While there are variations from plan
to plan, most Rhode Island home insurance policies cover major disasters that
can happen to a home. This includes fire, lighting removing the central air
conditioner, bursting pipes and causing water damage, or a tree dropping a
branch and causing roof damage. Items like these are covered by a general
insurance policy, but damage that occurs to your home as a result of a flood or
earthquake is not covered. In order to be insured against flood and earthquake
damage, special coverage must be purchased in addition to a regular policy.
Also, depending on the area a house
is in, many policies do not cover wind damage to a house. Many states have
certain areas labeled as `` high risk '' for damage due to high occurrences of
tornadoes, severe thunderstorms and hurricanes. If your home is located in one
of these areas, your general insurance policy will not pay for damage caused by
the forces of nature. Unfortunately, after Hurricane Katrina, the areas
considered by insurance companies to be “high risk” expanded considerably. Not
only have the southern states bordering the Atlantic and the Gulf been affected
by declining policies and very high insurance premiums, but the central Atlantic
states and New England have also been negatively affected.
Although many home insurance policies
in Rhode Island were dropped by insurance companies after Hurricane Katrina,
homeowners are still able to find insurance from other carriers, but at the
cost of premiums and higher deductibles. However, the number of people in Rhode
Island who must be covered by public insurance pools has remained relatively
small. A public insurance pool is an insurer of last resort created by the
state when the private market has abandoned homeowners' coverage or has not
provided initial coverage. It is jointly managed by private insurers who sell
home insurance in the state of Rhode Island.
Under this plan, monetary gains and
losses are distributed among participating insurers. This insurance pool has
been designed to provide affordable insurance for those who cannot get it
elsewhere. However, in the state of Massachusetts where 40% of Cape Town
homeowners must use their public insurance pool, this system is already asking
to be authorized to increase their rates by 25%. Hopefully Rhode Island won't
follow suit.
OPTIONS IN A RHODE ISLAND OWNER INSURANCE POLICY
REPLACEMENT COST OR ACTUAL CASH VALUE
Home insurance companies offer
policies based on the cost of replacing a home or its actual cash value. Most
insurers (and mortgage companies) require the home to be insured for at least
80% of the replacement cost.
Replacement cost - Under this plan,
if damage occurs, the insurance company will pay the amount needed to repair
the damage or replace an item. If there is a fire in your basement and your
furnace needs to be replaced, insurance will pay to have a new furnace
installed, even if the destroyed furnace was old enough. The depreciation of
the value of the article would not be taken into account.
Actual cash value - This plan works
very differently from a replacement cost plan. As part of this plan, if there
is a fire in your basement and the furnace needs to be replaced, a monetary
value will be assigned to this item. Age and condition would be taken into
consideration and if your furnace was ten years old you would receive the cash
value of a ten year old furnace.
Most insurance companies cover your
personal effects (the contents of your home) based on actual cash value.
However, if you are willing to pay a small increase in your premiums, an option
is usually available with many insurance companies that would allow you to
insure your property for their full replacement costs. Even within these two
parameters, there are certain limits. Jewelry, valuable antiques, expensive
plasma TVs, guns, computers, and cash may need to be insured with additional
coverage.
If you are on a small boat, it would
be to your advantage to check, as some insurance companies offer insurance for
small boats as part of their home insurance.
ADDITIONAL LIVING EXPENSES
If the damage is so severe to your
home that you can't live in it during repairs, most insurance plans offer
coverage for a limited stay at a motel, restaurants, and even storage costs.
PERSONAL RESPONSIBILITY
Under Personal Liability, you and
your family members are protected from lawsuits and claims resulting from your
negligence. (The kids left the skateboard on the front door and someone tripped
over it and got injured.) It also protects against claims due to property
damage, although this does not include vehicles. .
MEDICAL PAYMENTS
This covers all injuries that might
happen to someone on your property, regardless of who is at fault. However, it
does not apply to you or any member of your family living in the house. There
are also exceptions that apply to activities surrounding a home business.
FACTORS TO CONSIDER
RI home insurance coverage is
designed to protect you against loss due to damage or destruction to your home.
Before purchasing home insurance, it's important to know what it would cost you
to rebuild your home so that you know how much will adequately insure your
home. What you originally paid for your home is not a factor in the equation.
However, keep in mind that even though the value of the land your home is built
on was included in what you paid for your home, that value is not part of the
value associated with your home insurance policy. .
COMPARE RHODE ISLAND OWNER INSURANCE RATES
Make sure you shop around before you
buy. Compare RI home insurance quotes from at least 5 different companies
before making a purchase decision.
Fermenters immobilizers residentially
à Rhode Island
Un contrat dachas
and sale is a contract to buy and
sell real estate. The agreement should contain the terms and conditions of the
agreement (i.e. buyer, seller and ownership information, sale price, closing
date, filing information, mortgage contingencies, property inspection, etc.)
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