Home Insurance Riders

Home Insurance Riders. Which Ones Do You Need?

Standard home insurance policies cover many types of losses. However, a home insurance rider (also called an "endorsement" or "floater") may be required to cover certain things that are limited or excluded by the policy.

Conditions that Require a Home Insurance Rider:

Personal Property: The personal property coverage under a standard home insurance policy is full of limitations. For example, some types of personal property are covered, but only up to a specific amount and that amount may be only a fraction of the actual value (i.e., jewelry, firearms, collectibles, money, etc.). Additional coverage for the full value of such property may require a home insurance rider.

Electronic Equipment: Coverage for computer equipment and data is often limited by standard homeowners insurance. You may need to purchase a home insurance rider for additional coverage.

Home Business: More than 20 percent of American households double as a business headquarters. Standard homeowners insurance is very limited on coverage for property used in business operations. Most policies are more restrictive toward business-related liability (i.e., a customer is injured while in your home), often excluding such claims altogether. If you operate any form of business out of your home, consider adding a business-based home insurance rider to your policy.

Secondary Residence or Income Property: If you own another home that is used as a secondary residence or rental property, you may be able to obtain coverage for that property by adding a rider to your current homeowners insurance policy. If available, this method may be cost effective versus separate policies for each property.

Sewer and Drain Back-Up: A backed up sewer or drain can cause significant damage to your home. This type of loss may be excluded under your homeowners insurance. If so, a home insurance rider may be necessary to add this coverage.

Theft: Coverage under your insurance policy may be limited for theft of personal property. A home insurance rider may be available to increase coverage for loss caused by theft.

Home Inventory

A Home Inventory of All Your Valuables

Home burglaries are on the rise, and law officials are tying the cause to the current economy. Have you taken a home inventory of all your new holiday gifts? Did you know that if you were one of the many victims who had their new flat screen TVs, digital cameras, computers, or jewelry stolen, that your home insurance policy limits coverage of valuables to $1,000 for jewelry and $5,000 for antique furniture and electronics—combined?

In addition to taking precautions to prevent criminals from breaking into your home, it's smart to take a home inventory of all your new holiday valuables and add an endorsement, or floater, to your home insurance policy. For a small, additional amount per year, you'll be able to protect all those new holiday gifts and start your New Year off on the right foot.
Taking Home Insurance Inventory—An effective way to take home inventory of all your valuables is to use that new digital video or digital camera you received during the holidays. Going around your house, take digital images of all the items you want covered on your home insurance endorsement, remembering to include serial numbers of electronic items. It's also important to keep all your receipts in a safe place, keeping extra copies in your safe deposit box, or scanning and keeping electronic copies of receipts on your computer (just make sure to back it up). You'll thank yourself later when you have a full home inventory each year due to big purchases.
Actual Cost Value vs. Replacement Cost—Just like a new car, electronics such as a flat screen TV loses value the minute you drive it off the parking lot. So as you're making your home inventory, it's important to know that there are two types of endorsements for coverage of valuable items—the actual cost value of the item determined by the insurance company versus the full retail cost you would receive to replace the lost, stolen or damaged item. While replacement cost coverage does cost a bit more, talk to your insurance agent to determine which type of coverage works best for you. It's smart to do some research and consider at least three Home Insurance Quotes
Valuables Appraisal—In line with the actual cost value versus replacement cost coverage, if you're adding an endorsement for a new piece of jewelry or valuable antique, you'll need to determine the level of coverage through an appraisal. As with the purchase receipts, keep an extra copy of all appraisal documents in a safe place.
Keep Your Home Safe—In addition to taking a home inventory, it's smart to take precautions to prevent criminals from breaking into your home in the first place.
Use sensor lights outside your property.
Automatic timers for inside lights will give the impression that someone is always home, even when you're not.
Install a security alarm and heavy grade locks. Ask your insurance agent about potential discounts on your homeowners insurance policy you can receive as a result of these security measures.
Install solid core or metal doors, along with double-pane deadbolt windows, which can be a significant deterrent for criminals.

Buy Home Insurance

How to Buy Home Insurance

In the midst of the current economic doom and gloom, many people are finding a silver lining. They are finally able to buy a new home of their own. As home prices drop and mortgage rates reach historical lows, you may learn that a mortgage payment is at or below what you are paying for rent. Bottom line: if you've got the money and good credit, now is a prime time for buying a new home or a second home as income property.

While you're shopping for bargains in real estate and mortgage rates, it's important to shop for the best price when you buy home insurance.

First Time Home Buyers—Homeowners Insurance Checklist
As a first time homebuyer, you may be overwhelmed with the many tasks involved in home buying, from contracts and closing costs to inspections and earnest money. But the best way to avoid surprises and reduce the stress is to educate yourself and prepare.

