The Policy:

  The Insurance Policy is the contract between the insurer and the insured, a.k.a the policyholder, that states the claims for which the Insurer is monet

arily liable; meaning for which the Insurer has to pay. The Insured in turn agrees to pay the insurer in premiums for the coverage.

Estimated Cost: Understand Cost
How is Cost Computed in a Homeowner’s Policy?
       When talking about homeowner’s insurance, the word cost is usually used in two contexts: when describing the value of your premium or monthly payments and when defining the value of your deductible.

The Premium:
    This is the term used to define the payments that policy holders are entitled to make on a monthly /semi-yearly basis for active coverage by an Insurance Company. The cost of premiums varies with the level of coverage offered and amongst different insurance companies.

What Determines the Cost of your Premiums?

• The value of the property, as determined by a professional home appraiser.
• The location of the home (a home in a flood-risk area, may yield a higher premium).
• The value of the personal property within the home.
• The cost of your deductible (see the deductible)
• Discounts for security and protective devices such as burglar alarms, smoke detectors, dead-bolt locks, etc.
• The cost of an insurance premium is largely based on statistics and the statistical categories that the profile of the policy holder fits into. The insurance companies use statistical information to assess the likelihood of the occurrence of certain risks and thus the likelihood that they would have to pay the coverage. Typically, the greater the likelihood the higher the premium.

The Deductible:
       The deductible is the amount that must be paid by the insured to the insurance company before the Insurance Company can provide their coverage when a damage claim is made against the policy. For example, If the insured has a homeowner’s policy with a $7,000 deductible and the home is damaged by fire and brimstone, the homeowner must pay $7,000 of the cost of the damages before the Insurance providers can cover the remainder.

Tips to Lower the Cost of Homeowners Coverage
 
1. Raise Your Homeowner's Insurance Deductible
One of the easiest ways to lower the cost of your premium is by raising your deductible. The U.S. Federal Citizen Information Center reports that you may save as much as 25 percent on your premiums by doubling the value of your deductible.

2. Look for a Multipolicy deal.
Consider buying your homeowner's and other types of Insurance policies such as automobile insurance from the same Insurance Company. Some companies offer discounts ranging from 5 to 15% if you buy multiple types of coverage from them. 

3. Shop Around for Homeowner's Insurance
Before you decide to go with one policy or another, it is a wise idea to shop around and get quotes from different insurance companies. Do your homework. Find out if getting a multipolicy deal really is more economical than getting different policies from different companies. Inquire as to the discounts that are offered by different companies.

4. Make Your Home more Insurable
Before you settle with an Insurance policy, inquire as to the changes that can be made in your home to reduce the risk of damage from certain natural disasters or of theft and other risks your home. The presence of security alarms, smoke detectors, fire extinguishers or deadbolt locks may entitle you to certain reductions on your premium. Alternatively, factors such as owning certain types of dogs or owning a swimming pool may mean a higher premium.

5. Understand what Your Homeowner's Insurance Policy Covers
Your home is your biggest investment. Be sure to understand exactly what risks are by your policy so that your home is adequately protected. Read all of the fine print in your policy under the "Conditions and Coverage" section to understand what is included and excluded from the coverage.

6. Improve Your Credit Score
Insurance companies are increasingly using credit information to price insurance policies so it is a good idea to monitor or manage your Credit Score. To attain a healthy credit score avoid having too many open credit accounts and charging close to the limits on your credit cards, and try to pay all of your bills on time. For more information on Credit Scores, check these sites:
http://money.cnn.com/2005/09/21/pf/debt/credit_scores/index.htm          and
http://money.howstuffworks.com/personal-finance/debt-management/credit-score.htm 
 
7. Keep Your Insurance Coverages Up To Date
Once a year, before your homeowner's insurance policy is due to be renewed; review the details of your current policy. Be sure to read all the details, and to call your insurance agent to discuss any changes in your situation that occurred during the year.

Damaged/destroyed: Your Options, types of coverage: what these entail

Types of HOI Policies

Types of policies
Below are the standardized homeowners insurance forms in general use:

HO1 – Basic Form Homeowner Policy
A basic policy form that provides coverage on a home against 11 listed perils. The perils include fire or lightning, windstorm or hail, vandalism or malicious mischief, theft, damage from vehicles and aircraft, explosion riot or civil commotion, glass breakage, smoke, volcanic eruption, and personal liability. Exceptions include floods, earthquakes. This policy also includes a limited form of content’s insurance.

