Homeowners Insurance Explained

If you are like most people, you will probablylocations, etc.). Please be advised that theft
never need to submit an insurance claim. But noinsurance applies only when a building is ready for
one is immune to bad luck, and it is good to knowoccupancy; vacant buildings are not normally
that the premiums of many people like you areinsured for theft for more than 30 days (see
available to pay for your mishaps and"Vacant premises," page 8).
misfortune,if they occur. Within limits, homeIt pays to compare! Not all home insurance policies
insurance reimburses you for your financial lossare created equal, nor are they priced the same.
arising from mishaps that are generally "suddenWhen buying a new policy or renewing a current
and accidental" and, therefore, hard to predict andone, you may wish to obtain quotes from a
prevent.variety of insurance agents(who work for one
There is no such thing as a standard homeinsurer), and independent brokers (who represent
insurance policy. Because coverage may varydifferent insurers). When dealing with independent
from one insurer to another, it is very importantbrokers, it is important to know which companies
to have your broker or agent explain the policythey represent and where they place most of
to you before you agree to purchase thetheir business.
coverage.Some insurers offer discounts or other incentives
Insurance coverage on your home should begin asfor policyholders who install sprinkler systems and
soon as you become the legal owner ormonitored intruder alarms. Some reduce
tenant,even if the home is still underpremiums for seniors. Employment by a particular
construction.(Your home insurance policy can alsoorganization,or membership in an organization such
cover related building materials on or adjacent toas a credit union or alumni association may qualify
your property.) Before moving, call your brokeryou for an"affinity" discount. Some insurers offer
or agent and go over any special insurance needsdiscounts to loyal, long-term policyholders - a
related to themove (e.g., covering contents infactor worth considering if you have been happy
transit, or simultaneously at both old and newwith your insurer's prices and service.