Home Insurance

Your home is one of your most valuable assets. In turn, your homeowners insurance policy is one of the most important types of insurance you own. As part of a solid financial plan, homeowners insurance helps you manage the risks associated with home ownership: loss or damage to your property and personal injury liability.

Save Money on Your Homeowners Policy

• Shop for competitive rates

• Qualify for the combination policy discounts: homeowners and automobile

• Carry proper coverage

• Adjust deductibles — do not be over-insured

What Types of Coverage Are Available?

A homeowners insurance policy offers various types of coverage. These include:

• Dwelling: This is the residence or premise shown on the policy declaration page. This coverage is a very important part of your policy. It covers the structures that are connected to the dwelling or under construction, and that are intended for your own use. Coverage may also include detached structures, such as garages, tool sheds, fences, patios and swimming pools.

• Contents: This coverage is part of the standard policy that insures your personal property; it is usually set as a percentage of your dwelling. It covers appliances, furniture, tools, clothing, etc. Make sure that your coverage is sufficient to cover a total loss. The policy can pay you the actual cash value or depreciated value of an item, or you can modify the coverage to pay the replacement cost.

• Personal Articles Rider: This insures your personal property at higher values than the coverage limits under the policy for such items as furs, jewelry, collectibles, etc.

In the event you need to submit a claim, you are required to submit proof of loss to the insurance company, which should include the approximate condition and value of the items claimed. Therefore, you should maintain an inventory list or a video of your insured items and keep it in a safe place outside your home.

If using a video, include a picture of the current newspaper in the beginning of the tape with the date clearly visible, as well as an audio declaration stating that the items in the video do indeed belong to you.

What Policy Terms Should You Know?

Loss of use: This coverage provides compensation when your dwelling is uninhabitable or under repair due to loss. It can also pay you for the loss of rental income if a portion of your home is rented.

Liability: The liability coverage in your homeowners policy will protect you from lawsuits due to bodily damage or property damage caused by you or a family member. It will also pay for medical expenses related to bodily injuries, and actual physical damage to others' properties. You set the limit, so make sure that you set it at a level that will protect your net worth.

Replacement Cost: This insures the actual cost to replace your property. It does not deduct for depreciation. Damages for a claim would be the amount needed to replace the property using new materials.

Deductible: This is the out-of-pocket amount a policyholder agrees to pay per claim toward the total loss of a property.

Peril: An event that causes loss: i.e. fire, lightning, or hail.

Loss: Personal injury or property damage to you or someone else that is caused by a covered peril or your negligence.

How Can You Fully Protect Your Home?

So that you are fully protected, make sure that your replacement cost is current. If your home is destroyed, for instance, by fire, replacement cost will pay for the reconstruction of your home. Another option you should consider is the guaranteed replacement cost of your dwelling. It will pay the actual cost to replace your home rather than its fair market value.

Also, so that in the event of a loss you receive proper reimbursement, keep records of all your insured items.

As with all types of insurance, you must balance the benefit of coverage with its cost. Only insure what is necessary. A financial advisor can help you develop an insurance plan that suits your needs.

Important Notice about Purchasing a VALIC Annuity From Us

To help the government fight the funding of terrorism and money-laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who purchases certain annuity products. What this means for you: When you purchase certain annuity products from us, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may ask to see your driver's license or other identifying documents.

Annuities and insurance products are offered by The Variable Annuity Life Insurance Company (VALIC), AIG Annuity Insurance Company, AIG-affiliated insurance companies or other approved companies. Each underwriting company is financially responsible for its own insurance products.

Securities and investment advisory services are offered by AIG Retirement Advisors, Inc., member FINRA, SIPC and an SEC-registered investment advisor.

AIG Retirement is the marketing name for the group of companies comprising AIG Retirement Advisors, Inc.; AIG Retirement Services Company; and The Variable Annuity Life Insurance Company (VALIC); each of which is a subsidiary of American International Group, Inc.

This information is general in nature and may be subject to change. Neither VALIC nor its financial advisors or other representatives give legal or tax advice. Applicable laws and regulations are complex and subject to change. For legal or tax advice concerning your situation, consult your attorney or professional tax advisor.