Home owner's insurance premium fees
Home owners insurance covers losses occurring from damage or destruction of your home, loss or damage of the contents, and liability coverage for accidents in your home. Many kinds of damage are not usually covered by this type of insurance, such as flooding, earthquake damage, the occasional war damage, and other "acts of God".
The cost of the insurance is based on the age of the owners, location of the property, construction material, age of the property, other factors, and especially the cost of rebuilding the home.
Specific types of insurance cover freestanding homes, condos, and renters.
Certain contents of the home are not covered in a basic policy, such as jewelry, antiques, and home business property.
You can reduce the cost of home owners insurance by:
* increasing your deductible,
* having burglary and fire detection alarms in your home, with alarm monitoring service,
* using the same insurance company that provides auto insurance
* Older homeowners can sometimes get a discount,
* staying with the same insurer over time and making payments on-time,
* shopping around for the best price,
* making your home disaster resistant, with improvements such as storm shutters, reinforcing the roof, and upgrading plumbing and electrical services,
* paying in advance for 6 months or one year.
Homes in disaster prone areas may have higher deductibles for certain kinds of damage, such as wind, hail, and earthquakes. They may also have much higher premiums for this type of damage.
All mortgage providers require the home owner to have home owners insurance, and usually include the cost in the monthly mortgage payment.
Flood insurance is never included in a standard home owner's policy, and can only be obtained from the National Flood Insurance Program, through your insurer. Homes in flood prone areas are required by mortgage providers.
