Understanding What is Covered on your Homeowners Policy for Natural Disasters

Although you know that your home insurance policy is there to cover damages and disasters of all types, it does not cover every single circumstance. Natural disasters are one of those insurance areas that can get rather confusing because policies will cover many situations yet others are not covered at all. It is very important to know precisely what natural disaster will be covered, and what won’t, so you can prepare for any eventuality.

The natural disasters covered in your insurance policy are called "Perils." Although there is variation among insurance providers, the following list of natural disasters are normally covered by the average homeowners policy.

-Damage resulting from smoke or fires

-Damage from lightning striking

-Damage from snow or hail

-Damage from windstorms

-Damage from explosions unrelated to your actions

-Damage your home sustains from being struck by a vehicle or aircraft

-Damage resulting from objects that descend from above (example: items falling from an aircraft)

-Damage from certain types of flooding (example: malfunction of an auto fire sprinkler)

-Damage to your heating, plumbing, or air systems if it happens because of severe weather

After reading the list above you may think that your standard homeowners coverage will be enough in a natural disaster, however it is vital that you think about the circumstances that the list does not include. Although your policy may be different, the simple fact is that the majority of homeowners policies do not cover some of the most major natural disasters.

Consider the following natural disasters, and ask your agent if your homeowners policy covers them:




-Hurricane damage

Of course, the list above are situations that you will hopefully never encounter in your lifetime, but it simply is not worth taking the risk. Any one of the natural disasters listed here could cause complete and total destruction of your home and your property — and if your policy doesn’t cover it you’d be left with no home and no way to start over again.

Just because your policy does not cover them doesn’t mean you can’t obtain coverage. Inquire about the possibility of adding "Riders" to your policy for a little extra policy fee. The coverage you’ll get with policy riders will really insure that you will be covered in all natural disaster situations.

Five Factors that Affect Your Home and Auto Insurance Rates

Consider the FactorsHave you ever wondered how insurance companies determine home and auto insurance rates? Naturally, the types of coverage you have and the amount for which you’re covered play a large part, but insurance companies look at more factors than the combined costs of, for example, bodily injury liability and collision insurance. What follows are five factors that affect your home and auto insurance rates.

  1. Marital status. Whether you’re single or married plays a large part in determining your insurance rates. In general, married customers are perceived to be more stable and less of a financial risk than single people, so they get lower rates.
  2. Number of dependents. If you have a family that depends on you, you’re more likely to behave responsibly, which results in lower rates. However, you probably also want more coverage to make sure your dependents are taken care of in the event of a major accident, so that can result in higher premiums.
  3. Property value. No matter whether it’s your car or your home, its replacement value is an important factor in determining your insurance rates.
  4. Location. Where you live is important for a number of reasons: crime rates, natural disasters, and distance to fire and police stations. Obviously, the safer your location, the lower your insurance rates.
  5. Your credit score. In all but three states, insurance companies consider your credit score as an indicator of your financial responsibility. A high credit score results in much lower insurance rates.

Changing Homeowners Insurance? Get a Homeowners Insurance Quote Online!

Get Home Insurance Quotes OnlineResponsible homeowners know, there can be any number of reasons to request homeowner insurance quotes. Maybe you’re unhappy with the way your current insurance carrier handled a claim and are thinking about changing homeowners insurance, or maybe you’re getting married and want to see how that affects your insurance rates. However, experts also claim that homeowners who periodically review their insurance policies and compare them to what other companies offer, can sometimes save hundreds of dollars on their premiums or get more coverage for the same price.

Online homeowner insurance quotes
Homeowner insurance quotes through online comparison websites are quick, they’re convenient, and they’re free. Simply fill out your information and you immediately receive a number of quotes that are tailor-made for your situation. None of the quotes are binding, so you have all the freedom you like to review them and decide whether you want to find out more. When you’re thinking of changing homeowners insurance, it’s important to get coverage that’s just as good or better than what you already have. Consider aspects such as coverage for storms, natural disasters, floods and burglaries. Also remember to enquire about how you can lower your rates by installing approved locks or a home security system, and performing periodic upkeep. Last, but not least, it’s essential to look for coverage that reflects the true repair or replacement value of your home, not its market value.

