Congratulations, you have made a good choice. Choice, what choice is that… well the choice to insure probably one of the biggest investments you’ll ever make. YOUR HOUSE. As a result, you’ll want to protect this most valuable asset from liability exposure and property loss. Here are some things that you may want to think about.


Home Insurance basics

  • Home insurance usually spans two crucial concerns — protection and price.
    The proper home insurance coverage consists of buying the right type of policy, having the proper levels of protection within that policy — including special provisions for jewellery, your computer stuff, electronic equipment, clothes, toys and other particularly valuable possessions — and supplementing this coverage with special protection against natural disasters that are not covered in your basic policy.  Homeowners with mortgages are required by their lenders to have home insurance. Many people may think that the policy terms required by their lenders represent “OK” levels of insurance, but this may not be true. Lenders want to make sure that their exposure is covered, but that can happen without you being fully protected. Thus, it is important that you calculate your needs as well and make sure that they are reflected in your coverage.  The Factors That Determine Your Premiums;


    Household Insurance

  • For a house or home contents, the principal information required is facts such as the construction of the walls, floors, and roof. The insurance company may also consider, among other things, the location of the house (it may be in a flood prone area, for example), or whether there is any business activity being carried on e.g. a shop or office.  In order to calculate the appropriate premium rate, for the Sum Insured, insurance companies will look at any previous claims made by the policyholder, the age and general condition of the dwelling.  Here are two examples:
    1. A wooden house, with wooden shingles, located in an area that is prone to flooding and where there have been                several fires recently.
             Value of house: $50,000.00
             Rate of insurance: $10.00 per thousand
             Premium: $500.00
    2. A concrete house, with clay tile roof, in elevated area, where there is no history of fires or other losses.
             Value of house: $250,000.00
             Rate of Insurance: $6.00 per thousand
             Premium: $1,500.00

    The house in the second example attracts a better rate of insurance because the rating factors are more favourable. The premium for this second house is higher, however, because the value of the house is higher.

  • Some insurance companies give discounts on the insurance if the house is fitted with intruder alarms or fire-detection equipment.  Some wooden houses are not eligible for this type of comprehensive policy.  Separate insurance cover can be taken out against the risk of Fire (and sometimes other Perils).  A wooden house has to be inspected by the insuring company before any determination on coverage can be made.
  • Householders – Under Insurance – The Effects.
  • Householders – Ways to save on your policy.
  • Householders – What Contents Is Normally Covered.
  • Householders – Coverage Againts What Risk?
  • Householders – Among The Usual Extensions…
  • Householders – Property Owners Liability.
  • Householders – What Your Policy Covers.  Give us a call and discuss any of these areas with an Account Representative at Field Insurance Brokers Inc., to determine what extensions you may be eligible for with your Homeowners’ Policy.
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