Tuesday, January 27, 2009

Homeowners' Insurance


Posted by Allison Franklin, Group 1A


Home Insurance: What You Need to Know

By LESLEY ALDERMAN
Published: January 26, 2009

Your home is probably your largest and most important investment — not to mention that it’s also the roof over your head. Here’s how to make sure you get the right coverage.
While plans may vary from insurer to insurer, a standard homeowner’s policy generally has four components.

¶ COVERAGE FOR THE STRUCTURE This is the most important aspect of any policy. It covers damage to your house from fire, storms and other disasters (see exceptions below). It’s wise to insure your home for 100 percent of what it would cost to rebuild it. If destruction is complete — if, for example, your home burns to the ground — you will then have adequate funds. To determine what that amount would be, hire a local builder who can give you an estimate. Or figure it out yourself by using the free calculator at Building-Cost.net. A basic policy will insure your home against major disasters, except for flood, earthquake, war or nuclear accident. (For flood and other coverage, see below.) In addition, it will cover other structures on your property like a separate garage or shed. Some companies cover you at just 10 percent of the value of the structure of your home.

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