Types of insurance include: life insurance that offers protection against the impact of death. Health insurance covers extraordinary costs of medical emergencies. Home and property insurance covers private residences and pays out losses to one's home, loss of use and personal possessions. Home owner's insurance will also cover accidents that happen in the home.
Citizens' home insurance or homeowners insurance is a legal contract between the company and the insured or the home owners. Most insurance companies cover a dwelling in three phases:
- Personal liability includes someone being accidentally injured while on your premises. Examples could be dog bites, accidental damage to their property or falls on icy walkways.
- Additional living expenses provided if you need to live somewhere else due to a covered loss.
- Personal property in your home, i.e., furniture, clothing or appliances damaged as a result of a covered loss.
Most companies offer discounts if you insure your property and cars in addition to you home with on company. Companies also offer discounts if you have not filed a claim for five years or more. If you are a responsible homeowner, you can save on premium costs. Responsibility includes outfitting your home with protective devices like deadbolts, fire extinguishers, smoke alarms, sprinklers and fire alarms.
Citizens property insurance includes protection against most risks to your personal property. Coverage includes fire, theft, and weather damage. Insure your home against floods, earthquakes, or faulty home insurance policies. Property insurance may also cover nuclear incidents, acts of terrorism and war. You will need to have these listed the policy and definitely pay higher premiums in order to receive coverage.
Citizens insurance comes in three types.
- Replacement cost coverage pays the entire cost of replacing your property. This type of coverage is not condition on depreciation or appreciation. This is simply a replacement cost.
- Actual cash value coverage gives you a sum of money for replacement costs minus depreciation.
- Extended coverage pays up to 25% over the costs of normal replacement costs. There will be written into the contract a maximum amount that the company will pay in the case of property loss.
There are calamities to your home and property that insurance coverage will not pay out. These include mold in your home. The U.S. Environmental Protection Agency claims mold in a ten square foot areas can be cleaned up without insurance help.
Standard insurance does not cover damage from sewer backups and sinkholes or sudden gaps the earth's surface from groundwater, are not covered.
Review your home and property insurance at least once a year. Start with a replacement policy and adjust your coverage as you see fit. Your home and property quotes will depend on the square footage, construction and location of your home. Be proactive, however, and include insurance for natural disasters, broken pipes, mold and insect damage. Your premium costs will be higher, but it will be worth it.