame-resistant, non-combustible, or made from flame retardant material.

2) Watch Where You Place Candles
Keep candles away from decorations and other combustible materials. Also, don’t use candles to decorate your Christmas tree.

3) Buy Lights that have been Tested
When purchasing your Holiday lights and electrical decorations, buy those that have a label that they were tested by an independent research lab. Make sure you follow the instructions that come with the decorations.

4) Inspect Your Lights
Inspect new and used light strands and replace damaged items before plugging them in. Also make sure you don’t overload extension cords.

5) Unplug Your Lights When Changing Bulbs
If you have to replace a bulb, make sure you unplug the strand of lights before you change the bulb. Also, if you blew a fuse trying to get Rudolph’s nose brighter, unplug the decoration before checking the fuse box.

6) Check the Number of Strands You Need
Check to see how many strands of lights need to be connected. Make sure you don’t connect more than three strands of push-in-bulbs and a maximum of 50 screw-in-bulbs.

7) Carefully Hang Your Lights
When hanging your lights, make sure you do so in a way that won’t damage the cords wire insulation. An example would be using clips instead of nails.

8) Keep Children and Pets Away From Lights
Make sure that children and pets can’t get to electrical decorations and strands of lights.

9) Turn Off Decorations When Going to Bed
Make sure you unplug and turn off your Holiday decorations when you turn in.

10) Watch the Stove
The number one cause of home fires is unattended cooking. Make sure you don’t lose track of what you’re cooking when spending time with your family or guests.

With all the joys that come with the Holidays, make sure you take the extra precautions to make your Holiday season as safe and joyous as possible. And as the New Year approaches, it’s a good time to start thinking about updating your homeowners insurance policy.

*Content provided by the National Fire Protection Association (NFPA.org)

Posted by InsZo at 9:28 AM | Permalink

Disasters are Never Planned
Devastating wildfires ripped through Southern California in late October and burned into November. The fires scorched over 800 square miles, charring 2,768 buildings, including over 2,100 homes. In addition to the loss of homes and businesses, another 430 some buildings were damaged by the flames. In all, over 14,000 buildings were threatened by the fires, which caused an estimated $1.6 billion in damages.

Holiday Season and Home Fire Prevention
With Halloween behind us, many of us have begun decorating our homes for the upcoming holiday season. As we begin preheating our ovens to cook our Thanksgiving turkeys and decking the halls with boughs of holly, we’re also unwittingly increasing the likelihood of becoming victim to a home fire. Cooking fires are more likely to happen on Thanksgiving than any other day of the year. In 2005, cooking fires were involved in roughly 1,300 reported home structure fires on Thanksgiving – that’s almost three times the daily average. And the threat of home fires doesn’t end on Thanksgiving. Holiday lights (or other decorative lighting with live voltage) were involved in 16% of the home Christmas tree structure fires. (NFPA)

What’s Covered in a Homeowners Insurance Policy
The typical homeowners policy has two primary sections: Section I covers your property, and Section II provides personal liability coverage to help protect you from lawsuits arising from incidents that occur on your property. Almost anyone who owns or leases property should have this type of insurance. Often, homeowners insurance is required by lenders as a requirement to obtain a mortgage. Simply put, Section I covers damages that happen to your home (and property), while Section II covers injuries that happen to your guests while in your home or on your property (Insurance Information Institute).

Typical Disasters That are Covered with Homeowners Insurance
Typical hazards and perils covered in most homeowners insurance policies include fire, smoke, lightning, windstorm (excluded in certain areas of the country), hail, vandalism/theft, falling objects (such as a tree), water damage from bursting or frozen pipes, weight of snow or ice, a vehicle causing damage to the home, building collapse and structural damage from an electrical surge (not from electronics, such as your stereo, inside your home).

Nobody ever thinks that a fire will burn down their home or apartment. The Southern California wildfires serve as a tragic reminder that anybody can become a disaster victim. As you prepare for the holidays, consider the peace of mind a homeowners policy can provide.

