Homeowners Insurance Statistics guide

Homeowners insurance is the ideal way to protect one of your lifetime investments, your house and also the pricey things kept in it. By purchasing this policy you insure your house and possessions against several threats such as natural disasters, theft etc.

While purchasing a homeowners insurance the first issue of extreme concern is the amount of coverage you want. A recent study by the Insurance Information Institute revealed that two thirds of all homes in America were underinsured by an average of 27%. It is therefore important to choose a right amount of coverage.

If you find it difficult to calculate the extent of coverage you want, there are several ways to do it. For example, if you want coverage for reconstruction of your house in times square of your home by local building costs per square foot. Knowing the cost of rebuilding your house, also known as residential coverage, you can take through local insurance or real estate agent.

For example, in Nevada, with an average 1,268 square feet home, built in 1997, has a current dwelling coverage of $ 81,000. But if homeowners feel they are underinsured by 27% and increased their coverage to $ 110,000, the monthly payment will increase by $ 7.50 per month.

In most cases homeowners insurance also compensates for personal liability, you must also remember how much coverage you need for certain legal expenses, medical expenses or damage to all members of the house.

While a standard homeowners policy comes with liability coverage worth $ 100,000, insurance professionals usually advise to cover about $ 300,000 to $ 500,000 in liability coverage. To have this extra amount added to your standard homeowners policy, purchasing a license is a good idea.

You can go for personal umbrella coverage in the event worthy of your assets is more than $ 300,000 to $ 500,000. The umbrella coverage is extremely useful when you have finished your homeowners or auto coverage. For example, if your colleague is injured at your house and revengefully brings you to $ 500,000, your homeowners insurance will cover the $ 300,000 and get exhausted, but the amount left will be easily covered by the umbrella coverage.

For the insurance of your household stuff there are three ways. First is the actual cash value, where the political will pay to replace your personal belongings with the method based on replacement cost of the property minus depreciation?

Second is the replacement cost approach, where you receive that amount for the things you lost in any of the covered risks. Even in this way requires you to pay an extra premium, but it may prove extremely beneficial in the long run.

The third option is the guaranteed replacement cost. This coverage means that there is no maximum payout is used to cover your insured personal property. You must pay an extra premium but on the same hand raise your deductible to make the coverage somewhat cost effective. Similarly, the structure of our house is also to be insured in these three ways, but with a little variation.

According to current facts and statistics presented by the National Association of Insurance Commissioners in 2002 the average cost of homeowners insurance rose by 12% from $ 593 to $ 668 in 2003. Costs vary from state. For example, experienced in 2003 Texas has the highest average expenditure of $ 1,328 in Oregon was $ 461 Delaware $ 442 and $ 462 Maine.