If you own a home
or condominium, you will want to insure your property and household
effects by investing in homeowners insurance. Chances are you
will already have insurance on your home, if you have a mortgage
on the property, since most lenders make insurance a condition
of the loan.
- Deal with licensed insurance agents who work for companies
licensed to sell insurance in Hawaii.
Homeowners insurance offers the most comprehensive coverage available. However,
most homeowners policies will not protect you from a flood loss nor a hurricane
Homeowners insurance pays claims for damage to your home, garage and other
structures; and for loss of furniture and other personal property due to damage
or theft, both at home and away from home; and Homeowners insurance also pays
for additional living expenses if you rent temporary quarters while your house
is being repaired.
Homeowners insurance includes liability for bodily injury and property damage
that you cause to others through negligence, and for accidents happening in
and around your home, as well as away from home, for which you are responsible.
It also pays for any injuries occurring in and around your home to persons
other than you or your family. Medical payments coverage also pays claims for
injuries outside your home that are caused by you, a family member living with
you, or by your pet.
Homeowners policies generally provide limited coverage for certain money, gold,
jewelry, and stamp and coin collections.
When deciding how much insurance coverage to buy, consider the cost and how
much you can afford. Assess the cost of replacing your house if it is totally
destroyed, and determine what the present value is of your furniture and personal
belongings. Do you want to be fully reimbursed when a loss occurs? Or, for
a lower premium would you be willing to accept partial payment for the loss
or damage? Remember that buying a higher deductible is another way of decreasing
your insurance premium.
Replacement cost coverage pays for the cost of rebuilding your house if it
is destroyed by fire or other specified disasters. Replacement cost coverage
will also pay for personal belongings, but usually at an additional premium.
Your homeowners policy can also reimburse you on the basis of "actual
cash value" only, instead of replacement cost. Actual cash value covers
the cost of repairing the damaged property only to its condition just before
the loss, or replacing damaged property with a substantially similar item.
For first-time home purchasers, here are some things to keep in mind when buying
- Have your agent shop around to get the best coverage at the best price. Ask
your agent about the companies you're interested in how they settle their
claims. Check with friends and acquaintances to verify the companies' reliability
- Keep a complete list of your important personal belongings and their original
cost. This list will help you determine the total value of your personal
effects and identify what has been lost in case of fire or theft.
- Read your homeowners policy carefully. Look for any exceptions, restrictions
or limitations that will affect your coverage. You may be required to purchase
a separate flood or hurricane policy. We can help you decide on the
best coverage at the best price for your individual situation and needs.
We can help you decide on the best coverage at the best price
for your individual situation and needs.