Posted by InsZo at 9:29 AM | Permalink

Try to get serial numbers for the big ticket items, and write down when, where, and for what price you purchased each item. Make sure you remember to go into closets, cupboards, and storage areas and write down the items in these as well. While some items you own have depreciated in replacement price (televisions, electronics, furniture, etc.), some items may have increased in value (such as art, jewelry, and collectibles). You may need to insure these items separately; check with your insurance agent and find out if your current policy adequately covers these valuables.

Take Pictures or a Video of Your Belongings
It is a good idea to take pictures or make a video of the items in your home. If you take pictures, write the details of the items on the pack of the picture. If you make a video, narrate as you walk from room to room (what items are in the room, when and where you bought them and for how much). Photographing or videotaping your home’s inventory can be especially helpful if items are hard to describe on paper, or for items you do not have receipts for.

Store Your List in a Safe Spot
Make sure you store your list, pictures, and/or DVD or video tape in a safe spot. While it’s a good idea to have a copy at home, make sure you have at least one additional copy outside your home. If you only have one copy inside your home (or on your home computer) and your home burns down, that list won’t do you any good. If your inventory is on your computer, make a disk or CD and store it elsewhere, and/or send your list to yourself at work or to your web-based email account so you can access it in places other than your home.

Keep Those Receipts!
Many of us are not great at keeping our receipts for the purchases we make. Now that you’ve read this article, make sure you keep receipts from now on, especially for those big ticket items. These receipts will help you settle your homeowners or renters insurance claim as quickly as possible. And remember; keep receipts (or copies of them) in a place besides your home, along with a copy of your home inventory.

Offset the Cost of Your Mortgage by Saving on Homeowners Insurance
Homeowners Insurance: How to Save on Your Policy and Find Additional Home Insurance Discounts
Burglarproof Your Home and Save on Home Insurance

Posted by InsZo at 9:35 AM | Permalink

What is Identity Theft Insurance?
Identity Theft insurance reimburses victims for the cost of restoring their identity and repairing the damage to their personal financial information (e.g. credit reports). Insurance reimbursement can include lost wages, administrative expenses such as phone bills, certified mailing and notary costs, and even attorney fees if necessary.

The Insurance Information Institute reports that these policies generally cost between $25 and $50 a month for $15,000 to $25,000 worth of coverage.

What Identity Theft Protection is Right for You?
As with any insurance product, it is important to shop around for the best Identity Theft insurance coverage as rates and protection levels vary from company to company. When considering the appropriate policy deductible, consider the various costs associated with the crime.

The Cost of a Stolen Identity
According to the Identity Theft Resource Center, an independent non-profit organization, the average identity theft victim spends over $800 on administrative expenses alone (phone, postage, notary, etc.). This cost does not include the potential threat of lost wages, compromised work performance and elevated stress levels. The average victim spends over 170 hours trying to repair the damage done to their personal financial information. This laborious and frustrating time can include removing negative marks on credit reports and reapplying for credit accounts and loans. Further compounding the nightmare, many of these stressful tasks can only be conducted during working/business hours.

Protect Your Identity: Simple Steps Could Save You a BIG Headache
With online shopping becoming increasingly popular, you should make sure your computers security settings are up to date. This means updating anti-virus software, make sure your firewall settings are set, and that your operating system is updated. It is always a good idea to use caution when dealing with unknown pop-ups or attachments in e-mails.

It is also a good idea not to store personal information, such as your social security number or credit information on your computer. For non-electronic files, such as bank statements and credit card info, either shred them before throwing them away or tear them into as many little pieces as you can before disposing them. This will prevent would be identity thieves from finding important financial information when going through your garbage.

If you ever suspect that your identity has been stolen, it is critical that you contact your bank and credit card companies immediately. These financial institutions should be able to help you with alerting the credit bureaus and directing you to the appropriate resources. Having Identity Theft insurance can help you get your life back on track more quickly in the event your identity is stolen.

Posted by InsZo at 2:42 PM | Permalink

Living on Campus: What Your Policy Covers
Dorm room living is a traditional rite-of-passage for many young adults. An environment of adolescent roommates and unlocked doors, on-campus living is a risky environment that requires the attention of your homeowners policy. Generally a student’s possessions are protected by his/her parent’s homeowners insurance polices; however, there will may be limits on some items such as stereos, computers, and bikes, so additional coverage might need to be purchased.