HO2 – Broad Form Homeowner Policy
A more advanced form that provides coverage on a home against 17 listed perils (including all 11 on the HO1). The coverage is usually a "named perils" policy, which lists the events that would be covered.

HO3 – Special Form Homeowner Policy
The typical, most comprehensive form used for single-family homes. The policy provides "all risk" coverage on the home with some perils excluded, such as earthquake and flood. Contents are covered on a named peril basis.

HO4 – Renter's Insurance
The "Tenants" form is for renters. It covers personal property against the same perils as the contents portion of the HO2 or HO3.

HO5 - Premier Homeowner Policy
Covers the same as HO3 plus more. On this policy the contents are covered on an open peril basis, therefore as long as the cause of loss is not specifically excluded in the policy it will be covered.

HO6 – Condominium Policy
The form for condominium owners.

HO8 – Older Houses
The "Modified Coverage" form is for the owner-occupied older home whose replacement cost far exceeds the property's market value.

Classes of coverage
For each policy, there are typically 5 classifications of coverage. These are based on standard Insurance Services Office or American Association of Insurance Services forms.

Section I — Property Coverage

Coverage A – Dwelling
Covers the value of the home itself (not including land). Typically, a coinsurance clause states that as long as the dwelling is insured to 80% of actual value, in the event of a claim, losses will be adjusted at replacement cost. This is in place to provide a buffer against inflation. HO-4 (renter's insurance) typically has no Coverage A, although it provides additional coverage for improvements.

Coverage B – Other Structures
Covers other structures around the property which are not used for business. Typically limited at 10% to 20% of the value of Coverage A.

Coverage C – Personal Property
A general coverage for personal property with certain limitations and exclusions as dictated by the policy.

Coverage D – Loss of Use/Additional Living Expenses
Covers expenses associated with additional living expenses, mainly rental expenses. It covers the loss of rental income on a residence, if part of the residence was rented.

Additional Coverages
Covers a variety of expenses such as debris removal, reasonable repairs, damage to trees and shrubs and other named perils such as credit card / identity theft charges, loss assessment, collapse, landlord's furnishing, and some building additions. The expenses covered vary with the policy.

Common Exclusions
In an open perils policy, specific exclusions will be stated in this section. These generally include earth movement, water damage, power failure, neglect, war, nuclear hazard, and intentional loss. (for HO-3).

Third Party Liability:
    Some Home Insurance Policies include coverage for the expenses for which the policy holder would be liable in the event that a third party were to suffer injury or damage on the policy holder’s property. Third Party Liability can also be extended to include compensation or coverage for damages incurred by any of the policy holder’s employed domestic servants on his property during employment.

Household Contents Insurance:
        This type of coverage is for the contents of the Policyholder’s home.
 Contents are defined as any items which are not attached to the physical structure of the home. This includes furniture, domestic equipment, electrical appliances, furnishing, clothing, food and drink, some valuables and cash up to a certain limit. Contents Insurance is usually sold alongside home insurance but is also offered as an individual policy and may be a considerable option for persons who abide in a rented home.
 The specifications of Contents Insurance that you should understand are:
    
* Firstly, exactly who is covered under your Contents Insurance. Most policies cover the possessions of co-habiting family members but may not cover a friend who lives or is staying with you, unless they are included in your policy.
 
* The conditions of damage for which your contents are insured. Most Content Insurance Policies will cover the possessions of a home in the event of fire, flooding, storm damage and theft but will not cover the accidental damage to possessions, with the exception of accidental damage to fixed glass, for example mirrors or television screens. A policy holder will have to pay higher premiums for cover of content due to accidental damage.

* Most contents insurance policies provide “new for old” cover, meaning that they replace damaged items at the brand new cost of that item; with the exception of certain items, such as clothing or bedding.

* Household insurance policies usually do not cover damage to possessions that are removed from the home. An all risks cover will have to be obtained to insure individual items. The Insurance Company should also be informed as to whether there are any very valuable items in your home as this may affect your policy.
 
 *Also note any restrictions on the policy, for example some Contents Insurance Policies have restrictions on vacating the home for more than a certain period of time.

Important Links

Association of Trinidad & Tobago Insurance Companies.
http://www.attic.org.tt/faqsprop.htm

List of Links to Insurance Companies in T&T. (ATTC Member Companies)
http://www.attic.org.tt/members.htm

Insurance Companies in T&T.
http://www.ostamyy.com/insurance-companies/Trinidad-And-Tobago.htm