Home Insurance

October 19, 2006 at 11:34 pm 3 comments

My home insurance is due for renewal soon so I am looking around to see what I need to get and how I can get at the best price.

This pages summarize what minimum home insurance should cover. The insurance should be enough to cover

  • Cover the cost of rebuilding the home at current construction costs
    • Roughly about $190k for my house
  • Your personal possession
    • Put together an inventory list if have not done so
  • Living expense after a disaster
    • Many policies provide coverage for about 20% of the insurance on your house
  • Liability to others

And if you need more insurance, you can get

Umbrella or Excess Liability.
You should buy enough liability insurance to protect your assets. If you own property and or have investments and savings that are worth more than the liability limits in your policy, you may consider purchasing an excess liability or umbrella policy.

Umbrella or excess liability policies provide extra coverage. They start to pay after you have used up the liability insurance in your underlying home (or auto) policy. An umbrella policy is not part of your homeowners policy. You have to purchase it separately. In addition to providing a higher dollar amount, they offer broader coverage. You are covered for libel, slander, and invasion of privacy. These things are not covered under standard homeowners or auto policies.

The cost of an umbrella policy depends on how much underlying insurance you have and the kind of risk you represent. The greater the underlying liability coverage, the cheaper the policy. This is becaue you would be the less likely to need the additional insurance. Most companies will require a minimum of $300,000 on your home and your car, if you own one.
 

Read more about home insurance here.

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Entry filed under: Expenses, Real Estate.

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3 Comments Add your own

  • 1. How to Find a Home and Auto Insurance « Money Babble  |  November 16, 2006 at 2:48 am

    […] I previously dicussed home insurance here. Since my auto insurance due soon as well, I spent the last couple weeks looking for a multi-policies insurance to cover home and auto (supposely you get greater discount if you combine them).  After much searching, I settled with Farmers Insurance because they gave the lowest premium for all the coverages I wanted and the agent was friendly and answered my questions. […]

    Reply
  • 2. How to Find a Home and Auto Insurance Policy « Money Babble  |  November 16, 2006 at 3:01 am

    […] I previously dicussed home insurance here. Since my auto insurance due soon as well, I spent the last couple weeks looking for a multi-policies insurance to cover home and auto (supposely you get greater discount if you combine them).  After much searching, I settled with Farmers Insurance because they gave the lowest premium for all the coverages I wanted and the agent was friendly and answered my questions. Home Insurance Coverages Terminology […]

    Reply
  • 3. Home and Auto Insurance « Money Babble  |  November 16, 2006 at 3:07 am

    […] I previously dicussed home insurance here. Since my auto insurance due soon as well, I spent the last couple weeks looking for a multi-policies insurance to cover home and auto (supposely you get greater discount if you combine them).  After much searching, I settled with Farmers Insurance because they gave the lowest premium for all the coverages I wanted and the agent was friendly and answered my questions. Home Insurance Coverages Terminology […]

    Reply

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