Sewage Backup Coverage

If you live in an area where floods are a major concern each year, then you know that they bring another potential threat with them: sewage backups. Often severe floods will cause sewage systems to back up into the pipes in your home. Everything from your kitchen sink to toilet and washing machine can be seriously damaged, not to mention the smell and clean up.

There are types of homeowners insurance that can cover this, but they are not offered by every provider. It is also not usually covered under flood protection policies provided by the federal government or private agencies. So you will have to assess the likelihood of flood and sewage backups in your area to determine whether or not you want to seek out this type of home insurance coverage.

The damage to your home from sewage backups could be severe and very expensive to repair. Talk to your neighbors, friends and family to see what they go with, and get some recommendations from your state Department of Insurance.

Improvements & Homeowners Insurance Quotes

Improvements to your home can impact your homeowners insurance quotes, so it pays to keep good records. Don't automatically assume that a major improvement or repair will result in an increase; many improvements or repairs may actually lower the cost of insurance premiums since the home may be in better condition or safer. Another common error is to think small repairs or modifications don't matter enough to mention when shopping for homeowners insurance quotes. The fact is that even small upgrades can result in big savings.

To help get started, make a list of the type of improvement performed, the date of the improvement and the cost paid including supplies and labor. It's also a good idea to keep a copy of any warranty information that may apply. Not only does this help you stay organized for tax purposes and when obtaining a homeowners insurance quote, but will assist in demonstrating the proper care and maintenance of your home when it comes time to sell.

Extended & Guaranteed Replacement Cost Coverage

If your home needs to be completely rebuilt after a natural disaster, the last thing you want to hear is that your insurance won’t cover the full cost. So how can you avoid this? Well, there are two options available to people who want to sidestep this problem: extended and guaranteed replacement cost coverage. These types of homeowners insurance policies account for inflation, changes in property values, and cost of construction materials and labor at the time of rebuilding.

Extended replacement cost coverage will pay up to a preset amount above the policy limit to rebuild a damaged or destroyed home. Usually it is not more than 120 to 125 percent. Guaranteed replacement cost coverage has no limits, so you will not be held to a specific preset figure.

These policies are primarily beneficial to victims of major natural disasters like earthquakes or hurricanes because the sudden increase in labor and materials can drive prices up.

Taxes & Types of Homeowners Insurance

Taxes and homeowners insurance could very well be among the most dreaded topics encountered by most homeowners, and are often of special concern for new homeowners. This year, thanks to generous tax incentives designed to help new buyers become first-time homeowners, there is more reason than ever to understand how taxes and insurance will impact the bottom line. Fortunately, it is possible to reduce the sting associated with each simply by learning how the types of homeowners insurance are likely to impact your annual taxes.

• Mortgage payments are deductible, but fire and/or homeowners premiums are not if the home is your primary residence.
• Mortgage insurance premiums are deductible, but title insurance and mortgage payment protection insurance is not.
• Home insurance premiums for investment properties are deductible, but on a pro-rated basis depending upon the ratio of personal versus rental and/or other investment usage.
• Special situations, such as home office, second home, room rental or other unusual situations may also allow for partial deductions of homeowners insurance premiums based upon the percentage of use.

Endorsements & Riders

Two common terms you may here in the home insurance industry from time to time are endorsement and rider. Fortunately they are not hard to remember because essentially they are the same thing. These are written forms that are attached to your insurance policy. They are there to modify terms and policies or add/remove certain types of homeowners insurance to your existing plan.

For example, if you want to add hurricane coverage to your homeowners insurance, a form would be attached to your policy that adds this coverage along with the appropriate cost and terms and conditions. Simple.

Obviously, endorsements or riders are mainly used when you want to augment your insurance to cover something that you feel is necessary but was not part of your original policy. This way, you can alter your insurance at any time without having to wait until the current policy expires before adding something else you need.

Home Insurance Check-Up

Experts suggest obtaining free home insurance quotes at least once every year to make sure you get the best price and coverage options, but it's also the perfect time to perform a home insurance check-up.

