All about Residence Insurance
Residence insurance isn’t a specific insurance type, but simply refers to any
type of homeowners’ policy that you purchase to protect your investment. InsureMe.com
can help you find an affordable policy by connecting you with agents on our
network vying for your business.
What it Covers
Residence insurance is often referred to as a "package policy."
That's because it provides coverage for:
- Damage to the structure of
your home
- Damage to your personal
belongings
- Additional living expenses if
you're temporarily unable to live in your home after it's been damaged
- Liability if someone is
injured on your property
Of course, the specifics of these coverages are determined by what kind of
policy you have and how much you've insured your home for. To help you figure
out what kind of policy you need, let's take a look at some general coverage
options.
Coverage Options
As you shop for residence insurance, you'll notice there are a handful of
policies from which to choose.
According to the Insurance Information Institute (III), the most common examples
of residence insurance include the following:
Limited (HO-1): This bare bones
policy covers 10 perils, including damage caused by fire, smoke, lightning,
theft and vandalism.
Basic (HO-2): This policy covers
16 perils, including damage caused by the weight of snow and ice, frozen pipes
and other accidental water damage from appliances.
Special (HO-3): This is the most
popular residence insurance policy, as it covers all perils, except
for damages from flood, landslide, mudslide, and war.
It's important to remember that this is not an all-inclusive list; there are
other comparable residence insurance policies available for other types of
homes, such as condos, mobile homes, or historic homes.
Levels of Coverage
Once you've decided which type of policy is right for you, you'll need to
consider the level of coverage you need: actual cash value, replacement
cost or guaranteed replacement cost.
Actual cash value: This level of
coverage pays to replace your home and possessions, minus depreciation.
That means if you bought a laptop two years ago for $1,200, you probably won't
be reimbursed the full $1,200.
Replacement cost: This level of
coverage pays to replace your home and possessions without a deduction for
depreciation. This means if you can show you paid $1,200 for your laptop,
you'll be reimbursed for that amount (up to your policy amount).This is
the most popular level of residence insurance coverage.
Guaranteed replacement cost: This
level of coverage pays whatever it costs to rebuild your home and replace your
possessions—even if it exceeds the policy limit. As protection is concerned, this
offers the highest level of coverage.
Saving Money on Residence Insurance
Whether you live in a house, mobile home or condo, you can save on residence
insurance by:
Shopping around. Online shopping
sites like InsureMe.com allow you to compare multiple quotes from local
insurers to find the policy that's right for you.
Increasing your deductible.
Agreeing to pay more out-of-pocket on claims will automatically shrink your premium.
Just remember to choose a deductible you can afford!
Combining your home and auto polices.
Most insurers give a nice discount to homeowners who insure their vehicles with
the same company.
Making home repairs. If you've
recently replaced your roof, upgraded your plumbing, or purchased a new heating
system, you may be eligible for a discount!
Installing electronic alarms and fire
safety equipment. Make sure to tell your agent if you have an
electronic anti-theft alarm, sprinklers or live near a fire department. All of
these things may be worthy of a premium discount.
Find Residence Insurance with InsureMe
Residence insurance is a fact of homeownership. But the right policy doesn't
have to break the bank. Let InsureMe help you find the residence insurance that’s
right for you by matching you with agents on our network who will provide you
quotes.
