Homeowners Insurance - No One is Immune to Bad Luck

If you are like most people, you will probably never need to submit an insurance claim. But no one is immune to bad luck, and it is good to know that the premiums of many people like you are available to pay for your mishaps and misfortune,if they occur. Within limits, home insurance reimburses you for your financial loss arising from mishaps that are generally "sudden and accidental" and, therefore, hard to predict and prevent.

There is no such thing as a standard home insurance policy. Because coverage may vary from one insurer to another, it is very important to have your broker or agent explain the policy to you before you agree to purchase the coverage.

Insurance coverage on your home should begin as soon as you become the legal owner or tenant,even if the home is still under construction.(Your home insurance policy can also cover related building materials on or adjacent to your property.) Before moving, call your broker or agent and go over any special insurance needs related to themove (e.g., covering contents in transit, or simultaneously at both old and new locations, etc.). Please be advised that theft insurance applies only when a building is ready for occupancy; vacant buildings are not normally insured for theft for more than 30 days (see "Vacant premises," page 8).

It pays to compare! Not all home insurance policies are created equal, nor are they priced the same. When buying a new policy or renewing a current one, you may wish to obtain quotes from a variety of insurance agents(who work for one insurer), and independent brokers (who represent different insurers). When dealing with independent brokers, it is important to know which companies they represent and where they place most of their business.

Some insurers offer discounts or other incentives for policyholders who install sprinkler systems and monitored intruder alarms. Some reduce premiums for seniors. Employment by a particular organization,or membership in an organization such as a credit union or alumni association may qualify you for an"affinity" discount. Some insurers offer discounts to loyal, long-term policyholders - a factor worth considering if you have been happy with your insurer's prices and service.

Michael S. Anderson
Insurance Expert