Lesson #1: Not a Fix-All Magic Wand
Of course, planning for this is a wonderful time to explain the magic of homeowners insurance to your young adult, as it’s not intended to be a “fix-all” savings account, but rather a financial tool that returns one’s life to an original state — should a major loss happen. Furthermore, the cost of deductibles and the future impacts of making claims can be as financially debilitating as a late payment on one of the high-interest rate credit card offers your student will be bombarded with. Side note: Teach your student the power of “NO!”

Living Off-Campus: A Bigger Challenge
On the other hand, if your student attends college by living in an off-campus arrangement, be aware they are most likely not protected by your homeowners insurance policy. A much more uncontrolled and independent environment to insurance companies, living off-campus requires a separate policy — perhaps renters insurance if applicable. Similar to a homeowners policy, you can get a quote online and discuss your needs with an experienced agent.

Before You Leave the Nest: Take an Inventory
Filing a homeowners insurance claim is the same process as figuring out exactly how much insurance coverage is needed. You have to take an inventory of all your possessions and assign a value. As your students packs boxes with computer equipment and invaluable personal effects that inspire their individuality, take the time to itemize an inventory and complement it with supporting pictures, serial numbers, and receipts if possible. Having this supporting documentation supports your efforts should you file a claim in the future, not to mention, an updated total value affords you the ability to get new pricing for your homeowners protection.

Posted by InsZo at 9:22 AM | Permalink

In the struggle to escape foreclosure, some homeowners will make simple adjustments in their daily lives by conserving energy and vacationing closer to home to save some money. Others, however, will be forced to drastically scale back their expenditures on not only frivolous items, but on necessities as well. Unbeknownst to many homeowners, comparing homeowners insurance quotes is an effective way to find savings that can alleviate the financial stresses of owning a home.

Homeowners Insurance and Mortgages
As far as many new home buyers have been concerned, their homeowners insurance policies are bundled into their mortgage payment. Satisfying the lender's prerequisite that the premium be paid for the first year at closing, shopping around for the best rate may not have been a reasonable option at the time. Given the current state of rising interest rates though, the need for shopping for a new homeowners insurance policy has never been more justifiable. It's easier than shopping for a mortgage and there are numerous ways for homeowners to save, easing the pinch created by skyrocketing mortgages.

Consider Raising Your Deductible
Increasing your deductible by just a few hundred dollars can make a significant difference to your premium. Most deductibles start at $250, therefore, if you raise your deductible from that to $1,000, you may to save nearly 25% on your premium.

Look for Multi-Policy Insurance
Most insurance companies that sell insurance products other than homeowners insurance will offer consumers discounts for buying more than one product from them. For example, if your auto insurance company also sells homeowners insurance, you might get a discount of up to 15% off your premium for buying both products.

Only Buy the Homeowners Coverage You Need
Homeowners insurance policy limits should be revisited every year to reevaluate any major purchases and additions. On the other hand, many of the possessions that homeowners insure depreciate significantly over the course of a year. Homeowners should update their home inventory, and reevaluate policy limits for possible savings. Further, homeowners shouldn't spend money for coverage they don't need. For example, if you don't live in a flood-prone area, you may not need costly flood insurance.

Look For Discounts That May Apply to You
There are a myriad of homeowners discounts that go unrecognized by many consumers. For example, even though they seem ordinary, you may be able get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire retardant roofing material.

Insure Your House, Not the Land Under It
Consumers often overpay for homeowners insurance by including the value of the land that their home resides. Remember that you only need to insure the home itself and your possessions, not the land. Should something unfortunate occur, the land will most likely remain. If you do not subtract the value of the land when deciding how much homeowners insurance to buy, you will most likely pay more than you should.

Homeowners insurance premiums can vary by hundreds of dollars from one company to another. Using InsWeb.com's online quote form, you can easily shop for and compare multiple homeowners insurance quotes from the comfort of your home.

Posted by InsZo at 12:22 PM | Permalink

Just like adding a swimming pool to your homeowner's policy, owning a dog is a policy underwriting factor that insurance companies take very serious. Carriers aren't concerned that Fido will necessarily flood the house by chewing a garden hose or suddenly break every window in the house without cause, but rather that they will inevitably bite somebody. Simply put: dogs are liability risks to homeowners policies.

