ANSWERS: 1
  • Part of owning a home requires protecting it from unforeseen danger by purchasing homeowners insurance. However, read the fine print and shop around for a policy because most of them do not cover every danger.

    Identification

    A home insurance policy acts as a safeguard against catastrophic events, such as a tornado, reports the Insurance Information Institute. A typical home insurance policy covers the entire household, including personal belongings.

    Features

    A home insurance policy includes coverage for damage to the home, but also claims made against members of the home, such as a dog who tears up a neighbor's expensive garden, the Insurance Information Institute says..

    Exceptions

    The standard homeowner's insurance policy does not cover very common disasters, such as flooding or earthquakes.

    Tips

    The U.S. General Services Administration recommends that homeowners raise the standard $500 deductible to $1,000 to save up to 25 percent on their premium. Do not include land prices in your home's value because the land likely will survive any disaster. Buying insurance from the same company as your car insurance can also save money.

    Interesting Fact

    Americans could save a total of $300 million each year on homeowners insurance if they queried their insurer on how to have a safer home, reports CNN Money.

    Source:

    Insurance Information Institute; What is homeowners insurance?

    U.S. General Services Administration; Ways to Lower Your Homeowners Insurance Costs

    CNN Money; Top things to know about home insurance

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