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Home Insurance Agency – What Savvy Homeowners Need to Know As a homeowner, a home insurance agency provides financial security and peace of mind. Homeowners insurance is not actually required as far as the law is concerned. Generally, a lender will require the property to be covered. Then they will be willing to sign off on the mortgage. This assures the lender will be paid in the event of a significant loss to the property. Every insurance policy is not the same for every home. Just like car insurance policies can be different, so can home policies. There are several factors to consider when choosing a home insurance policy. Here are three important factors to consider: The Building Itself and Household Insurance The house is an important aspect of the insurance. It will create differences in rates and coverage. Just like with car insurance the car matters. The house matters with household insurance. Location is of course one of the most important aspects. The same aspects of location that make a home desirable do not affect insurance. The distance from schools or parks or shopping are not important for the insurance rates. The distance to the nearest fire department is important. The risk of natural disaster significantly influences the insurance rate. The location can not be changed so the location risk is fixed. The design of the house is important, too. A two story house may be more expensive to insure. The same size house that is one floor will be less expensive because of lower rebuilding costs. The age of the house matters, as well. Newer construction techniques are more likely to withstand problems. A newer home often is easier to insure than one that is otherwise similar, but older. A major issue is the electrical wiring. Old electrical wiring can be the cause of electrical fires. Houses with newer wiring, whether they are newer construction or updated wiring, are a better choice. Insuring Family Heirlooms on Household Insurance Policies Most household items are covered under the general contents insurance portion of the policy. A TV or a household computer have specific values. These can be easily established should there be a loss of those items. Heirloom items can be much harder to value. Those items passed down through several generations can be the hardest to value. The sentimental component makes items hard to value for the homeowner. Items that are not readily available any more are also difficult to evaluate. It is important to have an objective appraisal for all of these items. The higher value the items are the more vital it is. Jewellery from your grandma should be evaluated by a jewellery expert. China from your great grandma should be appraised by a professional china appraiser. Each heirloom should be appraised by an expert in that area. Have the appraisals completed by an objective, third party expert. Sometimes, the home insurance agency may allow an heirloom to be valued at higher than market value. Ask your agent. Every few years have each item reappraised. The coverage for that item can be adjusted with each new appraisal. Your home insurance agency can help in the process of acquiring the appraisals. Home Insurance Agency Policy Perils and Exclusions Every home insurance policy is unique. There are some similarities when it comes to perils and exclusions. Perils are the types of risks that are covered by the policy. An exclusion is an event/loss that is not covered by the policy. Most policies cover fire, vandalism and theft. The differences between policies, and the rates charged, are about what is excluded. A lower rate with a lot of exclusions does not offer much in the way of peace of mind. Common exclusions are: Nuclear Hazards. Acts of war and terrorism. Earthquakes. A separate policy can be purchased in addition to the basic coverage. Household maintenance. This includes wear and tear, and damage by pests, rot, mold, and rust. Defamation liability. Claims made against the homeowner for slander or libel. Mechanical breakdowns. Floods and the resulting water damage from floods. Flood insurance policies are available in most areas. This is in addition to the basic policy, just like the earthquake policy. Personal injury liability may be covered, if it is requested. This includes issues like slip and fall injuries or pet bites. When buying a home, it is possible to choose a home that will be less expensive to insure. Check where the closest fire station is. Check the age of the electrical wiring. Know the risk of natural disaster. Then add flood or earthquake insurance. Cover heirloom items based on their professionally appraised values. A home insurance agency will outline the options for coverage to give you good value and peace of mind.