An expensive home requires being insured using high value home insurance. This is because the standard homeowner’s policy is not enough to cover the home due to its coverage limits. When insuring your home, it is important to ensure that the coverage you are taking will be enough to cater for the replacement cost of your home and personal possessions in case a peril occurs. Therefore, if you calculate your home’s replacement cost and find that it is above what the standard policy is offering as the limit, it is best to use the high value policy.

What the high value home insurance covers 

Most companies insuring high value homes specify the rebuilding cost a home should have to qualify for this type of policy. A buildings cover is provided and it includes an amount for alternative accommodation in case an insured peril occurs and the home becomes unusable. Because an expensive home is a sign of expensive contents, even their coverage is higher than what is provided by standard home insurance. Apart from your expensive home, the policy also covers expensive items such as antiques, fine art and jewelry. The coverage for these items should be enough to replace them in case a peril takes place.

How to purchase the insurance

You should do research to find a policy that has the best coverage the same way you would if you were buying any other insurance. Review quotes from different insurance providers to find out which one is giving the best coverage and at a reasonable price. You may use online comparison websites to request for quotes from different insurance companies. This way, you can find different policies to compare. Some of the areas you should be keen on are to find out what the policy covers and what limits it has on claims. The main reason you are taking high value home insurance is so that you can get coverage that is enough to cover the replacement cost of your home. You should therefore choose a policy whose limits are a reflection of the realistic costs that would be incurred to repair or replace your home and valuables. In case you have a problem calculating your home’s replacement cost, you can request an estimate from a realtor or a contractor. An inflation protection that is built- in on the policy would help to curb devaluation of currency. If you are in earthquakes or flood prone areas, you may need to take additional insurance for them. You should therefore analyze the quotes and see what is covered and the limits provided. Quality of service provided by the insurance company is also important. Ensure that you can get timely response on your enquiries a sign that you will also get good response when making a claim. You should check if the insurer can handle high volume claims without payment delays.

Homeowners should get Denver home insurance for their homes in the area. The insurance can help the homeowners to protect their homes from various perils that can result to loss such as theft, fire and vandalism. Moreover, with the recent cases of fire, it would be unwise for someone to go without homeowners insurance. Most homeowners take HO 3 policy for their homes. This covers the structures and the contents in the home against perils except for flooding and earthquakes, which require additional coverage. This policy also has coverage for liability in case somebody is injured or another person’s property is damaged because of your negligence. The most common policy covers a dwelling replacement cost of $200,000, contents replacement of $160,000, personal liability of $100,000, medical expenses of $1,000 and $500 deductible. You should however note that policies from different insurers provide varying coverage limits with different exclusions and inclusions. You should therefore review your policy carefully to determine if it meets your needs.
Denver is said to have the highest premiums, with other cities in Colorado having lower premiums.

Causes of high premiums in Denver home insurance

Denver is reported to have high rates of insurance premiums that are above other cities in the state and above the country’s average. This is due to the high rates of crime in the area. A high crime neighborhood increases how the homeowners insurance cost due to the high risk of residents making a claim due to theft. Despite this, also other factors contribute to the cost of Denver home insurance premiums. Some of the factors include how old the house is, where the house is located and the distance from a fire station or hydrant and how the house is constructed. Discounts, coverage that you buy, deductible, your claims and credit history also determine the how much premiums you pay for the house.

What to watch out for when insuring your home

The essence of taking homeowners insurance is to cover the home in case a peril occurs. This prevents you from suffering losses in repair and replacement. It is not a legal requirement to insure the home, but it is important. If the fires that took place in Denver are anything to go by, then it is better to have the home insured. One mistake homeowners make is to insure the home at a lesser value than the replacement cost. In the event that a peril occurs, the homeowners find themselves unable to replace their property to their initial position. This is because the insurance company compensates for the value that had been insured. For instance, when there were the fires in Denver, most homeowners replacement cost limit was way below what was required to replace the property. The cost of construction materials had gone up and new building codes had come up. To curb such kind of an event, homeowners are advised to keep on reviewing their replacement limits to keep up with the increasing costs of construction.

It is important to take your Dallas home insurance in order to protect your home against perils such as fire, theft and vandalism. While in Dallas, it is also important to insure against windstorm, considering that the area is prone to high winds. Make sure that you do your research on the insuring companies and compare their prices to get the best. Note that the cheapest premium is not the best neither is the most expensive. A good policy should have a favorable price while providing the required coverage. It is also important that you purchase your Dallas home insurance from a licensed agent or an insurance company. Find out about the reputation of the insuring company and the complaints that it may have before you do business with it.

Insurance policies in Dallas

Various types of insurance policies are available in Dallas and they include:

HO-A - This policy covers a home and its contents on the named perils for cash value. It is the most limited type of coverage.
HO-A Amended – it has more coverage than HO-A and it can also base coverage for buildings on replacement cost. It also covers the building for sudden accidental water damage.
HO-B – this provides coverage for the building on ‘all risk’ and coverage for the contents on ‘named perils’. The policy is considered the best for homeowners in Dallas. Contents are covered at 10 percent of coverage on the building though the limit can be increased by increasing the premium.
HO-C- this is an all risk policy for contents and building with coverage being on replacement cost. It is a comprehensive coverage though it is difficult to find a home in Dallas with this policy.
There are alternative policies that individual insurers develop though they need the approval of Texas Department of insurance. These policies may have broad or limited coverage. If you would like to use such coverage, consider its limitations and enhancements and see if they are suitable for you.

