For most people, their home is their biggest investment. Usually, it is also their greatest financial asset. Therefore, it stands to reason that when you are choosing Alabama home insurance, it is important to know not only what type of coverage you need but also the amount of coverage that will adequately protect you and your investment.
When people are considering Alabama home insurance, most probably think of natural occurrences which can happen unexpectedly- thunderstorms with damaging hail and wind, tornadoes and earthquakes. It is important to remember that many times, unless specified in your Alabama home insurance policy, coverage for floods and earthquakes are considered “extra”. This means that you have to add them to normal policy coverage (and at additional cost).
Also, people want damage protection from fire, smoke, and other related problems. But there are other circumstances which can warrant having a sound Alabama home insurance policy. It’s important to have protection from possible theft and also from personal liability claims (which can arise from someone injuring themselves while on your property).
There are also some simple things you can do to reduce your risk of loss and minimize the chance of damages. These include installing and maintaining smoke detectors throughout your home, installing a security system, and placing fire extinguishers in high-risk areas.
Remember that the better home insurance coverage you have in effect, the less financial obligation you will have in the event of a claim. Additionally, if you have a mortgage, you may want to check with your lender as many mortgage companies have certain coverage requirements that they expect you to include in your policy.
Once you have looked over the information outlined in this article, you will be able to put together a policy which is right for your needs and resources. You can rely on insuranceUSA.com to help guide you through these facts and offer you straight-forward, affordable Alabama home insurance quotes.
Choosing Your Alabama Home Insurance Policy
There are several things to keep in mind when you are choosing your Alabama home insurance policy. First of all, you need to decide if you want a monocline Alabama home insurance policy or a package Alabama home insurance policy. The monoline policy gives you just one type of Alabama home insurance coverage. For instance, monoline Alabama home insurance often only covers liability. A package Alabama home insurance policy offers several different kinds of coverage, such as property insurance as well as liability. In general, it is more economical to buy a package Alabama home insurance policy.
There are 7 different types of Alabama home insurance policies. It is important to known which one best fits you needs and requirements for a solid Alabama home insurance policy. The seven types are Alabama home insurance policies are:
1) Homeowner’s 1 (HO-1) policy: This type of Alabama home insurance policy is actually offered by very few companies because it covers such limited options. Covered by an HO1Alabama home insurance policy are fire, lightning, smoke damage, windstorm and hail, burglary and theft, explosions, glass breakage, vehicle or aircraft damage, riot and civil commotion, vandalism and malicious mischief, bodily injury, damage to the property of others, civil judgments, medical payments, personal property away and at home, and expenses if forced to live away from home for a temporary period of time.
2) Homeowner’s 2 (HO-2) policy: This covers all the items in an HO1 policy, plus falling objects, damage from the weight of ice or snow, water from plumbing problems, freezing of the pipes and plumbing, electrical damage to appliances, and rupture of water heaters and heating systems.
3) Homeowner’s 3 (HO-3) policy: This is also called a Special Form Policy and it is becoming the most used Alabama home insurance policy. This covers your home for all physical loss, except for those losses that are specifically not covered. These can include earthquake, flood and war.
4) Tenant/Cooperative Owner’s (HO-4) policy: This Alabama home insurance policy insures against damage to the contents of an apartment and against personal liability from damage suffered in the insured person’s unit.
5) Homeowner’s 5 (HO-5) policy: This Alabama home insurance policy covers everything in the HO-3 policy, plus the physical loss of personal possessions, except for those specifically mentioned.
6) Condominium Unit Owner (HO-6) policy: This Alabama home insurance policy is designed for condominium units, and includes all coverage as HO-4.
7) Homeowner’s 8 (HO-8) policy: This Alabama home insurance policy covers all the same items as HO-1, but gives cash coverage instead of replacement cost coverage. This is generally used when the replacement value of property exceeds the market value.
InsuranceUSA.com can provide you with all of the information you need to make the right choice for the Alabama home insurance policy that is right for you!
How Much Alabama Home Insurance Do you Need?
Buying Alabama home insurance means you will need to know your home’s value, which entails determining how much it would cost to replace it if totally destroyed. Many insurance companies require a physical inspection to determine the home’s appraised value.
When applying for Alabama home insurance, you should compile an inventory of your most valuable possessions. Save your receipts from any major purchases, take photographs of things such as furniture and appliances, and make sure you update your inventory yearly or whenever you make a major new purchase.
Buy enough Alabama home insurance to cover any loss you may incur, but not so much that you can’t afford the premiums. Make sure you talk to your insurer if you have any questions.
Feel free to use InsuranceUSA.com to research Alabama home insurance and request a free quote.
Alabama home insurance has a policy “term period” which means the insurance company cannot cancel or not renew a policy unless they are legally-justified in doing so.
Normally, most insurance policies will be cancelled if the policy-holder fails to pay their premiums or they submit fraudulent claims. Other instances, which might warrant cancellation are if the policy-holder is convicted of a crime; they make changes to the property rendering it uninsurable; or if they create unsafe conditions that increase the insurer’s risk.
Usually, after the policy term ends, the insurer, if they wish to cancel or not renew your policy, will have to provide adequate notice.
Non-Renewals and Policy Cancellations
An insurance company cannot simply cancel an Alabama home insurance policy and it must remain in effect for the “term period” provided nothing warrants its legal cancellation. Possible reasons for an insurance company discontinuing coverage during the term period include:
- Non-payment of premiums
- Felony conviction
- Modifying a residence so as to make it uninsurable
- Creating unsafe conditions at the property
- Committing fraud or otherwise submitting false claims
After the policy term period is over, an insurance company can cancel or not renew a policy for any legal reason. In such an event, adequate written notice must be provided prior to the cancellation or non-renewal.
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