Your home is probably your most valuable investment. It therefore becomes imperative that you take necessary steps to provide for sufficient protection from theft and natural disasters like floods and earthquakes. What are the types of homeowner insurance? What are the requirements of mortgage insurance? How can you insure your mobile home? Arm yourself with all the facts and figures on home owners insurance and low cost homeowners insurance quotes.
Low Cost Homeowner Insurance
There is no dearth of homeowner insurance policies offered by different insurance companies. Prices vary, the coverage varies and it is always advisable to collect home insurance quotes from different companies before taking homeowners insurance policy. You need to ensure that the home owner insurance policy provides ideal level of protection that you desire, in addition to covering valuables too. The policy and the premium that is chosen will be based on the cover that is needed and your risk tolerance. Some of the popular homeowners insurance options are:
- Basic Homeowner Insurance Policy - This policy will protect the house from damages that may depreciate the value of the house. Basic home owner insurance policy also provides theft coverage.
- Comprehensive Homeowner Insurance Policy - This policy covers fire damage, water damage, personal liability, vandalism and theft.
- Special Homeowner Insurance Policy - Residents living in areas prone to natural disasters should opt for this policy. Houses that are 50 years or older are also encouraged to opt for a special home owner insurance policy. This policy is relatively expensive when compared to other home owner insurance policies.
Shop around for insurance quotes that are reasonably priced yet offer adequate coverage facilities. Even when scouting around for a low cost homeowners insurance policy, do not get carried away by the lowest price. Check out the financial standing and reputation of the insurance company. Many a time, low cost home owner insurance premiums are offset by high deductibles. If you are considering insuring your vehicle also, it may be economical to buy both the insurance products from the same buyer. Additional features such as storm shutters, shatter proof glass and safety devices such as smoke detectors and burglar alarms can reduce your premiums on your home owners insurance.
Homeowner Insurance Quote
Collect homeowner insurance quotes from at least 3 - 5 insurance companies so that you get a fair idea of the kind of coverage options and premium they charge. Alternatively you can collect a list of home owners insurance policy rates from the State Insurance Department. The decision on home insurance should not be solely based on the value of the home insurance quote but also on the reputation of the insurance agency. Online homeowners insurance quotes takes away the hassle of collecting information and rates. Log on to insurance company websites and fill up the online quote form. With a few minutes, you will be given a quote for your home insurance. Each insurance company has its own calculation system and will give you their quote. You will need to provide details about your house, occupants and locality. Houses that have non-smokers may carry lower premiums. It is estimated that smoking accidents account for nearly 23,000 residential fires in the U.S. alone. Senior citizens may be able to avail discounted home owner insurance quote.
Home Mortgage Insurance
Home mortgage insurance covers the lender against a possible default by a borrower on a mortgage. Mortgage insurer is paid for by borrowers in the form of premiums. The premiums can range from annuals to monthly premiums or single one-time premiums. Refundable premiums allow the borrower to take back money on any unused portion if the mortgage insurance is discontinued before the entire term of the loan. This increases the cost of the mortgage insurance slightly.
Home mortgages that are lent with less than 20% down payment by the borrower are required to be protected by Private Mortgage Insurance (PMI). Private mortgage insurance covers lenders and mitigates the risk they have taken. With soaring home rates, it is becoming increasingly difficult for home owners to put down 20% on the home payment. With down payments as low as 3 - 5%, it is little wonder that PMI is being increasingly resorted to. As per the Homeowners' Protection Act of 1998, the private mortgage insurance stands to be cancelled once the buyer has paid the requisite 20% equity on the home. This may not hold good for government insured FHA or VA loans or loans with lender - paid PMI.
Mobile Home Insurance
Mobile homes are more susceptible to extensive damage for the same hazard when compared to a regular house. A fire can wreak more damage on a mobile home than a regular home. Consequently insurance companies place a higher premium on mobile home insurance. Mobile home insurance usually provides protection against most perils other than those specially excluded in the policy. Theft coverage and personal property protection form part of most mobile home insurance policies. This type of policy also pays for alternate living expenses in case of damage to the mobile home. A typical mobile home insurance policy encompasses: theft protection, damage to mobile home and belongings, emergency removal and replacement cost. You can customize your mobile home insurance coverage by providing for trip collision and extended coverage on fire department charges as well as valuables such as jewelry and fur.