Consumer Bill of rights in Texas

The insurers in Dallas must include the Texas Consumer Bill of Rights. This is an explanation of the legal rights of the homeowners under the insurance policy. Some of the rights included are on:
•    Insurance that is Lender required
If a lender requires a property to be insured, the property cannot be insured for more than its replacement value. Most homes in Dallas have a market value that is higher than their replacement value.
•    Credit information
A homeowner cannot be denied insurance coverage based strictly on credit report information.
•    Prior Mold Claims or Water Damage
A home cannot fail to be insured based on a prior water damage or mold, provided the damage had been repaired, inspected and certified.
•    Dallas home insurance mold claims special note
Home insurance companies in Texas should offer the policyholders mold remediation. Its limit can be in dollar amounts or policy percentage.
•    Windstorm coverage
High-risk properties in Texas can get hail and wind insurance from Texas Windstorm Insurance Association. Properties in other locations such as Dallas should have windstorm coverage included in their home insurance policy.n0612

Some of the factors that affect the cost of homeowners insurance may be beyond your control. For instance, the location of the property plays an important role in the determining of insurance premiums with areas that have high crime levels attracting higher premiums. Despite that, it is important to insure your home against perils such as theft, fire and other disasters so that you do not suffer losses in case they occur. In as much as there are factors determining the insurance rates which are beyond your control, there are things you can do to reduce the cost of homeowners insurance. This will ensure that you pay lower premiums. Some of the steps you can take include:

Discounts

Discounts help to reduce your cost of homeowners insurance. There are various types of discounts such as new customer discounts, loyalty discounts for being with one insurer for long and claims free discounts among others. You can enquire from the insurance agent or company if you are qualified for any of the discounts.

Raising the deductible

Deductible is the amount of money that accrues to you in case an insured peril takes place. The rest of the money is paid by the insurance company to cover for the repair or replacement. Having a higher deductible results to lower premiums because the higher the deductible, the higher the chance that you will not make a claim. Before you opt for it, make sure that you can afford paying large amount of money in the event a peril occurs.

Policy bundling

Having all your policies with one insurer can bring your cost of home owners insurance down. Insurance companies reward those who take multiple policies with them by lowering their premiums. You could have your homeowners, life and automobile insurance with one company.

Upgrade the systems in the house

Upgrading your home systems that include plumbing, electrical, roofing and heating can lower the cost of home owners insurance. If your house has systems that are less than ten years, it is considered safer than a house with outdated systems. This translates to reduction of premiums. If you are in earthquake prone areas, you can receive discounts on your premiums if you install modern foundation in place of post and pier foundation on wood frame houses. In a hurricane prone area, you can benefit from lower premiums if you install storm windows and metal roofing that is upgraded.

Use security systems

If you install security systems such as a modern burglar system, carbon dioxide and smoke detectors, you can be eligible for a discount on your policy. It is however important to ask an insurance agent about the security improvements that qualify for discounts. Also, know the amount of discount that you will receive.

Have a good credit score

A good credit score can result to lower premiums. If your score is bad, improve it by paying debt and negotiating others with creditors.

Condos are different from homes and that is why you need condo homeowners insurance if you own one. Condos are units of residence in a large housing complex and the only ownership you have is for your unit. This aspect affects the insuring because the condominium association only insures the building, property that is commonly owned and the associations liability. Because there are different rules for every condominium complex, it is important to inquire what has been insured. This means that your personal property is not insured and you do not have a liability cover in case someone injures themselves in your unit. Therefore, you are responsible for insuring your unit. However, before you take condo home insurance, you should first find out which areas of the complex are insured through the association. This will help you to know the kind of coverage to take for your unit.

There are various policies that the association can choose from, such as a policy insuring the main building in addition to common areas, a policy insuring the building and items that are in your unit except personal property or a policy insuring the building including the unit and fixtures in it. The condo homeowners insurance you take should therefore be for filling the areas left out by the association’s policy. For instance, you should not insure your fixtures if they have already been insured. If the association policy only covers the exterior walls and the common areas, then you should insure interior walls, personal property and the liability.

What is covered by a condo policy?

A condo home insurance covers loss from smoke, fire or lightning, vandalism, theft, windstorm or discharge of water by accident. Ensure that the structural items that are your responsibility and the contents have been insured. Get the value of your contents such as electronics, rugs, furnishings and furniture and also the value of the structural items that you should insure. Determine what they would cost if you were to replace them. It is better to take an insurance cover based on replacement cost rather than the cash value. Under replacement cost, the insurer pays for items based on how much they would cost in the market. In cash value, the insurer only covers the value of the item when depreciation has been subtracted. In case a peril occurs and you are required to replace items, you would find that a policy in cash value basis might not be enough to recover all your items. You may also insure special items, for example jewelry, fur, artwork and special collections.

Should you insure against wind and flood?

Because flood and wind affect the building structure, these should be left to the association to insure against. However, you may take personal flood cover to protect your contents and even your interior structure. You should note that flood coverage is different from water backup coverage that deals with water getting into the home through drains and sewers.