Homeowners and renters insurance policies typically cover dog bite liability, as long as your dog is disclosed to your insurance company. Insurers may charge more or even deny your application if you own specific types of dogs. These are determined by the frequency of dog bites for the breed, whether they are large dogs that can inflict a lot of damage, and the breed's general reputation. Some of the breeds that raise red flags for insurers are Pit Bulls, Rottweilers, German Shepherds, Siberian Huskies, Malamutes, Doberman Pinschers, Chow Chows, Great Danes, Saint Bernards, and Wolf Hybrids.

Adequately insuring a home with a dog is a common oversight by many homeowners. Some try to save money by omitting the information from the application, and others simply neglect to report the pet since they're already committed to an affordable policy. Don't be foolish, the only decision you can make is to disclose the dog to your homeowners insurance company since any claim will most likely be denied if you don't. Knowingly omitting relevant liabilities to your insurance company constitutes grounds for policy cancellation, which is certainly not in your financial interests.

You may find that adding a dog to your homeowners policy will be negligible to your premium, however, if the opposite is true, it's time to shop around for new coverage. Homeowners insurance rates can vary by hundreds of dollars between carriers, as extra charges for dogs can also differ dramatically from company to company.

Posted by at 9:50 AM | Permalink | TrackBacks (0)

Home improvements can quickly add to a home’s value. Accordingly, you should do a quick comparison of the difference in homeowners insurance quotes with the improvements. It is not until a disaster strikes that many homeowners realize they haven’t reevaluated their coverage to include any improvements made to the house.

After undergoing the tragedy of losing your home, you don’t want to also find out that your insurance policy covers only the pre-improvement value of your home. The difference in replacement value can be very significant. Trusted Choice® reports that nearly 40% of homeowners who make improvements to their homes do not update their homeowners policies to reflect these changes.

As the value of your home increases, you may experience a modest increase in your homeowners insurance as a result. There are many discounts available to you that may help offset any such increase. Have you added any new security devices to your home in the last year; perhaps deadbolt locks, window locks, a burglar alarm, or even smoke detectors? Insurance companies highly value the protection afforded by these types of safety devices and are known to reduce premiums by as much as 20% as a result. In the same fashion, you may also experience additional savings on your policy if you upgrade your home’s heating, plumbing, or electrical systems.

There are additional benefits to comparing homeowners quotes before any renovation. If you adjust your policy before the work even begins, you may be covered for any building materials you have in your house during the course of the project. With the increased heavy duty labor, you may be exposed to an increased level of liability and risk of home disasters. Incidentally, it’s a good idea to take “before, during, and after” pictures throughout the renovation. In the event of a claim, you may be required to provide justifiable proof. Likewise, it is also imperative that you make sure any contractors are properly licensed and insured with all corresponding documentation.

Beyond the home improvements at hand, comparing multiple homeowners quotes is an exercise that can uncover new discounts and savings. You should review your homeowners insurance policy at least every 12 months, or more often if your needs change. Significant discounts and savings may have become available since your last policy review. Even if nothing changed on your end, many insurance companies may have reduced homeowners insurance rates since your last review.

Posted by at 9:48 AM | Permalink | TrackBacks (0)

Quality homeowners insurance companies are there when you really need them; however, they don’t like claims—it impacts profits. With much controversy, some carriers are becoming more unwilling to insure homes with any claims, regardless of the extent of the damage. Consequently, it’s not unheard of for the policyholder that made a claim to experience dramatic increases in premiums or to simply receive a heartless non-renewal notice. Unfortunately, given the recent natural disasters, the affordability of homeowners insurance has become a privilege for those who don’t make claims.

Just as your driving record shows all of your accidents and tickets over a period of time, your home has a similar record of historic homeowners insurance claims. Known as CLUE (Comprehensive Loss Underwriting Exchange), most insurance carriers subscribe to this database in order to maintain and verify underwriting information. In the same manner that your driving record can affect your desirability to a new employer, insurance claims on your home can travel far beyond just the price of insurance. If you ever decide to sell your home, prospective buyers are likely to review the claims history since they will inherit its “less than perfect” record if they decide to purchase the home.

