- By Kevin Yu
After reading several articles about strategies for insuring homes from the New York Times, I have gained some knowledge of different strategies for insuring a home cheaply and the general idea about home insurance.
Nowadays, the cost of home insurance is rising especially in coastal areas where are vulnerable to hurricanes and flooding. People are likely to find a way to reduce their home insurance’s cost. One strategy that I learn from the article of how to lower insurance cost is by improving roofs, installing roof shingles, and strengthening garage doors. As a result of these implements, one person can lower premiums by 45 percent off the highest rates.
On the other hand, I also learn what are the necessary components that a person need to know about home insurance. Generally, a standard homeowner’s policy has four components:
Coverage for the structure – This is the most important aspect of the policy because it covers the damages to a person’s house from fire or other insured disasters.
Coverage for contents – Most plans will also cover the cost of replacing personal belongings if they are stolen or lost in a fire or other insured disasters. (The standard coverage limit is equal to 50 percent of the value of the structure of a person’s home.)
Liability protection – A standard policy covers a person in three ways. 1.) It covers damage to other people’s property 2.) It covers personal liability 3.) It also covers medical expenses for injuries suffered by others
Reimbursement for additional living expenses - Under this policy, your plan will cover your expenses if a fire or any other insured calamity destroy your home and force you to leave.