What is homeowners insurance and who should buy this type of coverage?

Homeowners insurance is one of the most popular forms of personal lines insurance on the market today. The typical homeowners policy has two main sections: Section I covers the property of the insured and Section II provides personal liability coverage to the insured. Almost anyone who owns or leases property has a need for this type of insurance. And many times, homeowners insurance is required by the lender as part of the requirements in obtaining a mortgage.
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Do I need earthquake coverage? How can I get it?
Direct damages due to earthquakes are not covered under the standard homeowners insurance policy. If you do live in a part of the country with high earthquake activity you may want to consider adding an earthquake endorsement to your homeowners insurance policy. This endorsement will cover damages due to earthquakes, landslides, volcanic eruptions and other earth movements.
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What factors should I consider when purchasing homeowners insurance?
There are a number of factors you should consider when purchasing any product or service, and insurance is no different. Here is a checklist of things you should consider when you purchase homeowners insurance. First and foremost, purchase the amount and type of insurance that you need. Remember that if your policy limit is less than 100% of the replacement cost of your home, any loss payment from your insurance company will be subject to a coinsurance penalty.
   In other words, you may be liable for the portion not covered by your policy for this reason alone it cannot be stressed enough "contact your broker" for any questions you may have regarding this.
 Also, determine the amount of personal property insurance and personal liability coverage that you need. Second, determine which, if any, additional "floaters" you want to add to your policy. For example, jewelery,boats and motors, cameras and computer equipment just to name a few? The cost of adding these items to your policy can be far less than the cost of replacement. 
 Finally, once you have decided on the coverage you want in your homeowners insurance policy, you can now decide which insurer you would like to purchase the insurance from. Some people like the idea of purchasing insurance from a mutual company rather than a stock company. You should also decide whether you would like an insurance agent to assist you in your purchasing decision or if you would like to buy the product directly from an insurer without the assistance of an insurance broker.

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What is the difference between an "all risks" policy and a "named perils" policy?

A named perils policy covers losses that are due to only those perils listed in the policy. The perils typically covered include fire, windstorm, hail, and other direct physical losses. An all risks policy covers losses that are due to any peril except those specifically excluded in the policy. It is important to note that all risks policy provides broader protection than do named perils policies.
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What can I do to lower the cost of my homeowners insurance?
There are a number of things you can do to lower the cost of your homeowners insurance. The best thing to do is to meet with your independent insurance broker and discuss your specific insurance needs. It is not surprising to find quotes on homeowners insurance that vary by hundreds of dollars for the same coverage on the same home. 
 This is currently the trend with most on-line insurance quotes.  The reason for this is due to the fact that most on-line quote systems do not and cannot tailor your policy for the specific needs that you may require. For that reason the less expensive quote that you receive on-line, in the end may become more expensive after it is formulated for your specific policy.  Another way to lower the cost of your homeowners insurance is to look for any discounts that you may qualify for. For example, many insurers will offer a discount when you place both your automobile and homeowners insurance with the them. Other times, insurers offer discounts if there are deadbolt exterior locks on all your doors, or if your home has a  monitored security system. Be sure to ask your broker about discounts any that you may qualify for. 
Another easy way to lower the cost of your homeowners insurance is to raise your deductible. Increasing your deductible from $250 to $500 will lower your premium, sometimes by as much as five or ten percent. However, be careful to make sure that you have the financial resources necessary to handle the larger deductible.
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If I have an accident which I think is covered under my homeowners policy, what should I do?

1.  Notifying the insurance company or the broker that a loss has occurred this should be done as soon as you discover the loss.

2. Protecting the property from further damage and/or to making any repairs necessary to prevent further damage; Preparing a detailed list of the personal items damaged which contains a description of the items, their actual cash value, or their replacement cost if you have added the replacement cost endorsement to your policy; 

3. Being prepared to show the company and/or the insurance agent the damaged items; 

4. Completing a statement for the insurance company that details the events that led to loss -- for example, the time the damage occurred, the cause of the losses, etc.
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