Homeowners Insurance | Page 2

Liability Insurance
Liability insurance protects you in case you are sued by a person or persons injured on your property.  An invited or uninvited guest could sue you for damages for an injury occurring inside or outside your home.

Optional Coverage
Depending on where your home is located, other insurance may be needed or required.  Most insurance policies cover loss due to wind, hail, fire, and other events.  But in areas where floods, earthquakes, and hurricanes are possible, extra coverage may be needed to protect your home in case of loss in a catastrophic event.  It may be best to obtain these policies when you purchase your home because there may be a waiting period after your policy begins making it difficult to obtain coverage pending the news of a storm heading your direction.

Co-op and Condo Insurance
Co-op and condominium owners carry two separate insurance policies.  The condo board of directors provides one policy and covers the building’s shared areas such as the roof, elevators, walkways, etc.  This premium is usually included in your maintenance fees.  Your personal policy should cover your personal belongings, structural improvements, liability, and other expenses in the case of fire, theft, or other loss or damage outlined in the policy.  It is essential to understand exactly what is covered under each policy so that you are completely protected.

Tips To Reduce Homeowners Insurance Costs
Insurance costs vary from company to company and there are tips you can use that may lower your costs.  By keeping your policy current and taking advantage of special discounts you may reduce the rate you pay.  Following are some tips that may lower your premium:

• Ask your agent if there are discounts for multiple policies (home and auto)  
• Raise your deductible if possible    
• The deductible is the amount you must pay before your insurance pays  
• Install smoke and fire alarms  
• Purchase a home security system that alerts an outside monitoring company  
• Advise your agent if all residents are non-smokers  
• Try to stay with one insurer for a length of time to obtain a lower rate    
• Some companies offer long-term customers a discount after 3-5 years and again after 10   
• Advise your agent if you are close to or are retired   
• Some companies offer retirees a discounted rate under the assumption they are home more often and catch problems before damage occurs

Review Your Policy Annually
If you pay your annual premium year after year without giving it a second thought, you could be losing money and possibly not keeping your coverage current enough to cover your home in case of loss.  You may want to check with your agent each year, review your policy, and make updates.  Even if your home does not have a security system this year, you may install one the next and possibly be eligible for a discount.  As housing prices increase, so does the amount it will cost to replace your home.  Keeping your policy current to cover its market value insures you against under insurance.  If you have made dramatic home improvements or additions that increase its value, you may want to increase coverage to protect your investment.