Homeowners’ Insurance Overview
Without adequate insurance protection, it just takes one accident to make the dream of home ownership a nightmare. A home is often the largest purchase an individual will ever make. Why not protect it properly with the right insurance coverage?
What is this coverage?
Homeowners insurance is designed specifically to protect one’s home and the possessions within it from any covered event or peril that causes loss. Usually this includes fire, theft, accidents, and even vandalism. Arguably the most important aspect of this kind of insurance is its built-in protection for your financial well-being should anyone be injured on your property and subsequently file a lawsuit against you.
Home coverage is a kind of property and casualty insurance that has two main aspects. The main part of such protection is the safeguarding of the home and the contents within against covered natural disasters, like wind, fire or hail. Another aspect is the personal liability coverage that protects the policyholder and his or her loved ones from things such as legal action from visitors being hurt on the property.
If you own a home, you will need home insurance and will also be likely required to obtain it by the financial institution that lent you the money to purchase it. If you try to avoid purchasing a policy, then your lending institution will put one in effect for you and then add it to your mortgage payments. Banks will protect their investments too.
Your policy coverage will normally extend to some natural disasters, but not all. Almost standard is the exception of earthquakes, floods, and hurricanes from homeowners’ policies and one will need to obtain separate policies for these various perils. Ask your insurance professional about what coverage for natural disasters is best for your situation and for the region in which you live.
How much coverage is needed?
The kinds of home insurance coverage are available at varying levels. Usually your state will have set minimums for what your insurance provider should offer in a policy. Of course, your bank will likely have its own minimum requirements for how much coverage you must buy. In general, the more expensive your home and the belongings within it, the more you will spend on coverage premiums.
Riders (or supplemental coverage) are helpful for your extra-valuable items, items such as priceless jewelry, a coin collection and antiques. When purchasing a home policy, your agent should ask as to what, if any, unique or valuable items you might have. Know that being completely honest now will save you a lot of headache in the future. Withholding or misrepresenting information from your agent can mean losing coverage in the time of need.
Peace of Mind
Perhaps the biggest bonus of good homeowners insurance is the peace of mind in knowing that you and your loved ones are protected from all kinds of unexpected events.