Home Insurance—Can Home Insurance Policies Be Transferred?
Home is the only place where in an individual can take a rest together with his family. It is where you may improve and make it safe for the family. We know that the kind of home a person lives in will influence his behavior and personality. But what will you do if calamities like fire, storm, landslides, floods, earthquakes, and the like will flash your home? Aside from your properties, you also have your money and jewelries. Then what kind of protection you will give to your family and possessions to be able to have a peace of mind? You don’t have to problem that if you have sufficient cash and properties to live on. But what about if not? What will you do?
Home insurance is also known as homeowner’s insurance, and it covers protection for your home and other personal possessions inside it when calamity and other unavoidable threats occur. The coverage of home insurance has two types:
Actual Value—is an insurance that pays for the cash value of your property.
Replacement Value—is an insurance that covers the full amount to rebuild your damaged home at current market value.
People who buy homeowners insurance that covers their home and property as well as its contents must know that if you will apply for a home loan, the mortgage companies will advice a person to apply for homeowners insurance. But you must remember that a homeowners insurance is not transferable to another person and a new policy must be written and that should be based upon the value of a new home and property.
Property and home of individuals who buy renters and homeowners insurance are being protected in terms of the individual’s property and home. But for renter’s insurance, the renter’s personal property is the one being secured; it does not cover the building, structure and property. It is a right kind of coverage in ensuring replacements in case of loss of property. Renters and home owners insurance are both transferable.
The homeowner’s insurance policies may have limited coverage. Here are the examples of the items: money, valuable papers and securities, boats, trailers, properties used in business, trailers, silverware, firearms and jewelries including furs, watches and related items. If you would like to buy this in the future, you better talk with your insurance agent for additional coverage. There are other insurers who never include floods, and some also are earthquakes and war. The reason is they will encourage you to buy insurance. That is like they are shooting two birds with just one stone. According to Redentor Ramos of Paramount Insurance, fire, lightning, and third party liability are included in basic coverage. But floods, riots, strikes and among others are already considered additional.
That’s why if you would like to buy any insurance for you and for your family, you must see to it that you’ve understand the policy. Policy and payments must be understood before buying it.