WHY YO NEED BOTH CAR AND HOMEOWNERS INSURANCE COVER AS UPDATED 2019 (SIMILARITIES AND DIFFERENCES

CAR AND HOMEOWNERS INSURANCE (SIMILARITIES, DIFFERENCES AND BENEFITS)

Car and Homeowners insurance in simpler form means buying two or more insurance policies and these policies have their own benefits. A policy holder may want to opt in for both of these policies to take advantage. There are similarities and difference between car (property) insurance policies and home insurance policy. Applying for both car and home insurance policy is like two insurance companies offering discount on two different products and taking advantage of them at the same time.

For example company A offers a discount on car insurance and company B also offers discount on Home Insurance, you decided to go for one before the knowledge about the discount offered but because these two companies are offering discount, then you made a decision for to buy both products, having both products kills cost and increases insurance security.
In a quick review, we shall be highlighting some of what home insurance and car insurance offers and do not offer…

 A homeowners insurance policy have certain things it does not cover for example, there are some perils that are not included in the policy because of “exclusions” written on them. Some natural disasters and there are also some natural disasters that are not covered by homeowners insurance which include:

a War:  In the case of war and terrorism, homeowners policy will not be effective.

b Termites and other Insects: This means there will not be  claim or homeowners will not seek for damages replacement if it was affected by termites or other insects.

c Mold: Unexpected or emergency accumulation of mold may be covered but when it accumulates gradually over a period of time and its not been looked into, then there will be an exclusion or limit to what will be offered.

d Pollution: Homeowners will not seek or claim any damages caused by another party. Pollution like sewage or release of pollutants, dispersal and others unless it was caused by “covered peril” then there may be a claim.

e Earthquake: This is sometimes excluded in most homeowners policies but can be added by endorsement or the policyholder takes a separate policy for it.

f  Flood: It is definitely not covered by this policy. Flood Insurance is a policy on its own (By the Flood Insurance Policy).

Also on the auto/car insurance there are gains that are covered by the policy. There is a “RISK TRANSFER STRATEGY (RTS)” which is the high liability limits and a high deductibles risk transfer strategy which are explained below:

• Liability Limits: When you counter any risk, the insurance company transfers the risk for the things that can cause financial hazards. Anyone can be sued for a cause of liability and a higher limit of liability that protects against loss is relatively inexpensive.

• Combined forces: A good and descent insurance practice and risk management is the combination of higher deductibles and high liability limits in other words, it is transferring risk for those losses you could not have afforded to pay and self insuring for those things you can.

• Higher deductibles: This provides a specific benefit to homeowners like immediate and ongoing savings and also insurance for smaller claims that can negate free discounts.

Insurance Policy is about reducing risk and also staying safe whereby and insurance company acts in your behalf based on your premium but I can assure you that if you have the below listed you can reduce your homeowners insurance rate, yea, and also enjoy having an insurance policy thus;

WHAT CAN REDUCE YOUR HOMEOWNERS INSURANCE RATE? 

1 Smoke Detectors

2 Update on electrical wiring in your home

3 Bundle your Homeowners insurance with auto insurance

4 Increase in your deductible that is; pay more of pocket in a claim but save on the premium.

5 Having  a fire extinguisher

6 Having a burglary alarm installed.

CAR INSURANCE

                As applicable to homeowners we also have in car insurance which are:

1 Sort for cheaper insurance benefits: Prices for Auto Insurance varies from companies to others depending on the type of car, background, residence (where you live), and your claim history.

2 Reduce converge for cars that are long gone or old in terms of production, validity period or passage of time.

3 Buy home and car coverage from the same company will be of great advantage for you as the insurance company will look into your needs, compare their benefits and give you the best option based on your premium.

4 Good driver, student and low mileage discounts

Learn more on  homeowners  Insurance here