Home Insurance Questions and Answers

Q1. What is the difference between Home Insurance and Renters Insurance?

Q2. Can I get home insurance again if a previous policy has been canceled?

Q3. Why do people get refused home insurance coverage?

Q4. How can I save on homeowners insurance?

Q5. How do I get the most accurate quote?

Q6. What is the difference between an insurance score and a credit score and how are they calculated?

Q1. What is the difference between Home Insurance and Renters Insurance?

Regardless of any reason, anyone going from homeownership to a rental needs to comprehend some of the differences between home owners insurance and renters insurance.

While both home insurance and renters insurance covers belongings and liabilities, and, in some cases loss-of-use, there are also dissimilarities between the two.

For one thing, renters insurance is less expensive. This just makes logic; the more amount of payout on even a disastrous claim is significantly less for renters insurance than for homeowners.

Homeowners insurance covers the house, garage, and, in some instances, other structures on the property. If a homeowner brings upon a loss from a lightning strike, the homeowners insurance will take care of personal property and repairs to the property. On the other hand, renters insurance merely covers personal property and injury to another party who may have been hurt during the incident.

The majority of mortgage lenders need home owners to maintain home insurance. But even when your home is paid off, you must carry homeowners insurance to guard your investment in case of disaster. Though renters insurance is normally not a requirement, most renters must carry this type of insurance. Both homeowners and renters are clever to invest in coverage to protect their financial futures.

Q2. Can I get home insurance again if a previous policy has been canceled?

Yes. But many companies will not admit you if your previous policy was canceled. Look forward to pay higher rate if your prior policy was canceled.

In the event your home insurance coverage is canceled or non-renewed or you are discarded for home insurance, it is vital to know your rights as a homeowner.

You are permitted to a written explanation of the reasons your application for a policy has been discarded or in the case that your home insurance has been cancelled. Your rights comprise challenging records relating to your claim history, which are kept by the Comprehensive Loss Underwriting Exchange (CLUE), and usually reviewed by an insurance company considering your application.

You can acquire a copy of your CLUE report from Choice Point Consumer Center if you have received a denial letter from an insurer and it has a Clue reference number.

Your homeowner’s policy may not be denied, non-renewed, limited or require premium rates depending on gender, age, color, race, religion, national origin, marital status, geographic location or disability.

Denial must be based only upon “sound underwriting or actuarial principles” which the insurer can employ to provide statistical proof that our home symbolizes greater threat of a loss than other homes the company agrees to insurer.

If you believe that you have been denied coverage or that your homeowner’s insurance coverage has been cancelled or non- renewed unfairly, first get in touch with your insurance company and provide a written explanation of your causes.

In case you do not get a response within thirty days or the reply does not provide a suitable reply contact your state insurance commissioner’s office.

If you have worn out all efforts to persuade your insurer that policy must be accepted or renewed , then try shopping around with other insurance firms since underwriting rules and actuarial practices do differ.

Q3. Why do people get refused home insurance coverage?

There are many reasons. Finding the right insurance deal, when your cover requirements are not accepted to most insurers can be annoying, not to mention expensive and time consuming. In such case you must strive hard on finding solutions for Refused Home Insurance in a quick and straight forward manner, at the very best possible premium.

The reasons to get refused home insurance coverage differ from company to company. Here are a few common ones:

  1. Having very high or very low coverage limits
  2. Multiple claims in a short period of time
  3. Not having central heat or having unapproved heating
  4. Older homes that have not been upgraded
  5. Running a business at home
  6. Bad Credit
  7. Committing insurance fraud previously
  8. Being canceled previously (i.e. for non-payment)
  9. Lodgers and sub-lets are in your house
  10. The house covered by the policy is left unattended for more than 30 days at any time of the year, which requires unoccupied property insurance
  11. Unusual construction methods have been used in the house resulting in a flat roof property or more modern construction like in the case of an eco-friendly house
  12. Risky occupations like sports, acting, any part of the entertainment industry, jewellery making, auctioneer, and others
  13. Valuable collections, paintings, watches, medals, jewelry, and other things of value are stored in the home
  14. The locality of the house is prone to sinking or flooding.
  15. The property itself is of significant value and such requires a high networth cover

These are types of suffering that can lead many major insurance providers to decline coverage on your property. This can lead to numerous unwanted possibilities including potentially unbearable costs in case of fire, theft, floods, and others.

Q4. How can I save on homeowners insurance?

There are a lot of ways to save with your homeowners insurance. You can consider this list to use while shopping online or with a local agent.

