Homeowners insurance can seem complicated at first, but armed with a little information, you can understand and appreciate its’ value.  As with any insurance, you purchase it with the hopes that you’ll never need to cash in on it!

Most mortgage lenders require homeowners insurance; and many landlords are requiring their tenants to have some form of insurance, as well.

What Homeowners Insurance Policies Provide

A standard homeowners insurance policy will typically provide coverage for costs that are related to the following:

Interior & Exterior Damages:  if the outside or inside of your home is damaged by fire, lightening, hurricanes or vandalism (as well as other covered disasters) your insurance provider will compensate you enough to repair the house or even completely rebuild it if necessary. Damages caused by floods, earthquakes or from poorly maintaining your home is not usually covered.  These instances may be covered if you purchase additional riders or coverage options.

Damage or complete loss to personal belongings: Things like clothing, appliances and furniture, as well as other contents of your home are covered by homeowners insurance if they’re destroyed in an insured disaster.  Most insurance companies will cover you for 50-70% of the amount of insurance you have on the structure of your home.  This means if you insure the home for $200,000 you would have around $140,000 in insurance coverage for the contents of your home.   Make a list of everything in your home and their approximate values to see if you have enough homeowners insurance coverage.

Personal liability coverage for damage or injuries: If you or a family  member (including your pets!)  causes injury to another person, the insurance will cover those medical costs.  This coverage also provides compensation if someone in your family damages someone elses belongings.
 

Hotel or house rental while repairs are made:  if your house is destroyed, you will find this coverage to be your favorite coverage!  While the home is uninhabitable and being repaired or rebuilt, your homeowners coverage would reimburse you for the amount you pay in house rent or hotels, meals at a restaurant and any other incidental costs incurred due to being unable to stay in your own home.  Policies due impose strict daily limits as well as total limits for the amount of money they’ll provide for this coverage. 

How Much Does Homeowners Insurance Cost?

In 2005, the average homeowners insurance coverage in the United States was around $760, annually.  Premiums will vary based on how much coverage you choose to purchase, where you live, and the amount of liability protection you want to have.

Before choosing an insurance company, as with any insurance, you should do some comparison shopping and decide which company can offer you the best prices for the amount of coverage you wish to have.

People over the age of 65 make up only about 14% of the U.S. Population; but they consume more than a third of the $266 billion or more spent on prescription drugs in a year. Younger retirees, those between the ages of 65 and 69, take about 14 prescriptions per year; while those who are over the age of 80 are averaging 18 prescriptions annually.

Unfortunately, there are not many people who are lucky enough to be retiring from an employer that offers health coverage during the retirement years. Financial planners work with people to determine how much money they’ll need to replace their income during their retirement years – but very few focus on how much money you’ll need to save for your aging medical needs. With drug prices rising annually, and with some of the more commonly prescribed drugs for the older population costing a steep $1,500 per year – it’s easy to see that your medical needs should be taken into consideration in determining your retirement money needs.

Here are 5 ways to reduce your prescription drug costs during retirement:

1.  Buy Generic. You can save up to 80% off the brand name drug prices when you buy the generic version. When a doctor prescribes a medication, always ask whether there is a generic available and request that he or she write your prescription for that one, instead. Often, doctors remember the constant sales pitches they receive from the name brand companies and simply forget there are generics available – so don’t be afraid to ask.

2.  Comparison Shop. As with any other purchases you make, you can often save money simply by comparing the prices at several retailers before making your purchase. Try checking prices at Costco and/or Wal-mart for prescription drugs- they are almost always less expensive than nonchain pharmacies. Some neighborhoods offer a discount pharmacy that offers lower priced medication and caters to people without health insurance. If your own neighborhood does not offer such a service – check for mail-order discount pharmacies.

3.  Split Pills. Higher dosages of many medications cost the same as buying a smaller dosage. Whenever possible, ask the doctor to prescribe a higher dosage strength than you need, and then you can cut the pills in half to get the strength you actually are prescribed. There are pill splitters available for sale at most drug stores that ensure you split the pill evenly and get the prescribed dosage. You’ll get twice as many dosages for the same price.

4.  Shop Online. Drugstore.com is a well known bargain provider of prescription drugs. Just be sure that wherever you buy from has got a solid reputation and that the drugs are reviewed by physicians.

5.  Discount Programs. There are a number of discount prescription health plans that you can pay a membership fee to receive discounts on medication. Medco Health Solutions is one fo the most well-known and respected discounted programs. Visit www.medcorxdiscountprogram.com to get details and see whether or not you can save on your prescription drugs with this discount program.