Home Insurance Online

Do you need home insurance?

If you are a homeowner, you are probably well aware of how important it is to have the house insured. From fire to burglary, there are dozens of dangers that threaten your house every day and having good insurance can give you peace of mind.

Depending on the coverage, home insurance will reimburse you for the loss of your home and belongings due to an accident or theft. No matter how careful you are, accidents do happen and insurance can help relieve the financial sting.

Even those who don't own their own house would be wise to look into home insurance. Renters and condominium owners are also in danger of losing everything if they don't have good coverage.

What kinds of coverage are available.
Everything from your fine china to the lawn tractor can be covered under some insurance policies. Others provide coverage only on the building itself. It's important to know what kind of policy you have and what it covers if an accident should happen.

There are three basic types of home insurance:

Comprehensive coverage applies to both the building and its contents (excluding items named specifically in the policy).
A basic or named perils policy covers your property only against dangers that are named in the policy, such as fire, earthquake or flood.
A broad policy provides comprehensive policy on the building, and named perils on the goods inside. It is usually cheaper than a comprehensive policy.

What is a named perils policy?

Named perils policies are designed to cover accidental damages to your house. Policies can be bought for fire, explosion, water damage, theft, hail and electrical current.

Additional coverage can be bought for perils not normally covered in a home insurance policy. Theses include earthquake, sewer back up and furnace oil spills.

Know what you own.

If your insurance plan covers the contents of your home from theft or damage, it is a good idea to keep an up-to-date list of everything you own. A good way to do this is to videotape the contents of every room, including things stored inside furniture, jewelry boxes and closets. If you have a written list of your contents, make sure you include any identifying marks, such as a serial number. It may be a good idea to keep all the receipts of major purchases with this inventory.

Note: do not keep this list in the house. It will do you no good if your house burns down, taking everything with it. Keep the list at the office or stash it at the home of a friend or relative. You can even put it in a water-tight container and bury it in the yard if you want. Just remember where you put it.