  1. Car/Home Discount: Insuring your home and car with the same company often will provide you a package discount. This is a good tool to employ when shopping around. Generally the agent can tell you what percent the discount is for insuring your home and car together.
  2. Deductible: Raising your deductible can lead to considerable savings. It is the best way to have a large deductible to prevent you from using your insurance for small claims as many insurance companies are now adding a surcharge to as little as one claim, and surcharges can range anywhere from 10-85% based on number of claims you file during a given period.
  3. Home Security Systems: Unique burglar alarms can avoid losses and thus make your house less of an insurance risk. Most of any type of security system will help give you a discount, but the type that directly responds to local police and departments are most possibly going to give you the most discounts.
  4. Dead bolt Locks: Dead bolt locks are very reasonable compared to the possible insurance savings, but ensure all of your doors have them because usually the discount only applies if there are dead bolt locks on every door.
  5. Smoke Alarms: Avoiding a fire loss is significant to you and particularly to your insurance company. Claims due to fire are very expensive and insurance companies often give an extra discount for even one fire alarm permanently fixed in the home. In case your company does not offer a discount, take the time to install one anyway.
  6. Sprinkler System: Adding a sprinkler system would also be a something to think upon if you are purchasing a new home or have plans to build or remodel.
  7. Non-Smoking Household: Since a lot of accidental fires are due to smokers, insurance firms are often giving a discount for non-smoking households. To be eligible you would likely need to have a home in which you don’t let anyone else smoke in the home in addition to the homeowners being non-smokers.
  8. Organization Affiliation: A lot of companies provide discount for being affiliated with certain organizations. These can vary from college sororities, credit unions, or just having a certain credit card. Call your service center and inquire for a list of the organization affiliation.
  9. EFT Payments: The majority of firms are now charging up to $5.00 or more for mail payments, occasionally nothing in case you choose to have payments automatically subtracted. And sometimes, the deductions can come from your credit card, so you don’t have to be troubled if the money will be in your bank account when payment time comes.
  10. Credit Rating: Yes, many companies are examining your credit and basing your policy on what is found. Ensure to check if your credit is in good shape, and if it is not, you may want to search out companies who do not credit checks.
  11. High Risk Property Insurance: Verify with your state insurance commissioner of you feel you may be getting turned down for home owners insurance or are paying absurdly high premiums as your property may be a high risk such as in a high crime area. Your state may have an insurance plan particularly for your high risk property that other insurers may be charging you very high premium because of the higher than average risk.
  12. Additional Discounts: There are many extra discounts that may be obtainable such as a reduced senior rate being in a gated condo. Take care to sit down with your agent on a usual basis, if possible right before your policy renews, to see if there are any additional discounts obtainable to you.

Q5. How do I get the most accurate quote?

To start, it assists to review your existing home insurance policy for present coverage and deductibles. In most cases, you will get multiple quotes with an array of coverage and deductibles so you can select the policy and limit that work for you. You can also revise the home insurance quotes we provide to meet your personal needs.

You can even obtain a home quote online. Make sure to select the right insurer who will walk you through the quote process online and offer assistance along the way. Finally, you will also receive a unique quote ID so as to retrieve your quote for up to 30 days.

In order to get a home quote, you need to provide some information. In case you already have a policy and are comparing home insurance quotes, it helps to review your existing home insurance policy for present coverage, limits and deductible amounts. Use your existing figures or and make sure your home insurance quotes evaluate similar amounts of coverage.

A key figure you will need to provide is the expected cost of replacing your house. This refers to the price of substituting the structure and is not equal as the current tax assessment or market value of your home. Additionally, inflation and availability of materials can impact replacement cost.

Q6. What is the difference between an insurance score and a credit score and how are they calculated?

An insurance score is a number calculated by statistical model using information enclosed in a credit report. Insurance scores have been planned to help predict probability of having an accident or filing a claim.

A credit score is a dimension of your ability to sensibly deal with borrowed money. The most commonly used type of score is the FICO or Fair Issac and Company score. This depends on 5 factors:

  1. the total of your current credit balances
  2. how long you have had credit accounts
  3. if you have opened any new credit accounts recently
  4. your history of timely or untimely payments
  5. what type of credit you use

While insurance scores forecast insurance losses, credit scores predict credit criminal behavior. Both are calculated from information in a credit report, such as length of credit history, outstanding debt, bankruptcies, collections, new applications for credit, timeliness of debt repayment and number of credit accounts in use. Insurers or scoring agencies then calculate the insurance or credit score by getting the information in the credit report and allocating positive weights to the favorable information and negative weights to the unfavorable information. Information such as ethnic group, income, gender, age, religion, disability, nationality and marital status are not thought out when calculating an insurance score.

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