Home Security & Homeowner's Insurance Discounts:
Copyright 2006-2009 Home Security
Should a burglary or disaster damage your home and property, there are three words you don’t want to hear: “That’s not covered.” If your homeowner’s insurance policy is inadequate, you could hear that phrase a lot when you least want to.
On the face of it, buying homeowner’s insurance seems like a simple matter: Get enough coverage to replace what could be lost or stolen, to rebuild damaged portions of your home, and to protect yourself if someone is hurt while on your property.
That’s probably why everything the insurance agent told you when you bought the policy seemed so obvious: If a tree falls on the house, the insurance, minus the deductible, will pay for it. If the mail delivery person slips on the sidewalk, it’s covered. Take those scenes to the next level, however, and things get a little fuzzier. What if the tree was felled by ice? Some policies would not cover the damage.
Investing in your home's security may entitle you to discounts on your homeowner's insurance.
Ways To Save On Homeowners Insurance:
Adding a home security system to your home can reduce premiums.
1. Fireproofing your home, adding monitored smoke detectors, or owning a newer home can also make you eligible for policy discounts.
2. If you are a member of a specific group, say a graduate of a certain university or are a senior citizen, special discounted pricing may be offered to you.
3. If you bundle your insurance policies-for example, homeowner’s and car insurance, you may qualify for a discount of up to 15 percent.
4. Staying with the same insurance company for several years may also qualify you for a discount.
Know Your HO Numbers:
The basic insurance policy for home and property is designated by the term HO, obviously enough, for “homeowner”, followed by a number. The original industry standard, HO-1, only covered damage from 11 specific causes, such as fire, lighting, riot, theft, vandalism, and volcanic eruption. The limited nature of the coverage made this a less than popular option for most people, and this type of policy is being phased out in some areas.
On step up the chain is HO-2, which covers against damage from 17 named perils. The additional items include damage caused by snow and ice, and burst pipes and water damage from freezing of the plumbing system. The increased coverage increases the cost, but is well worth it.
A big change comes with HO-3. Rather than covering specific causes and events, everything except specific perils are covered. Floods are generally not included but you can get separate flood insurance through the federal government (In the USA). Exactly what is not covered will be stated in your policy and varies from company to company. While the cost is higher than HO-1, you’re more likely to be covered when something happens.
HO-4 and HO-6 cover only property-not the structure-and most include some liability coverage. These policies are designed for renters and condo owners.
If you have a home that has historical significance, is located on a floodplain, or has any other special circumstances, talk to an independent insurance agent about coverage.
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