Saturday, January 21, 2017
Road of Life Events
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Buying A Home
Whether buying the mansion on the hill or a condominium, your insurance needs are
sure to change. Make sure you don't forget to address some important insurance needs.
In particular, review your home insurance, life insurance, disability insurance
and auto insurance needs.
If you are like most people and have financed your home, the lender will require
a minimum level of homeowners insurance. Even if you paid cash for your home, it's
a good idea to protect your investment with a good homeowners insurance policy.
There are many different types of homeowners insurance coverage, but three of them
are the most common. The first type is HO-1, which is basic coverage. HO-1 covers
your home from specific perils such as fire, wind, lightning and theft. HO-2 also
covers your home from specific perils, but it offers expanded coverage. HO-3 offers
the most coverage. Unlike HO-1 and HO-2 policies which name only specific perils
for which your home is covered, HO-3 policies cover all perils except for those
that are specifically excluded. Other types of homeowners coverage include HO-4
to insure condominiums, HO-6 for renters insurance and HO-8 for old homes.
Home insurance policies provide specific types of coverage. You should make sure
your home insurance policy has the following major coverage provisions:
Dwelling Coverage - This is the most important coverage because it covers
your homes structure.
Personal Property Coverage - This covers any household valuables such as
jewelry, personal possessions and furniture.
Liability Coverage - Provides protection if you are sued because someone
is injured by your family or pet on or off your property.
In addition to the above-mentioned provisions, you should get a separate flood insurance
policy because homeowners insurance policies do not cover damages caused by floods.
Flood insurance is backed by the federal government and covers homes in more than
18,000 communities that have agreed to stricter zoning measures to control floods.
The National Flood Insurance Program (NFIP) provides flood coverage through many
insurance companies and the rates are all the same since they are set by the federal
If you are like most people and finance your home, you should consider obtaining
life insurance to cover your mortgage. When you finance a home many mortgage companies
will attempt to sell you life insurance to cover your mortgage; however, this coverage
is often more expensive than buying an individual policy on you own. A level premium
term life insurance policy is a good choice for affordable protection that lasts
the length of your mortgage. These policies offer level premiums and protection
for durations of 5 to 30 years. Make sure the policy you buy has guaranteed level
premiums for the entire duration.
Disability insurance is one of the most important types of insurance because it
protects your most valuable asset, your future earnings ability. Over your life
you will earn hundreds of thousands of dollars unless you become disabled. If you
financed your home you are responsible for making monthly payments to your lender,
and you need to make sure you're protected in the event that you become disabled
and have a loss of income. A good long-term disability policy will provide you with
a sufficient income stream in the case that you are disabled. Check to see if you
have adequate coverage through work, and if not, contact an agent to obtain an individual
Once you buy a home, it's a good idea to review your auto insurance policy if the
home will be your primary place of residence. Your auto insurance policy covers
your car assuming it is kept at a specific location. If you move to a new home,
you should notify your insurance company. Your rates may go up or down based on
the location of your home. Also, you may want to consider obtaining your home and
auto insurance coverage from the same insurance company since many companies offer
discounts for multiple policies.
Buying a Car
Starting a New Job
Renting a Home
Becoming a Parent
Getting a Divorce
Loss of a Loved One
Child Leaves Home