In case of any loss, the homeowners policy protects you and your family from any damages to your personal property. Different endorsements and the coverages are provided by the home insurance company and these added endorsements meet the individual needs. To rebuild and repair your home this home insurance is needed.
It does not matter whether you are the owner of the house or a tenant, every one needs to have their home insured to protect from any disasters. There are few basic things which you must know before you buy home insurance to protect your living.
Flood Insurance: Catastrophic losses that occur due to floods is the reason why insurance companies are not ready to take up flood insurance. This was the reason to start National Flood Insurance Program (NFIP). You cannot buy flood insurance if your local government does not qualify for NFIP. To reduce floods, flood plain management regulations has to be adopted. Many homeowners who stay in the flood prone areas will not be aware that they have to buy this coverage. If you do not live in flood plain area then there is no need for you to buy the flood insurance. The buildings and its contents are covered in the flood insurance.
Earthquake Coverage: In the state of Kentucky, there have been many small earthquakes, though they are not big ones. In Kentucky the risk of serious earthquake is fairly low so the insurance companies sell the earthquake endorsements. Coverages are comparably cheaper here. Higher will be the deductible rates and ranges from 3 to 5 percent of the home’s replacement cost. Frame houses are more safe than brick or masonry houses because these houses are more prone to damages when there is an earthquake. You’ll have to pay more earthquake coverage for brick houses.
By Scottie McNelly
After the recent earthquakes in Oklahoma that some felt in Texas, you may have asked yourself if you’re protected from earthquakes by your home or property insurance policy. If you haven’t wondered, this is what you should know: Earthquake coverage is not part of your regular home insurance or property policy. You have no coverage for such an event unless you have bought additional earthquake coverage from your insurance company.
Most insurance agents have this coverage available as an optional package for your regular home, condo, renters, property, or dwelling insurance policy. Although insurance agents have not had to worry about earthquakes for homeowners, renters or property owners in Texas or Oklahoma, after the recent earthquakes that have occurred in Oklahoma, it sure makes us realize it can happen. And as an insurance agent, I want to be sure my customers know their options.
Adding earthquake coverage may be as simple as calling your agent and adding it to your policy. With some insurance companies, you may need to get a whole new policy in order to have this coverage. Take the time to call your insurance agent and find out your options. If your insurance is with one agent who only offers one insurance company, take the time to call an independent agent who has access to many insurance companies. An independent agent will be able to provide you with several choices.
The cost of the coverage varies between insurance companies. Since we are in areas that are not as prone to earthquakes as those in California or on the west coast, the price is not as high as it would be in areas that are prone to earthquakes.
Earthquakes occur all day long all over the world (see http://earthquakes.usgs.gov/). Most of them are not significant, but it only takes one occurrence to damage your valuable property or home. Make sure you know your options and get informed information from your insurance agent. Making smart choices for you is the key to have the protection you need.