Homeowners Insurance or hazard insurance is required by most mortgage lenders in order to protect against any damage that can occur with a new home purchase. A home without a lender mortgage may need home insurance as well. The amount of insurance needed will depend on the market value or assessment value of the house. The type of insurance that covers a private residence will have certain options to choose from as well.
What a Home Insurance Policy Can Cover
A new home will need protection against certain types of property damage and hazards that can occur on the new property. The following are several areas of coverage that will be needed for a new Asheboro home:
1. A policy will need personal insurance protection for the homeowner. This can protect against loss of property.
2. A personal insurance policy can protect the policy owner’s home contents.
3. A home that has been damaged from a break in or from a natural disaster incident may not be inhabitable for a period of time. A personal insurance protection policy will cover the additional expenses needed until the original home is back to its inhabitable standards.
4. A home insurance policy will cover liability expenses that can occur on the property owned by the policy holder.
5. The liability section of a new home insurance policy has certain policy territory that allows coverage in additional areas or locations as well. Each insurance policy will need to be evaluated for the specific coverage qualifications of each claim.
Homeowner’s Policy Is a Multiple Line Insurance Policy
Each home insurance policy is a type of multiple line insurance policy. This means that the protective coverage is for property, and the policy can replace or rebuild certain property damage that is covered by the policy. The home insurance policy is a liability coverage policy as well. This indicates that any visitors on the property can be covered by this same insurance coverage for any property damage or bodily injury.
Premiums are the payments made for the home insurance coverage. An indivisible premium is a single premium paid for all risks. The premium amounts paid depend on the market value or replacement cost of the home and the additional properties included in the home policy. These additional costs are referred to as endorsements or riders that are attached to the original policy.
U.S. Standard Forms
Home insurance claims are processed using standard U.S. forms that divide coverage into several types of insurance categories. General home insurance covers both personal insurance protection for the homeowner’s property and covers liability coverage for those invited and visiting guests. A type of additional insurance is needed for water damage or flood damage. This type of insurance protection is called flood insurance and usually costs an additional fee. The Piedmont region of North Carolina is usually not within a flood zone. This status can be researched with the city zoning commission.
Fixed Term Premiums
Most premiums are determined for fixed terms. The insurance protection is for a specific period of time, and this issuance of protective coverage is renewable. There is a perpetual insurance policy that does not have a fixed term. The perpetual insurance coverage is usually a separate type of policy.
Reducing the Cost of Homeowner’s Insurance
Homeowner’s insurance has certain costs that are determined by the market value or assessment value of the house and property under the policy’s coverage umbrella. The following are ways to reduce the cost of a home insurance policy:
1. A house that is located near a fire station will gain cost reduction points since this allows the home to be protected quicker and easier in case of a fire or break in.
2. A sprinkler system installed in the house will reduce the cost of a home insurance policy because the sprinkler system will mitigate any fire damage.
3. Fire alarms increase the value of a home and reduced the cost of insurance protection coverage.
4. Hurricane shutters that are added to a house can reduce the insurance premium bills since hurricane shutters are effective against high wind damage in the event of a hurricane or other tropical storm.
5. A security system that is installed will reduce a home policy premium cost because of its protective value for the home and the home contents.
6. Certain brands of house locks can be installed that are effective against certain types of burglars. Locks can be installed on the house windows, on the house doors, and on the glass doors of the home. A security system that is connected to a protective service will decrease the cost of a home insurance policy as well. These security systems have warning alarms and can send certain security officials to the home in the event of a break in.
Home insurance coverage is available for the Asheboro, North Carolina, jurisdiction and central Piedmont area. Contact Southeastern Insurance for immediate coverage. Personal insurance protection and liability coverage are available for home property.