House Insurance

High Insurance Premiums for Dangerous Areas

There are just areas that are considered “dangerous neighborhoods” so it is not a surprise if the real estate insurance or house insurance in these areas ask for a high premium. It just simply means that if you live in this neighborhood, there is a good chance of your home getting robbed or victimized by malicious mischief. Because of that, your home is considered a potential high risk.

But such is the case in this life. Just look at the infographic below about prison breaks. If there is a high percentage of jailbreaks, you can just imagine the exact numbers of people who get incarcerated this year. And a lot of these crimes done by the perpetrators are in these high risk neighborhoods. So if you still want to risk living in these areas, you gotta pay a high price.

(Click to enlarge)

Source: eLocalLawyers.com

Different Kinds of Insurance Policies

These are the basic kinds of insurance policies. Of course, there are far more sub-categories under these and they differ based on the insurance company and the police that you can afford.

1. Life Insurance. This kind of coverage provides the financial payments to your beneficiary or beneficiaries in case you pass away. This is especially helpful to bereaved family members where the insured is the breadwinner. The funds from the policy can help the family pay for the funeral/burial expense and to help them continue with their lives without having to sacrifice their lifestyles (e.g. residence, education, etc.). The amount that the family will receive will just depend on how much was paid or how much was on the face amount of the policy.

2. Health Insurance. The coverage on health has several kinds under it. It really depends on what kind of plan you have, you can get hospitalization benefits, dismemberment, surgery, doctor’s fees (including consultation), medicines, lab tests and even maternity. Some have clauses that include diseases for women, epidemics, or degenerative illnesses like cancer.

3. Automobile Insurance. The auto insurance seeks to provide protection against vehicle damage or financial losses due to vehicular accidents and/or theft. If you have a liability coverage, that means the company will pay for your financial obligations to the other party for property damage or bodily injury that resulted from an accident.

4. Homeowners Insurance. This policy covers property damage and the liability of a homeowner for property damage and injuries to other people. A standard homeowners’ insurance policy provides financial protection for the house and the items found inside it. With the many natural calamities happening all over the world, it would be good to include damages caused by force majeure in the policy, especially if you live in an area that is prone to earthquakes, tornadoes, or floods.

5. Travel Insurance. This would especially be handy to people who re traveling regularly, whether for work, business, or vacation purposes. The policy can cover reimbursement of travel costs in case there are medical emergencies, death, damage to personal property, or losses. It can even included reimbursements for non-refundable airfares, in case there is a medical emergency.

Learn to Compute your House Insurance Coverage

Do you want to learn how to calculate your house insurance coverage? Well, it is definitely more than just merely taking out your calculator and entering the digits. After all, what will be the numbers that you will enter?

You have to understand there are many factors contributing to the cost of insurance. Some of the things to consider are the location of the residence, the condition of the house, plus the security measures that were installed.

So how do you make computations? Here is a guideline:

1. Engage the services of a licensed home inspector so that you will know the physical condition of your house. The insurance company will include factors such as the damages to different parts of your home when determining the insurance premium. If your house is new, then you may get a good discount.

2. You will need to know how your home was constructed. If you house is made of mediocre materials, then that means that it is not very durable and is prone to damages to the weather and other natural calamities. Homes in areas that are usually hit with natural disasters like floods, earthquakes, and hurricanes will have to pay more.

3. Check the safety features of your house. You can also get a good discount if you have safety features like locks, bolts, and alarm systems installed in your house.

4. If none of your family members smoke, then you can get as much as another 5% reduction in your premium.

5. Theft insurance and/or personal liability coverage will increase your premium. So read the fine print of your insurance policy before signing it. While these extra features can benefit you, it can add up to your premium. So just decide if you want it there or not.

6. One way to reduce your insurance premium to declare a deductible. It is the amount that you are willing to shell out in case of damages before the policy can cover you. So if you are willing to pay a high deductible, then your insurance premium is decreased. Just make sure that you can afford the amount that you declare.

7. If you have other policies with a single company, they might also give you a good price. Additionally, if you are a senior citizen, as if they are offering a special senior citizen discount on premiums

Having house insurance policy is a good thing. Just know how much you can afford to pay.