Although it’s always wonderful to save money, paying out-of-pocket for what seems like a minor claim is not a hard-and-fast rule. When the event that affects your home involves liability for another party, where the smallest possibility of a lawsuit looms, protect yourself by notifying your insurance company immediately. Even if the person injured on your property passively excuses the situation, be aware that you are still subject to the risk of his/her long-term injury and corresponding lawsuit.

Posted by at 3:02 PM | Permalink | TrackBacks (0)

Creating an inventory of your personal property is a habit that should coincide with your annual review of your homeowners policy. Before you even compare new homeowners rates, simply go room to room and document every item. Try to get serial numbers when possible and gather as much detail as you can: when, where, and for what price you purchased each item. Previous victims will tell you that pictures and videos of the larger ticket items and any supporting receipts are invaluable in the process of making a theft claim on your policy.

According to the Insurance Information Institute, standard homeowners insurance policies generally value personal property at 50% to 70% of the coverage on the structure of the home. Of course, as we mentioned above, a home inventory will make determining the value much easier and absolute. The more valuable possessions like jewelry, collectables, and antiques are protected by a standard policy, but there are usually limits to what a company will pay for these. To insure these items to their full replacement value, consider adding a personal property rider to your policy. Although this will add to the cost of your premium, the extra coverage will be much broader for these items. For example, a diamond engagement ring would be covered in the event of a burglary or even if you lost it during a vacation. Riders can be added during the quoting process, or at any time thereafter, but they generally require an appraisal to underwrite.

As you review your homeowners insurance policy this year, spend some time on your personal possessions with the same attention to detail that you might if your home was burglarized. You are certain to uncover areas where you are under covered and will most likely discover opportunities for potential savings.

Posted by at 9:25 AM | Permalink | TrackBacks (0)

December is the deadliest month for home fires. In fact, Christmas Eve, Christmas Day, and New Year's Eve are the top three days for home fires. Although unattended cooking and heating are the primary causes, the National Fire Protection Association (NFPA) reports that candle fires triple during the holiday season.

The NFPA also warns us about Christmas tree fires as they contribute to over 300 home fires and 14 deaths every year. Christmas tree fires are generally caused by malfunctioning tree lights, and by the tree being too close to a heat source (fireplace, heater, candle, etc.) When decorating your tree, you should never use lights with worn chords or loose bulb connections, and always unplug the lights before going to bed or leaving the house.

Make Your Home Appear to be Lived-in
Install automatic timers to turn lights and radios on and off at appropriate times. Ask a friend or neighbor to pick up your mail and newspaper, or have it forwarded it to the post office. Lower the sound of your telephone and answering machine so they cannot be heard from outside and make sure your voicemail message does not imply that you are away.

Give a Neighbor a Spare Key
Leave a key with a trusted neighbor in case anything happens to your house while you are away, or in case you get locked out. It's usually not a good idea to leave a key hidden outside your house, especially in more urban areas.

Protect Your House Keys
Don't give repairmen a key, and don't give people fixing your car your entire set of keys. Your house keys can be easily duplicated and your address could be obtained from your license plate number.

Change Your Locks
It is usually a good idea to change the locks on your new home when you move in as you never know who might have keys to your house. If your home does not have deadbolt locks on all ground-level doors, consider installing them. If a sliding glass door is easily accessible, it is a good idea to put a strip of wood in the lower tract.

Consider Installing an Alarm
You may also want to install an alarm if the house doesn't already have one. If you move into a new house with an alarm, make sure you get accurate (written) directions on how to operate it.

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Winterizing a home begins with protecting against freezing temperatures. Heating systems, including fireplaces, wood-burning stoves, and furnaces should receive their annual servicing to ensure reliability and safety. Ideally, these heating systems should keep the home’s internal temperature above 65 degrees to conserve the energy required to maintain livable comfort and prevent water pipes from freezing.

For water pipes that are not naturally protected by the home’s insulated walls (e.g. garage, outside sprinklers), owners should protect the pipes with either heating tape or insulating foam, which are both readily available at most hardware stores. To keep cold air or moisture outside, weather stripping and caulking should also be checked around any structural openings including doors, windows, and faucets.