Replacement Cost – Essential

Essential Part of Your PolicyDetermining the cost of coverage for your home in the event of any loss is the most important and challenging part of securing home insurance. The challenge starts from the potential repercussions of not purchasing enough insurance. The only reason why all of us get an insurance for our home is to assure that we can rebuild or replace our houses when its damaged or destroyed. The insurance policy should be matched with home value to a big extent to find out if you are capable to do it.

Importance Of Replacement Cost

In case you live within the area where the market isn’t that big in that specific year, then the amount you pay for your house might be even less than the actual replacement cost of your. Therefore, the replacement cost can be much lower than the value of your house in the current market if the prices are high in the region where u would like to buy your home. If your policy refer that you can get the Guaranteed

Replacement Cost only if your are secure of getting the cash on the values of current market to rebuild your home. When receiving the approximation from the home insurance company it is very necessary to know that it can give you value of replacement coverage costs as well as market coverage value costs, but if any disasters occur when you need to replace your home it is always good to take the cost of the replacement coverage. Remember that replacement cost assessment must not be added with the land value.

Home Replacement Cost-Find the Affect

  • Fees for contractor: around15-20 percent of the total cost of the building will be their fees and it will be even more for larger homes.
  • Fees for architectural and others: This includes engineering, interior design and other fees. Home replacement cost should be included in this.
  • Changes due to Environmental: natural disasters as such hurricanes, floods contribute to reduces the overall cost increases and building materials.
  • Construction of Green: building “green” is an advantage among consumers; such technologies have lend to rise in the cost of construction more than the cost of traditional.
  • Historic homes and rebuilding homes: These are materials which expensive and a couple of craftsmen only are specialized in custom construction.

Fortifying Your Home Against Disaster can Lower Your Premiums

Preventing DisasterNatural disasters are one of the primary reasons that people carry homeowners insurance. But as a direct result of the high cost of living, many people opt to reduce their amount of coverage in order to make ends meet, never realizing the consequences of underinsurance until the unthinkable happens. Experts frequently remind us to compare homeowners insurance to secure the best possible deals, but there are additional steps you can take to both decrease your premiums and better protect yourself from disasters.

Fortifying your home is one of the most effective methods of achieving this. Just as installing a security system will lower your premiums because you’ve just decreased the likelihood of anyone breaking into your home and stealing everything you own, making home improvements that make it more disaster resistant can also yield some insurance premium savings. Reinforcing your roof and installing storm shutters in your home are just a couple of examples of how you can accomplish this, but be sure to talk to your insurance agent to determine what upgrades will bring you the biggest dicounts.

Remember to price out coverage at least once a year by getting homeowner insurance quotes from various providers. Doing this, in addition to making modifications that will strengthen your home against natural disasters, will go far in ensuring the lowest possible insurance premiums for the highest amount of insurance coverage.

Thieves Make Homeowner Insurance a Great Idea

Home Insurance as SaviorMost people carry homeowners insurance because they’re required to, never feeling as though they’ll really ever need it and wishing they had the ability to opt out. Of course, this requirement comes as a condition of the bank’s requirements if you’re mortgaging your home – and once that mortgage is paid off, you aren’t legally required to carry it. But should you continue to do so anyway? The best homeowner insurance advice points to yes. And one of the primary reasons may not be what you expected it to be.

Instances of burglars suing property owners for hurting themselves while in the commission of a crime have seen an increase in recent years. Although they’re rare, and on many occasions they don’t end up in a monetary windfall for criminals, enough have. And they serve to drive home the importance of always carrying a homeowners insurance policy to protect you, even if you live in a part of the country that puts you at minimal risk for natural disasters and the likelihood is slim that you’ll ever need to file a claim.

Whether your home insurance needs are compulsory or self-determined, you can get a homeowners quote online that will connect you with the most affordable insurers in your immediate area.