Welcome to Ameritrade Plus University
  Home and auto insurance
  Introduction
 
The details:
 

Top things to know
 

Why insurance costs so much
 

Value your home properly
 

Choosing homeowners coverage
 

Picking an insurer
 

Maximizing your savings
 

A few words about claims
 
Glossary
 
Take the test
 
Lessons:
1
  Setting priorities
2
  Making a budget
3
  Basics of banking
4
  Basics of investing
5
  Investing in stocks
6
  Investing in bonds
7
  Buying a home
8
  Investing in mutual funds
9
  Controlling debt
10
  Employee stock options
11
  Saving for college
12
  Kids and money
13
  Planning for retirement
14
  Investing in IPOs
15
  Asset allocation
16
  Hiring financial help
17
  Health insurance
18
  Buying a car
19
  Taxes
20
  Home insurance
21
  Life insurance
22
  Futures and options
23
  Family law
24
  Estate planning
25
  Auto insurance

|> About Money 101

investing 101

  Top things to know: home insurance
Here is an overview of the most important points of this lesson. For more discussion, click any section of "The details". Or, click "Take the test" to jump directly to the quiz.

1. You're a statistic. To an insurer, you're not a person; you're a set of risks. An insurer bases its premium (or its decision to insure you at all) on your "risk factors," including your occupation, who you are, what you own, and how you live.

2. Know your home's value. Before you choose a policy, it is essential to establish your home's replacement cost. A local builder can provide the best estimate.

3. Insurers differ. As with anything else you buy, what seems to be same product can have different prices from different companies. You can save money by comparison shopping.

4. Don't just look at price. A low price is no bargain if an insurer takes forever to service your claim. Research the insurer's record for claims service, as well as its financial stability.

5. Go beyond the basics. A basic homeowners policy may not promise to entirely replace your home.

6. Demand discounts. Insurers provide discounts to reward behavior that reduces risk. However, Americans waste some $300 billion a year because they forget to ask for them!

7. At claims time, your insurer isn't necessarily your friend. Your idea of fair compensation may not match that of your insurer. Your insurer's job is to restore you financially. Your job is to prove your losses so you get what you need.

8. Prepare before you have to file a claim. Keep your policy updated, and reread it before you file a claim, so there are no surprises.

Why insurance costs so much

 
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