InsuranceLecturer — When shopping for homeowners insurance, most homeowners are primarily concern with the cost of the coverage. However, as recent events around the nation have shown, the homeowner needs to focus on many other issues when purchasing homeowner’s insurance.
The homeowner needs the right type of policy to cover their property needs. The policy must contain the proper level of protection. The policy should also contain special provisions for personal property protection on items such as jewelry, your computer equipment and other possessions.
The policy should contain the proper level of liability coverage taking into consideration the homeowners financial holdings, salary and other assets. Finally, the policy may also need to incorporate additional coverage for such things as earthquakes or floods.
When applying for homeowners insurance, the homeowner will need to provide the insurance company with a considerable amount of information.
To provide the appropriate type of policy and level of coverage the homeowner will need to provide detailed personal information including date of birth, social security number, marital status, current occupation, employment history, residential history, criminal history, credit history and insurance history.
The insurance company is entitled to take all this information into account to determine if the applicant is a “good risk.” At the same time the insurance agent takes the homeowners personal information, he or she will need both the “real” and “personal” property information.
(Editor’s note: “Real” property is a legal term for the actual physical structure and acreage. “Personal” property is a legal term for the items stored in the house such as furniture, jewelry, electronics, etc.)
Many factors determine premium costs in a homeowner’s policy. The age of the home, the construction materials used to build it, its location, square footage, heating system, proximity to the nearest fire station and fire hydrant, and the number of rooms are just some of the factors that affect premium costs.
After taking in the pertinent information, the agent will explain the type of insurance policies available, coverage, limits, deductibles, and special coverage tailored to the applicant’s needs.