Additional Homeowners Insurance

By Compuquotes Team on March 27th, 2008
Homeowners Insurance

For most homeowners, basic insurance policies don't provide adequate protection. For these people, insurance companies offer extensive limits of liability, with attached higher premiums.

One of the most damaging natural disasters possible anywhere in the world in as an earthquake. That's the reason earthquake insurance is specifically excluded from all homeowners insurance policies today.

Most people don't think earthquakes are a thing they have to worry about. Recent reportings have indicated significant earthquake risks in areas all over the country.

In the Pacific Northwest evidence suggests that the coasts of Oregon and Washington have been raised above sea level and lowered beneath it by strong earthquake activity over the past thousand years. When it comes to earthquake activity, history seems to repeat itself.

In middle Mississippi one of the worst earthquakes in American history happened near the Mississippi River in the early 19th century. The quakes were so strong that it actually changed the course of the Mississippi River. In these times the area was unpopulated, but times have changed drastically. Major disaster is a very real possibility.

As you can see, not even the south is safe from earthquake activity. On August 31, 1886, Charlestone South Carolina was hit so intensely that its effects caused 60 deaths.

The major issue in many potential Earthquake damage areas is that they don't have earthquake building and safety codes like those enforced in California. Earthquakes that would cause little or no damage in California could cause major destruction in other parts of the nation. Depending on what area you live, Earthquake coverage can be expensive as the homeowners insurance policy itself.

Another natural disaster that causes horrific levels of destruction is flood. The definition of flood is the temporary condition of partial or complete inundation of normally dry areas.

Until 1968 those who suffered flood damage were helpless. That's the year the Federal Government created the National Flood Insurance Program (NFIP). This program made flood insurance available to anyone in a community that agreed to participate in the program.

You may add Federal Crime Insurance to protect you personal valuables. The Federal Crime Insurance program is a federal funded program that offers robbery and burglary coverage. In 1988 $343 billion worth of money and property was stolen by thieves. Crime insurance is sold with maximum coverage on residences set at $10,000, and commercial is $15,000. Burglary is the crime of stealing property by means of illegally entering the premises to commit the crime. Robbery is theft using the means or threat of violence.

Some people have more to lose, therefore more to insure. Generally this is a safe path to take, if you have something you can't afford to lose, make sure you adequately protect it.

The excess liability policy, also referred to as an 'Umrella Policy', is designed to provide wide ranging protection against liability exposure. Umbrella policies usually start around $1 million and up.

Like any liability policy, the consequences of personal injury liability property damage liability, and the costs of defense are al covered under an Umbrella policy. Umbrella coverages don't pay for damage to property owned or controlled by the insured.

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