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Personal Property Insurance – What You Need to Know

houseYou probably own things like home, health, life, and car insurance policies. But do you have personal property insurance for the items in your home? Here is some information on how it works. This particular type of coverage is actually part of your home or renters insurance policy. That is, if you opted for it when you were signing up. It can offer you protection on any items in the home that are not permanently fixed to the establishment. This would mean things such as electronics, books, clothing, and appliances. The majority of carriers cover up to forty percent of the amount that you have on the actual residence itself.

However, there is something you should be aware of. Coverage is still limited further on certain types of valuables. Anything like expensive jewelry, watches, furs, firearms, and other hard to replace objects have limits. Everything like that combined is only covered up to one thousand dollars in a standard contract. This is mainly to encourage people to buy extra coverage, which you would obviously want to do if you bought more fine items.

How to Get Property Insurance

Who enjoys shopping for property insurance? No one. We all hate it. It means calling office after office giving the same information over and over. Who really wants to memorize their 17 digit alpha-numeric Vehicle Identification Number (VIN) in order to get the best pricing? Every person you speak with wants to build rapport with you to win you over from the other three agents or customer service representatives (CSR) you just hung up with and the next one you’re going to call as soon as you hang up the phone. Here are three tips how to shop for property insurance without losing your hair, mind or, more importantly, time.

Property-Insurance1First, you need to understand shopping for insurance is a complicated process, not just for you but, from an agent’s point of view, as well. Property insurance companies require a lot of information in order to determine risk and rate such as age of the property, construction materials, interior features, loss history and most importantly your credit risk. Do not be afraid to disclose your Social Security number. Most property insurance companies require a Social Security number before even proceeding with an estimate. If your identity is stolen by an agent or an agent’s employee, you have plenty of recourse to make yourself whole again. Which ever agent wins your business is required to obtain your personal information anyway so disclosing it upfront can speed up the process. Honestly, insurance companies already have a ton of information on you at their finger tips. It’s just easier and less costly for you to disclose your personal information, initially.

Second, know what your property’s characteristics are. For example, know the year it was built, the exterior building material, type of plumbing throughout the house, the year the roof was replaced, heating fuel, distance to the nearest fire station, approximate dates the electrical, plumbing, and HVAC systems were last updated. Replacement cost estimating software is only as good as the data input. If you want you property underinsured, then only disclose the basic information needed and hope it’s enough in the event of a total loss. Tax assessor websites are getting better about offering property details but even the good ones are still limited in their information. If you have a wet bar, skylights, Jacuzzi bathtub, dual cooing units, elaborate staircase this is the time to disclose that information. No property owner wants to fight the insurance adjuster for extra money at the time of a loss when the wet bar was not disclosed on the application.

Third, be prepared to haggle. After disclosing all the characteristics of your property, discuss the produced numbers with the agent. If you feel the estimate is too high or low, review the data with the agent for accuracy. If you are working with an independent agent (highly recommended) and they are shopping your quote with multiple property insurance companies, it is even more important to ensure they are including all eligible discounts. Make sure you are getting credit for all the available discounts offered by the insurance company, it’s the easiest way to save money on insurance premiums. If you are shopping for home insurance, be prepared to discuss quoting your auto insurance in order to take advantage of the biggest available discount. Most property insurance companies offer large discounts, up to 20%, if you include your autos with your home. Remember, agents and CSR’s are human too and make mistakes, some honest and some not so honest.

In order to save the most amount of money year in and year out, you, the insurance consumer, need to make it a priority to shop your property insurance coverages each and every year when the policy is up for renewal. Insurance companies are always raising rates, some higher than others. If you do not take the time to shop, you will pay more premium than necessary.

Types of Property Insurance Coverage

There are Twelve types of Property Insurance coverage

Replacement cost coverage: Replacement cost coverage is the type of property insurance that will always make sure that the cost of your property assurance is being paid regardless of downfall or increasing of currency. Replacement cost coverage is made easy so that property insurance client, spend less money to get new same type of product that the assurance company does not consider to pay.

Explosion Insurance: Explosion allowance coverage is a kind of insurance policy one needs to have, this kind of a insurance is designed to protect and cover the loss of property due to explosion.

Fire Insurance: This is a type of property allowance that basically concentrated to damages caused by a fire. Fire assurance coverage provides the protection for damage caused by a fire into your property.

Aircraft Insurance Coverage: Aircraft allowance coverage is kind of insurance that deals or designed to protect your property in case the Aircraft crush on your property.

Property Insurance CoverageHome Insurance: Home provision covers both property and Liability,using single premium which covers for all risks. Home Insurance is also known as multiple line insurance coverage, it covers private homes also bond’s various types of personal Insurance.

Theft Insurance: Theft insurance is the kind of property coverage that covers the damage of the property due to burglary, theft etc.

Riot/Civil commotion: This is a type of property coverage that protect or covers your property from the damage caused by the Riot. It covers the cost caused in violent disturbance caused by four or more people in your property. types of provision include an aspect of liability coverage. For example, a homeowner’s insurance policy will normally include liability coverage which protects the insured in the event of a claim brought by someone who slips and falls on the property; automobile insurance also includes an aspect of liability provision that indemninate against the harm that a crashing car can cause to others’ lives, health, or property.

Volcanic Eruption: Volcanic Eruption is a kind of property provision that covers your property against the explosion caused by Volcanic Eruption.

Hail Insurance: Hail Insurance coverage is a kind of insurance cover that protect your property against losses due from hail.

Hurricanes: Hurricanes Insured coverage is the kind of insurance that is designed to cover or protect your property against the losses caused by hurricane

Flood Insurance: Flood Insurance coverage is a kind of property insurance made to cover your property from the damage caused by floods into your property.

Earthquake Insurance : This is a kind of property allowance that is design to cover the damage that has been caused by an earthquake to your property. Rates differ rates are determined on the location you are situated in. Homes made of wood have cheaper rates than Homes made of brick.