Page 67 - Book5E
P. 67
CHAPTER 9
Homeowners Insurance
As you probably know, homeowners insurance provides financial protection against disasters and insures both the home itself and the belongings within it. Homeowners insurance is a package policy, which means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.
Damage caused by most disasters is covered but there are exceptions, such as damage caused by floods, earthquakes, and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowner’s responsibility.
Homeowners insurance is very important to your short-term and long-term financial well-being, and, according to the Insurance Information Institute (www.iii.org), the price you pay for your insurance can vary by hundreds of dollars, depending on the insurance company you buy your policy from.
In your efforts to establish and live by a budget, here are some valuable tips to consider when buying homeowners insurance, used with permission from the Insurance Information Institute:
1 . Shop Around .
It will take some time, but could save you a good sum of money. Ask your friends, check the Yellow Pages, or contact your state insurance department (www.consumeraction.gov/insurance). The
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