THURSDAY, OCTOBER 26, 2023
Home and auto insurance are two essential forms of financial protection that help safeguard your assets and provide peace of mind in the face of unexpected events. Understanding how these insurance policies work is crucial for making informed decisions about protecting your home and automobile.
How Can Bundling Home and Auto Insurance Policies Save Me Money?
Bundling home and auto insurance involves purchasing both types of coverage from the same insurance provider. This approach offers several benefits, including cost savings through multipolicy discounts, increased convenience by dealing with a single insurer for both policies, potential enhancements in coverage, a streamlined claims process and improved customer service. Bundling also simplifies policy renewals and can lead to loyalty benefits over time.
What Types of Coverage Are Typically Included in Combined Home and Auto Policies?
Combined home and auto insurance policies, often called bundled or multipolicy insurance, are designed to provide convenience and potential cost savings by combining your home and auto coverage. Besides being bundled together, they otherwise offer the same protections as you would find in a standalone home or auto policy.
What Does Homeowners Insurance Cover?
The following are some common areas that homeowners insurance policies may cover:
- Dwelling coverage may help cover the structure of your home itself, including the walls, roof, foundation and other built-in structures, in case of damage or destruction caused by covered perils.
- Other structures coverage extends to structures on your property that are not attached to your home, such as a shed or fence.
- Personal property coverage may help cover your personal belongings, including furniture, appliances, clothing and electronics.
- Liability coverage may help provide protection if someone is injured on your property or if you cause damage to someone else’s property. It may cover third-party medical expenses and your legal fees in a lawsuit up to the policy’s limit.
- Additional living expenses may help with temporary accommodation, meals and other living expenses if your home becomes uninhabitable due to covered damage.
What Does Auto Insurance Cover?
An auto insurance policy may offer several different kinds of coverage, such as the following:
- Bodily injury liability coverage applies to injuries the covered driver causes to a third party in an auto accident.
- Medical payments coverage may help pay for treating injuries to the insured driver and passengers after an accident, regardless of fault.
- Property damage liability may help pay for damage caused to a third party’s property in an accident.
- Collision coverage may help pay for damage to the covered driver’s car resulting from a collision with another car or object.
- Comprehensive coverage may help reimburse losses due to a covered event that isn’t a collision. Depending on the policy, this might include fire, falling objects, explosions, earthquakes, windstorms, hail, flood, vandalism, and damage from wildlife.
- Uninsured/underinsured motorist coverage may help cover expenses related to injuries and property damage when hit by an uninsured, underinsured or hit-and-run driver.
What Factors Affect the Cost of Home and Auto Insurance Policies?
Various factors can influence the cost of combined home and auto insurance policies. Insurance companies consider the following factors when determining the premium for your policy:
- Geographic location
- Type and value of home
- Home security
- Driving record
- Type of vehicle(s)
- Claims History
Contact a representative at RCU Insurance Services to learn more about the benefits of combining your home and auto policies.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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