Obtaining free home insurance quotes is easy thanks to online sites that allow users to compare prices and policies from many different providers all in one location. Since you are comparing coverage and pricing options, it's a good idea to review insurance needs with a check-up that covers these essential questions:

1. Do I have enough coverage? Although the sales price of many homes across the nation has dropped in the past 18 months, it is still a good idea to make sure you have enough coverage. Remember, the cost of supplies, labor and other expenses required to repair or rebuild your home may continue to increase.
2. Do I have enough coverage to replace the content of my home? Be sure to inform the agent of any major changes such as remodeling, the purchase of all new appliances or other upgrades.
3. Do I have a "named-peril" or "all-risk" policy? Typically, an all-risk policy covers everything except those items specifically mentioned while a "named-peril" policy only covers those items listed.
4. Do I have inflation protection built into the policy? This prevents homeowners from inadvertently becoming under-insured due to rapidly increasing rates of inflation. Many economic advisors believe the current level of federal spending is likely to lead to increased rates of inflation for the future, so prudent homeowners should consider the value of inflation protection when purchasing a new policy.
5. Do I have building ordinance coverage? Changes in building codes and standards may increase the expense of repairing or rebuilding a home; this policy provides additional coverage that assures your home will be brought back up to standards without the risk of additional out-of-pocket-expenditures on your part.

Hurrican Coverage

Hurricane protection is another type of home insurance that is not automatically included in your basic policies. If you add this to your plan, it will either add a specific dollar amount or percentage to the cost of your policy.

You may also find that your deductibles will be higher when opting for hurricane coverage if you live in areas deemed to be at high risk. So you will notice these higher deductibles more the closer you get to coastal areas of the United States like Florida and the Gulf areas.

The exact details of these types of home insurance plans will be slightly different from company to company. They will also vary between states, since certain states tend to get hit with hurricanes more often than others. Check with your state Department of Insurance to find out what risk level your area is considered to be in and how that will affect your insurance rates. You may then want to start requesting free home insurance quotes.

Flood Protection

Your basic types of homeowners insurance do not usually cover flood damage. Policies that can protect you from this are usually either offered through the federal government or through select private companies. If you live in an area that is prone to flooding and want to insure your home against such damage, ask your current provider if they offer such coverage.

If they do not, you can always obtain free home insurance quotes online from companies that do offer flood protection and consider switching your coverage to that provider. The other option would be to purchase a policy from the federal government. Contact your state’s Department of Insurance for more information on this.

It is also a good idea to have flood detectors installed in basements. This can help you prepare and avoid flood damage, but it may also reduce the cost of that type of coverage, just like security alarms and smoke detectors help reduce other types of home insurance.

Insuring Part-Time & Vacation Homes

If you own more than one home and will be away from either for an extended period of time, make sure that you choose a policy that covers you while you are away. Some types of homeowners insurance will not cover you for the entire year if you are only living in a house for three months out of the year in the summer.

Make sure you specify that a house is a vacation home or if it will be used year-round. Free home insurance quotes for full-time homes would be different from part-time dwellings. The main reason is that no one would be there for large stretches of time at a vacation home to keep up with regular maintenance, prevent fire damage or theft, etc.

If you fail to specify that a house will only be occupied for a small amount of time each year you could run into trouble. If something were to happen that would require you to file a claim while away from the house, you could have difficulty settling the claim.

Liability Coverage

Liability insurance, part of your home insurance coverage, insures you for any bodily injuries or property damages another person may suffer while on your property. This is a type of coverage that you usually have to add to a basic homeowners insurance policy that typically just covers your own home and property.

People who often have guests over, have their children’s friends in the house often or are spending large amounts of time remodeling their home are likely to purchase liability coverage. If someone injures themselves while on your property and your deductible is considerably less than their medical expenses, filing a claim would probably be a good idea.

If, on the other hand, your deductible is $1,000 and the injury is merely a sprained ankle that required an emergency room visit, some pain medication and a co-pay, it would probably just be easier to pay for these out of pocket.