Homeowner Insurance

Homeowner’s Insurance

People take out homeowners insurance for the same reason they take out car and health insurance: If a home is damaged or someone else is injured on the property, insurance helps owners cope with the financial consequences. Your home is likely your largest financial investment. It is subject to natural disasters, burglary, vandalism, and liability from injuries suffered on the property. In order to insulate your home from such financial risk, you will most likely want to buy the proper level of homeowners insurance.

Homeowner’s Insurance covers both property and liability policies paid by one premium payment. The cost of homeowner’s insurance depends on what it would cost to replace the house and is intended to put the insured back to the state they were in prior to the loss. It combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.

Homeowner’s Liability Insurance

Liability insurance is one of the most popular insurance products available on the insurance market. Integrated in most insurance products is normally a clause for liability protection. However, it is also sold as an individual insurance policy.

Liability insurance specifically protects the insured business or individual against the risk of being sued. Injury, negligence, and malpractice are some of the grounds that cause the insured to be held legally liable.

Business owners seek this type of insurance coverage to avoid losing assets in the event of a lawsuit. Those who are likely to be sued for negligence include:

  • Vehicle drivers
  • Professional service providers
  • Employers
  • Manufacturers

A lawsuit can be filed for a number of reasons, not just accidents. There are many lawsuits that are filed for errors that occurred in in performing professional services. There are also have been cases for cyber liability. This is when a computer system has been hacked and personal data of a client or employee is obtained without authorization. Liability insurance also covers things such as this. It is just as important to make sure that your company has business insurance as it is to have a legal team.

Home insurance policies include liability insurance for sake of injuries that occur on your premises. This will cover bodily injury and property destruction that may happen from a third party. The cost of liability coverage depends on the limits you choose. The limits you choose determine the maximum amount your insurer pays whenever you need to file a claim.

There are two types of liability coverage in home insurance policy: personal liability and medical payment coverage. In the personal liability coverage, the insurer pays for the damages caused to the persons injured. Meanwhile, in the medical payment coverage, your insurer pays the injured party’s medical expenses. Depending on the state, it may be more costly to choose the medical payment coverage.

Insurance companies have different terms and conditions based on the state. Each state draws its own laws on how much liability insurance its residents should have. In most cases, it is the bare minimum of coverage so you should adjust it accordingly.

As with any insurance policy, there is a section that stipulates exclusion in the liability insurance. Be sure to read and examine them and the conditions carefully before purchasing an insurance policy. If you are seeking a quote for liability insurance for your home or business, let National Home Quotes help. Call us today for a quote.


Renter’s Insurance

In most states, insurance on various items or properties are required. This is to protect third parties in the event of accidents. There are thousands of types of insurance products for both business and personal insurance. To protect those dwelling in apartments or other residential properties, renters insurance is the best insurance policy to invest in.

Renters insurance is an insurance product which is not required in most states but is recommended for renters. This type of insurance is ideal for either apartment or house renters. Along with protecting personal items, renters insurance also covers temporary liability and housing protection. For example, it covers medical expenses if someone gets injured on the property. The renter’s protection also covers the lawyer’s fee, if the policyholder is sued by the person unintentionally injured.

Some renters would argue that there is no need to get coverage. However, most leases state that the property owner is not responsible for different types of damages. The reason is that there is no liability on the landlords to compensate for indirect loss caused to the renters, due to direct damage to the property. For example, if the property caught fire due to short circuit, the landlord will bear the cost of reconstruction. In most cases, renters cannot recover for damages, other than medical payments. Moreover, the renters are not provided alternative accommodation in the case of property reconstruction. Along with personal property coverage, renters insurance will also provide protection against the damages caused to others and their properties.

There are certain things to be considered before purchasing renter’s coverage policy. The insurance company will determine the price of the policy based on the fixed amount of all the possessions held by the renter. Hence, the price of the policy depends upon the coverage purchased by the renter. The deductible is another factor to consider while buying renters insurance. The insurance coverage that is subject to deductible would protect everything but the liability coverage, like paying medical expenses for a person injured due to the renter’s fault.

Choosing replacement cost coverage or actual cash value coverage will determine the nature of renter’s policy. A basic coverage plan only pays actual cash value of the possessed items. It is the property’s worth at the time of loss. Instead, replacement cost coverage will protect the renter to the extent of actual replacement. For example, a damaged sofa set purchased 5 years ago will be replaced by the new sofa set. However, precious items, like gems and jewelry have limited protection. Therefore, these items should not be included in the renter’s policy. A separate policy should be purchased for them.

The cost of renters insurance also depends upon the rental location. If the location has a history of thefts, the policy would cost high. Whereas, on rental locations highly secured of thefts have low cost of coverage. Similarly, if the location has a history of heavy claims filed by the previous renter or the neighbors of the property, the policy could have a high cost of coverage. In most of the cases, renters do not consider taking renters insurance because of the worth of personal property they have. Even then, having renter’s coverage will be a good option to protect liabilities.

Renters insurance is a great investment and will cover you in the case of a home fire, or something else that would be detrimental to the property. Get a free renter's insurance quote online today!