Not to fret though as there
are still many ways to save on our home insurance policies while still covering the
risks that most homeowners face today.
Policy form types
Before getting into the
various coverage options it will be helpful to get familiar with the Homeowners
Insurance Policy form types available in today's market. There are basically
three form types. Each form number provides progressively broader coverage and
generally at a progressively higher rate.
Form 1. DP1 and
HO1, Basic coverage, extended coverage endorsements available. The form can be
offered along with many extended coverage options as well. It is generally the
cheapest of all home insurance policies to buy into but can be endorsed to
provide a comfortable level of coverage for some homeowners on a
DP2 and HO2 - Extended coverage, additional coverage endorsements available. The
form 2 is often recounted as the most popular homers coverage form in America
today. It offers a balance of coverage and affordability.
Form 3. DP3 and
HO3 - Broad Coverage, sometimes referred to as "All Risk" coverage. Form 3
policies offer the broadest coverage available today but they are generally also
the priciest policy an insurer may offer.
Policy forms beginning with
DP can offer coverage for both owner occupied as well non owner or tenant
Policy forms beginning with
HO offer coverage for owner occupied homes only. The coverage becomes null and
void upon the owners vacancy of the home. Coverage is not valid for tenant
Home Structure coverage
Be sure that your home is
properly valued for insurance purposes. Should we suffer the dreaded loss to our
home. We don't want to be underinsured but we also don't want to be over
insured as well as this adds unnecessary cost to our premium.
Unscheduled Contents coverage
Most home insurance
underwriters will offer unscheduled contents coverage as a percentage at 40 or
60 percent of the homes insured value . With the prices of real-estate in
today's market this can sometimes far exceed the value of our possessions within
the home. If you believe you have excessive contents coverage you might consider
asking your agent if you can reduce the unscheduled contents portion to 30 or 25
Liability coverage is often
considered the most important portion of coverage on a homeowners insurance
policy next to the main structure itself. Review your policy liability limits.
If you find you have 1 or 2 or even 5 Million dollars in liability coverage and
your home is a 150 thousand dollar typical suburban, you might want to consider
a more Affordable range of 100, 300 or 500 thousand in liability coverage. In
some markets the extra liability insurance included in the policy could be a
beef up of a policy to make the asking price more palatable. Never the less
though one should take an assessment of ones liability exposures and attachable
assets from time to time to insure we have enough coverage to protect our
exposures. These occasional assessments can also save us money on our home
insurance premium by knowing the limits of coverage we actually need.
Many Home insurance providers
automatically include some coverage amount for accidental injury in the home.
This coverage is most often referred to as "Med Pay" and considered by some to
be an attractive policy beef up. Often this coverage is anywhere from 500 to
5000 or even 10,000 dollars. When we already have a separate ACA compliant
health insurance policy, this is considered by many to be unnecessary double
coverage. A health insurance policy provides
coverage regardless of whether our injury occurs in or away from home. You may
consider asking your agent if there would be any savings by removing the med pay
coverage from your home policy if you believe you already have a comprehensive
Health insurance Policy.