The Insurance Information Institute reports that water damage and freezing account for approximately 17% of all homeowners insurance claims, while wind and hail account for close to 50%. The average claim for water damage and freezing is $5,095. Standard homeowners insurance policies protect homes against most types of damage caused by freezing, such as a water pipe bursting, or in situations where ice forms in a rain gutter and causes water to backup and seep into the house. Most importantly, home owners must understand that most homeowners insurance policies do not cover against flooding. Unfortunately, many learned too late after their homes were destroyed by the floods that followed Hurricane Katrina. Home owners should consider a separate flood insurance policy to complement their protection, depending on their proximity to possible flooding, because even flood damage caused by storm drain backups are a separate and extra endorsement to a standard policy.

Regardless of the season, the most common mistake people make with regards to their homeowners policy is to undervalue their home and possessions. In fact, experts estimate that 60% of homes in the U.S. are not adequately insured to cover their full replacement cost value. Remember, the full replacement cost value is how much it would cost to rebuild the house on the land it sits on now — not the value for which you could sell your house today. Be sure to also report any recent home improvements to your insurance agent and keep an up-to-date home inventory list so that you can accurately adjust your coverage to protect these items.

Winterizing your home is a convenient time to perform an annual review of your homeowners insurance policy to ensure adequate coverage levels, and to identify any potential discounts. If you have any questions about what is covered in your policy, take the time to contact your homeowners insurance company or agent. And always remember that you may be able to save a significant amount of money by shopping for new coverage as rates are always changing.

* To find out more about the NOAA Climate Prediction Center winter report visit http://www.noaa.go

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A standard homeowners insurance policy provides four fundamental types of coverage, all of which are not affected by fluctuating home prices: 1.) rebuilding the structure of the home, 2.) replacing personal possessions, 3.) liability protection, and 4.) additional living expenses in the event you are displaced from your home.

Those who consider making adjustments to their homeowners insurance policies, nonetheless, are on the right path to optimizing their homeowners insurance to meet their changing financial position. Reviewing the policy every year affords a home owner the ability to make necessary adjustments to their policy limits, be it, adding additional coverage for recent home improvements, or removing extra policy riders for valuable possessions that may have been sold. Rates continually fluctuate, and can vary by hundreds of dollars from company to company, therefore, an annual review also gives home owners the opportunity to realize significant savings by simply getting a couple quotes.

As home prices begin to drop, and the cost of mortgage payments increase, homeowners insurance can offer some financial flexibility that can help offset the increase. In such a case, home owners should look for multi-policy insurance. For example, if your auto insurance company also sells homeowners insurance, you may be eligible to receive discounts of up to 15% off your premium for buying both products. Additionally, increasing the deductible by just a few hundred dollars can make a significant difference to the cost of the premium. Most deductibles start at $250, therefore, if you raise your deductible from that to $1,000 you may save nearly 25% on your premium. Even further, there are dozens of homeowners insurance discounts that go unrecognized by many consumers. Even though they seem ordinary, you may be able get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire retardant roofing material.

Fluctuating housing markets can distort reality, and often times are blown out of proportion by the polarized opinions that informally define them. In the confusion and uncertainty, home owners should not overreact and automatically change their homeowners insurance coverage. Instead, homeowners insurance policies should be evaluated as a whole, taking into consideration the cost of rebuilding the structure, replacing possessions, and protecting against liability lawsuits that threaten the home owners.

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As previously mentioned, most people do not think of preparing for fires in their homes, or if they do, it’s to ensure safety measures are planned out. While a well-thought-out safety plan is definitely the most critical thing to do, it’s also very important to make sure you can get reimbursed for your personal possessions from your homeowners or renters insurance company as quickly and easily as possible. Think about it; can you accurately list from memory everything in your house? Most people cannot, and that is why it’s important to have a list, and, if possible, receipts and purchase information.

