Guest Post


Wednesday, 13 June 2012

Choosing Home and Building Insurance

If you own a home or property of any kind, it may be beneficial to obtain insurance for your property.  Disaster can strike at any moment, and having insurance provides you with the peace of mind that you will be covered if there will be any sort of disaster.  Selecting the right amount of insurance for your home or business property is always a challenge and dependent upon several varying factors that are unique to your situation and circumstances.

When determining the types and amounts of buildings and home insurance to obtain, consider the value of the property you own.   It is generally not advisable to insure the property for more than its current value, unless the cost associated with replacing the location are significant.  In addition, you should consider the likelihood of each disaster occurring and the geographic area where your home or property is located.  While it may be nice to have flood damage insurance, if your home is nowhere near a body of water, it may not be useful to have a significant amount of flood insurance and you may be able to trim this insurance for a lower premium payment.  In addition, you should always consider your financial circumstances and ability to pay these amounts of insurance and adjust the amount of your deductibles to meet your financial capacity or adjust your overall profit on your investment property.  Also consider any required insurance that you are mandated to obtain in accordance with your mortgage loan, which will help to protect the lender in case of your financial disaster. Finally, when selecting home and property insurance pay attention to the quality and reputation of the insurance company before selecting one, to insure that you are properly covered.

There are several types of home and property insurance out there that can be considered.  Homeowners insurance is a popular form of insurance that is generally mandated by your mortgage lender.  Homeowners insurance protects you from most environmental disasters including earthquake, flood, and tornado damage.  In addition, it protects you from theft of your home.  Homeowners insurance does not provide protection for routine repairs and maintenance.

Property and casualty insurance is another type of building insurance that is generally used with investment and business property.  It provides much of the same insurance that homeowners insurance does, but provides protection against lawsuits against your business in case of damage caused to others do to your property.

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