Homeowners Insurance - Property Deductibles

Today I will talk a little bit about Homeowners Insurance. This is coverage a mortgage company insists you buy and keep in force for as long as you have a mortgage. This only makes sense as it not only protects their interest, but also your interest in your home as well. So you should find it doubly important to keep it in force.

The first part of your policy is a dwelling limit. This should be the amount it would cost to rebuild your home in the event of a covered loss. It is not the amount you can sell your house for. This is called Replacement Cost. It is important that this amount be true to form. If it's not enough, co-insurance formulas come into play and you can end up with a house that's not covered for enough money.

Also, it is important that all people who own the house and are listed on the deed are named on the Homeowners Policy. The company will only pay the proportionate share of the named-person's interest in the house. So if two people own the home and only one is on the policy, the company will only pay for 1/2 the claim.

There are also deductibles associated with this part of the policy. It can be as little as $50 deductible per claim or as high as $1,000 deductible per claim. The premium will go down with the high deductibles. Sometimes you choose which deductible you want and sometimes the Company will insist on a higher deductible. My Homeowners Insurance deductible is $1,000 because of various claims they paid out on it, (i.e. a tornado, and an electrical storm). We do not switch carriers because the premium is right--even with a $1,000 deductible, and other companies give us problems because of our wood-burning stove. So we stay put.

However, with an additional coverage we were able to purchase that $1,000 deductible will be reimbursed to us. It is sold by an independent company called HomeTec and will be a lifesaver in the event of another claim. The best part is that after 10 years I get all the money I paid into it back. You can find out more at: http://www.myebizsecret.com/?ac=600266. If you join, let me know and I will assist you with handling any Homeowners or Automobile claim you might have. The company offers other benefits and bonuses in addition to paying your Homeowners Policy and Autmbile Policy deductibles.