A Basic Home Inventory
If you don’t yet have a home inventory, thinking of starting one can seem like a monumental task, especially if you’ve been living in your home for a long time. While the best time to start your list is when you’re just starting out in your first home or apartment, or have just moved to a new home, it can still be an achievable task in that home you’ve lived in for several years. Just start one room at a time. Remember, a partial inventory is better than no inventory at all.

Go room to room and note down every item you see in that room. Try to get serial numbers for the big ticket items, and write down when, where, and for what price you purchased each item. Make sure you remember to go into closets, cupboards, and storage areas and write down the items in these as well.

While some items you own have depreciated in replacement price (televisions, electronics, furniture, etc.), some items may have increased in value (such as art, jewelry, and collectibles). You may need to insure these items separately; check with your insurance agent and find out if your current policy adequately covers these valuables.

Take Pictures Or A Video
It is a good idea to take pictures or make a video of the items in your home. If you take pictures, write on the back the details of the items in the pictures. If you take a video, narrate as you walk from room to room (what items are in the room, when and where you bought them and for how much). Photographing or videotaping your home’s inventory can be especially helpful if items are hard to describe on paper or for items you do not have receipts for.

Store Your List In A Safe Spot
Make sure you store your list, pictures, and/or DVD or video tape in a safe spot. While it’s a good idea to have a copy at home, make sure you have at least one additional copy outside your home. If you only have one copy inside your home (or on your home computer) and your home burns down, that list won’t do you any good. Store extra copies at a friend or family member’s house, in a safe deposit box, or at work. If your inventory is on your computer, make a disk or CD and store it elsewhere, and/or send your list to yourself at work or to your web-based email account so you can access it in places other than your home.

Keep Those Receipts!
Many of us are not great at keeping our receipts for purchases. Now that you’ve read this article, make sure you keep receipts from now on, especially for those big ticket items. These receipts will help you settle your homeowners or renters insurance claim as quickly as possible. And remember, keep receipts (or copies of them) in a place besides your home, along with a copy of your home inventory.

InsWeb Homeowners Insurance Learning Center
How to compare homeowners insurance quotes from top insurance companies.

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If you have a homeowners or renters policy, your personal computer would be covered, in the home, against all of the basic disasters listed in the policy. For example, if your computer is stolen or destroyed in a fire, you would be covered.

Be aware that some insurance carriers, however, have dollar limits for electronic equipment. This means your computer equiptment would be covered only for the amount (generally $5,000) listed in your policy. If you need additional coverage, you can usually raise the dollar amount by paying a little more.

Replacement Cost Versus Actual Cash Value
Consider getting a replacement cost rather than an actual cash value policy for your personal belongings. Replacement cost insurance would reimburse you for the current cost of your computer and other personal possessions, while an actual cash value policy would pay the depreciated cost. Replacement cost insurance is approximately 10% more expensive than an actual cash value policy, but since most items depreciate quickly this can be a very smart investment.

Coverage for Your Computer Away from Home
If you plan to regularly take your laptop or portable computer out of your home, find out how much coverage you have on your homeowners or renters policy for your personal possessions away from home. In fact, some insurers offer complete coverage for possessions away from home. Other companies have a dollar limit for personal possessions that are stolen away from home. In most instances it would be 10% of your personal possessions coverage. This means that if you have $40,000 worth of coverage for your personal belongings, you would have $4,000 worth of theft protection away from home.

Policy Floaters
Consider getting a floater on your homeowners or renters policy, for your portable computer. This policy would cover your computer for its full value anywhere in the world on an all-risk basis.

Special Computer Insurance Policy
Believe it or not, there are a number of companies that offer individual insurance policies for computers. They have a number of different insurance plans and you would not need an underlying homeowners/renters policy.

When you purchase a computer, it is very important to keep the receipt. Also, remember to keep receipts for related items including software, additional memory and other the other peripheral items that computer aficionado's buy over time. This information should be kept in a safe place, along with your inventory of personal items and insurance papers.

Related InsWeb Blog Postings:
- Homeowner Commonsense: Obvious Ways to Protect Against Theft
- Protecting Possessions in College
- Dorm Rooms and Homeowners Insurance

Posted by Inszo at 9:50 AM | Permalink | TrackBacks (0)

In 2004, I purchased a home built in 1989, and over the past two years I have learned some very hard lessons about what a home warranty policy actually covers when things go wrong. I started out with Fidelity Home Warranty and after a year of getting claims denied, I changed to American Home Shield, which turned out to be even worse.

