1. Homeowners Insurance Business & Personal Finance

2. For most of us purchasing a home is the biggest investment to mike during the whole lifetime. And it's reasonable that such an important investment needs reasonable coverage. That's why you need homeowners insurance.

3. What's Included in Homeowners Insurance? Your lender is most likely to require you buying basic homeowners insurance. The basic homeowners insurance includes coverage against the following risks: Theft Fire and lightning Smoke Frozen pipes Ice and snow Liability coverage for cases when someone is injured in your house Court fees Cover your costs in case it's impossible to live in the house due to fire or any other damage.

4. What's Left Out of Coverage? Things not covered by standard policies vary from one company to another, but most likely they will include: damage due to earthquake, flood, nuclear accident, war, act of terrorism and similar. Still, you can purchase additional coverage for such events to be included into your home insurance policy. Wear and tear damage is never included into the policy because it's considered to be maintenance, which is the owner's sole responsibility.

5. How Much Coverage Do I Need? Your lender will require you to purchase minimum home insurance coverage (which is usually the purchase value of your home). However, it's usually not the amount of coverage to meet your insurance needs. Instead, try calculating how much money it would require to rebuild your house entirely and use this amount as the base for getting the right coverage amount. Typically, liability limits are around $100,000,

6. There are Three Ways to Insure the Structure of Your Home 1.Replacement Cost: Insurance that pays the policyholder the cost of replacing the damaged property without deduction for depreciation, but limited to a maximum dollar amount. 2.Guaranteed Replacement Cost: Insurance that pays the full cost of replacing damaged property, without a deduction for depreciation and without a dollar limit. This coverage is not available in all states and some companies limit the coverage to 120 percent of the cost of rebuilding your home. This gives you protection against such things as a sudden increase in construction costs due to a shortage of building materials. 3.Actual Cash Value: Insurance under which the policyholder receives an amount equal to the replacement value of damaged property minus an allowance for depreciation. Unless a homeowners policy specifies that property is covered for its replacement value, the coverage is for actual cash value. For a quick estimate of the amount to rebuild your home, multiply the local building costs per square foot by the total square footage of your house.

7. Factors That Will Determine The Cost To Rebuild Your Home Local construction costs The square footage of the structure The type of exterior wall construction: frame, masonry (brick or stone) or veneer The style of the house (ranch, colonial) The number of bathrooms and other rooms The type of roof Attached garages, fireplaces, exterior trim and other special features like arched windows.

8. 12 Ways to Save Money on Homeowners Insurance

9. Shop Around Raise Your Deductible Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay. Deductibles on homeowners policies typically start at $250. Increase your deductible to $ 500 -- save up to 12 percent $1,000 -- save up to 24 percent $2,500 -- save up to 30 percent $5,000 -- save up to 37 percent

10. Buy Your Home and Auto Policies from the Same Insurer When You Buy a Home Consider How Much Insuring It Will Cost – A new home's electrical, heating and plumbing systems and overall structure are likely to be in better shape than those of an older house. Insurers may offer you a discount of 8 to 15 percent if your house is new. – Check the home's construction: In the East brick is better, because of its resistance to wind damage In the West frame is better, because of its resistance to earthquake damage. – Avoiding areas that are prone to floods can save you about $400 a year for flood insurance. Homeowners insurance does not cover flood-related damage. The closer your house is to firefighters and their equipment, the lower your premium will be.

11. Insure Your House, Not the Land Improve Your Home Security and Safety Stop Smoking – Smoking accounts for more than 23,000 residential fires a year. Seek Out Discounts for Seniors

12. See If You Can Get Group Coverage Stay With an Insurer Compare the Limits in Your Policy to the Value of Your Possessions at Least Once a Year Look For Private Insurance First