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Home Insurance

The best way to guarantee the safety of your property is buying the proper home insurance. Home insurance provides coverage for the damage of your home. Home insurance may consist of a basic or standard range of up to the very sophisticated or premium packages, that cover not only the house but also its content and your personal items.

Carefully read your home insurance policy before you sign it in order to avoid unpleasant surprises in the future. However, you can get an extra policy to cover a few exceptions (e.g. flood and earthquake). Ask more details about the additional options, particularly if you reside in a high risk area (e.g. close to the ocean or to the river).

There are two types of home insurance. First type is fixed-term contracts, which related to a certain time period and premiums need to be paid every term until the expiration date. The other type is perpetual insurance that related to unlimited time period, but this requires a deposit premium from the insured part and is calculated according to their salary. Each of these home insurance types has its own benefits. E.g. term insurance is relatively cheap, but should be renewed annually. For perpetual insurance it's required a larger amount of money to be paid at once, but it saves you the annual payments and you don't need to worry about your policy renew in time.

According to ISO the main types of home insurance policies are:

    HO1/Basic policy is a home insurance coverage that protects from damages or losses including fire, lightening, theft, vandalism, malicious mischief, windstorm.
    HO2/Broad policy covers all risks listed in HO1, and adds some specific disasters, such as snow, falling objects, rupture or bursting of steam, freezing or discharge of water from plumbing, heating, air conditioning, and electrical surge damage.
    HO3/Special Form. Many people purchase this type of home insurance coverage because it covers your property from any risk except of some exclusions like damage from floods, earthquakes, war. In order to understand all the exclusions, read your policy carefully. You can cover these exclusions additionally.
    HO4/Tenant's (or Renter's) policy safeguards your house contents and personal items (it does not covers the building) from the risks specified in the HO2 policy. This type of policy also provides additional living expenses coverage, liability protection, and medical payments. Tenants do not own the building in which they live, so they have no need to insure the building.
    HO6/Condominium policy provides broad coverage and liability protection for the condominium unit. This kind of policy is comparable to the renter's policy and covers the condominium unit items. It doesn't cover the condominium structure.
    HO8/Older homes policy. This home insurance type covers the same risks as HO2 but pays only for repair costs or actual cash value, because replacement cost could make the policy expensive. It suits well for older homes whose market value is significantly lower than the cost to rebuild them.

Before making a choice of home insurance, it is important to shop around for the best deals, compare prices and companies. In general, cheaper offers are not the best, so try to pay attention to the reputation of the company. Insurance company will be glad to provide you the necessary home insurance policy, if your house is a relatively new, it has solid structure, and it is built with solid disaster resistant materials. Having up to date of the electrical, heating and plumbing systems is also welcome.

You can also get a discount if your house is located in a safe place, e.g. close to a fire department. Always ask for discounts, particularly when your house has a security system.

Making a combined coverage from the same company for your home and vehicle may also do some additional savings for you.

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