This homeowners insurance checklist will help you know the steps to getting your insurance in line while also ensuring you buy home insurance with the best price and policy that fits your needs:
Buy home insurance before closing. Know that your mortgage company will require that you have the policy in place prior to the closing of the home, and that you can shop online for homeowners insurance anytime, 24/7.
Save time with multiple quotes. By shopping online for home insurance, you can receive and compare multiple insurance quotes based on the submission of one application. This enables you to get the best price and policy for your new home. If you're looking to buy home insurance, make sure to consider at least three Home Insurance Quotes
Save money with multi-policy discounts. If you have a car or multiple cars, health insurance or other insurance policies, make sure to ask what discounts are available by rolling all your policies together with one insurance provider.
Buying a townhome or a condo? A homeowner's Hazard Insurance policy on your property covers the principal balance on your home loan. When you buy a townhome or condo, this is typically included in your monthly Homeowner's Association (HOA) fee. But it typically covers only any damage done on the outside of the property and not the contents or personal liability. Make sure to work with the insurance agent to ensure all aspects of your property are covered, inside and out, and what you may want to have in terms of liability coverage.
Going with an FHA Loan? If you are taking advantage of the low down payment option of 3.5% to 5% available in an FHA loan, know that you will be required to purchase Mortgage Insurance, or Private Mortgage Insurance (PMI), in addition to when you buy home insurance. This is required primarily for borrowers making a down payment of less than 20% and protects lenders against some or most of the losses that result from defaults on home mortgages.
Where do you live? Different parts of the country can suffer from different acts of nature. Make sure to take this into account when you buy home insurance and consult your agent about protecting your home in the event of flooding, hurricane, fire, or even damage from an ice storm.
Final details.
The first year and subsequent years of your homeowners insurance is paid in advance through an escrow fund set up by your lending at closing, and is then rolled into your monthly mortgage payments.
Once you decide on your homeowners policy, have your insurance agent contact your lender and title company to provide them with the necessary proof of insurance documents.

If you already own a home and want to upgrade, downsize, or buy a second home to rent out as income property, all the same money saving tips apply for when you buy home insurance for those properties. Even if you're not buying a home but are re-financing your existing home to save money, why not shop around for homeowners insurance as well? You may be pleasantly surprised at what you find.

Home Contents Insurance

Sorting Through Home Contents Insurance

Home and contents insurance and home contents insurance is sometimes used synonymously but can be different things depending on your circumstances. Home and contents insurance is an all-inclusive home insurance policy that will protect the home itself and the personal belongings inside the home. Home contents insurance is a policy that includes only personal belongings and is also known as renter's insurance. Okay, this sounds simple enough, and it would be except that there are a number of different policy decisions and coverage limits that must be understood to make the best purchasing decision possible for your insurance policy. And, to that end, here's what you need to know.
Different Levels of Home Protection

Home and contents insurance has become the most common form of home insurance and is also more common than renter's insurance. But not all home and contents insurance is created equal, either. Along with a basic recognition that not all home insurance policies cover contents, it's important to understand the different levels of home protection.

HO-1 and HO-2: These are the basic types of home insurance. HO-2 covers more perils than HO-1 policies, but neither typically cover the contents of your home. In rare cases, it may be cost-effective to buy a supplemental insurance rider for contents insurance, but most of the time, a more comprehensive policy is the way to go.

HO-3 and HO-5: When it comes to home and contents insurance, HO-3 is the most confusing, although also the most popular form of home insurance. HO-3 policies will cover any damage to your home not explicitly excluded in the policy (typical exclusions cover things like nuclear war, acts of God, governmental action). But most HO-3 policies only cover personal belongings in specific, enumerated cases. HO-5 policies, by contrast, are the most comprehensive types of home insurance policies and typically cover home and contents in all cases not explicitly excluded in the policy.
Don't Underestimate Home Contents Insurance

Whether it's part of a home insurance policy or a separate renter's insurance policy, too many people underestimate the importance of home contents insurance in light of how much stuff they actually own. You probably know the price tag for your television and computer, but once you take an honest look at your closet, furniture, golf clubs, exercise equipment, vacuum cleaner, etc. you have many thousands of dollars worth of belongings. Keep in mind that in the event of a fire, burglary, or other insured peril, you will need a check for the replacement costs, not current market value, to get your life back in order.
Home Contents Insurance Tips
If you're renting a property and already have auto insurance, you may be able to obtain home contents insurance for just a few dollars a year. Most insurance companies offer multiple policy discounts, and by applying this discount to a renter's policy, the leftover costs may be peanuts compared to the financial protection
One of the biggest policy decisions you'll need to make is whether you want the coverage to account for the actual contents of your home or a set dollar amount. If you have high-value assets, you may need to give the insurance company an inventory of the items you want insured. If, on the other hand, you have but the usual clothes, TV, computer, etc., a fixed ten-thousand dollar coverage limit might be the easiest and most effective policy.
Don't take renewal for granted. Not only should you look at different quotes each policy term, but if your insurance includes an itemized list, it can be critical to keep your insurance company updated on any significant changes in value, such as antique that has appreciated over the last year.
Finding Home and Contents Insurance Quotes

The best way to find quotes for either home and contents or just home contents insurance is with an online referral service, like NetQuote. To get the best deal and insurance value possible, you need to get quotes from several different reliable insurance companies. This is precisely what we offer at NetQuote when you take but a few minutes to fill out a simply online form with some very basic information. Better yet, you can review quotes and talk to insurance agents from the comfort of your own home, giving you the home field advantage and reducing overhead costs for the insurance companies, allowing them to offer more competitive rates.