Most recently, I realized my air conditioner was leaking water in my house. The first person who was sent by American Home Shield claimed the leak was from the air conditioning being overused. I complained to the company that I was 7 months pregnant and needed to be able to use my air conditioning without it freezing over, and that I was concerned that the leak would lead to mold in the house. It took three calls for them to send a new company out, and it was discovered that a pipe off the air conditioning had cracked. A few days later, the company that discovered the crack came to fix the problem, and when the wall was opened to get to the pipe, it was discovered that the true cause of the problem was a nail in the pipe. The nail had been hammered through the drywall into the pipe when the house was built 17 years ago and the suspicion is that it rusted over time. At that point, American Home Shield claimed it was a pre-existing condition and would not cover the damage.

I thought that a home warranty was supposed to offer protection for those unexpected little surprises that might come up when you buy a resale home, but instead there has always been some loophole or reason why the claim is not covered. Prior to this, my previous requests for help resulted in frustration, including:

- Right after moving into my home, I was told that my constantly clogged toilets were not covered because they happened to be the first generation low-flow toilets and they were never known to work very well.

- With each season change since moving into my house, I have had to call to repair my air conditioner in the summer and heater in the winter. They’ve always done the minimum necessary to get it hobbling along again, but it has clearly outlived its lifespan and doesn’t actually heat or cool the house efficiently (however, the increase in our electricity bills in the summer would make you think something was being cooled).

- When our pool filter was not doing its job and our pool was in a constant state of green sludge, we learned that the previous owners who had installed the pool chose to cut corners and install a pool filter that was underpowered for the size pool that was installed. However, the filter replacement was not covered by the home warranty company because they are not responsible for improper installations of underpowered equipment.

Posted by Inszo at 11:44 AM | Permalink | Comments (1) | TrackBacks (0)

Bicycles are generally covered by homeowners or renters insurance policies. But you usually are required to pay a deductible that can be a few hundred dollars. Your best bet is to prevent theft in the first place.

1. Purchase a quality bike lock and use it correctly. Use the lock to secure both the wheels and the frame to an immovable object such as a pole or bike rack.

3. Keep the receipt for the bike and any accessories, along with a photo of the bike, in a safe place.

4. Register the bike’s make, model, color and serial number with your local police. It might seem silly, until the moment it gets stolen. You can also register it with the National Bike Registry, a database that helps recover stolen bikes.

5. If the bike is very expensive to replace, consider a “policy rider” to insure it adequately (additional pieces of coverage for specific valuable items).

National Bike Registry: http://www.nationalbikeregistry.com
InsWeb Homeowners Insurance Center

Posted by Inszo at 9:38 AM | Permalink | Comments (1) | TrackBacks (0)

My family learned the hard way about theft. I was 10 years old, when my family sat down for a regular evening meal. It was 6 o’clock in the evening and still sunny outside. Our garage door was open. We suddenly heard noise coming from the garage. My dad opened the door to see a stranger walking off with our lawnmower. Naturally, he chased him down the street and got the lawnmower back. The thief got away. However, we learned a valuable lesson: if you’re not out front, close your garage.

Another time, my brother had his bike stolen from the front yard. This was after my parents “hid” the bike to make him think it had been stolen. I guess he never really learned. Years later, my brother left his snowboard, CDs and radio in his car overnight. Needless to say, they were gone the next day, and my brother was left to clean up the shattered glass.

Now at this point, you might ask, “Where in the world did I grow up?!” It was just an average suburban California city. In each example though, theft was virtually invited.

As a homeowner, it is important to practice commonsense to protect yourself:

• Do not leave your garage door open when you’re not around
• Lock your front door even when you’re home
• Encourage your children to pick up their toys and bikes in the front yard
• Keep windows and sliding glass doors locked, especially at night
• Do not leave valuable items in your car

The list can go on and on. The bottom line is to use common sense when it comes to protecting your home and valuables.

Do you have a commonsense suggestion or tip?

InsWeb Homeowners Insurance Learning Center

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