October 22, 2010

How Homeowners Insurance And Auto Insurance Policies Interact With Each Other

Auto insurance covers a variety of perils that can occur to an individual's vehicle, as well as a vehicle belonging to a third party. It also covers injuries to the driver, passengers, pedestrians, and other drivers. Of course, the coverage depends on the type on insurance policy purchased. Auto insurance coverage can include physical coverage to the vehicle such as auto theft, fire, vandalism, and collision. It can also include extra medical coverage that will offset the high cost of medical bills, funeral expenses, and income loss.

A home is probably the largest investment that anyone will make in their entire life. It only makes sense that you will also want to purchase a homeowner's insurance policy to cover that investment. Home insurance covers a variety of perils including theft or attempted theft, vandalism, fire, impact by aircraft or land vehicle, and riot. Not only is the structure itself covered for these perils, but all of the personal property contained inside is covered as well. This means that if your home is destroyed by a fire, then the couch, television, and bedroom set that were also destroyed will be replaced, within the stated limits of the policy.

When a person purchases both a home and insurance policy, they benefit in several ways. If both policies are purchased through the same insurance company, then they will receive a multi-product discount on both policies. This is often a savings of 5% to 10% or even more on each yearly premium. Many people transport personal property from one place to another at times and there is a possibility of it being damaged or stolen. For example, what happens if a person takes their laptop into their vehicle and they are a victim of auto theft? There may be damage to the vehicle from the break in, which can be claimed through a car insurance policy. But, what about the computer? The theft of the computer can be claimed through the homeowner's policy, even though it wasn't in the home at the time of the theft. A home insurance policy covers personal property that is damaged or stolen whether on or off the premises.

When inquiring about insurance, always ask about bundling different insurance products. It is to an individual's benefit to have auto insurance coverage and homeowner's insurance at the same place. Not only can you save money, but you will have peace of mind no matter where you are. Always make sure you inquire about the different insurance coverage that is available for both your home and vehicle. Your agent will help you to find the product that is most suitable for you and your budget.