Author: Ravisankar Poduval
Source: ezinearticles.com
Home owners insurance or home insurance, normally known as HOI, is a very important form of protection that all home owners look to use against hazards that can cripple a home and affect the inmates morally as well as financially.
This sort of insurance works on the same principle as a life insurance but is categorized as a general form of insurance. This is an insurance policy which works from different angles. It tends to protect one against the various types of hazards faced such as floods, thefts, bad weather, and even internal issues like short circuits and so on. This insurance policy also covers the people staying at the premises and affected by the hazard. One of the biggest pre-conditions for the insurance to be effective in case of claims is that at least one of the members as initially listed should be staying at the premises when the mishap occurred.
There is a similar policy for vacant homes as well. This is technically known as dwelling policy. Such houses have lesser or no personal protection and any insurance that is covered is for the premises only. The coverage is for insurance as well as liabilities that may arise due to the same. The premium is sometimes a one time payment and coverage amount is sometimes lower than normal.
An insurance policy is quite easy to avail of. Once you evince interest in a certain insurance company, the officer shall pay a visit to your premises and list the various assets as well as individuals who need to be covered as part of the policy. Then they shall submit a quote specifying the premium that shall be required to be paid annually. Once the consent is given by the customer, the policy document is created. This document is the crux of the policy rules and regulations. Hence, it is very important that the customer reads the document very carefully, checking out all details of the coverage offered. There might be much exclusion, due to which claims shall not be processed and can lead to financial losses later. Of late, there have been many added hazards that reflect the present conditions of the universe. For example, problems like terrorism have been added to present insurance policies as hazards that can destroy a house.
The contract between the insurer and the insured is for a fixed term and the premium is normally paid by the insured annually. These premiums are normally dependent on the types of safety features available within the house, like effective fire fighting systems or good security. Good systems can bring down the premium amount.
Overall, home insurance is an important aspect that all home owners need to look at very seriously. In fact, lots of mortgage lenders insist for an insurance policy as soon as the mortgage starts as this protects the asset and thereby their investment.
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