Homeowners Insurance– Your house is one of your most important investments, and the best way to protect it is with a homeowner’s insurance policy. Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it.
Damage caused by most disasters is covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners’ responsibility.
Each home insurance policy is different, but standard policies usually provide: broad coverage for damage to your house and any permanent structures on your property (unless the cause of the damage is specifically excluded in your policy.), damage to your personal property due to causes specified in your policy, and limited coverage is available for items like stolen jewelry. Coverage amounts vary depending on your state of residence.
Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This also includes damage caused by household pets.
Chances are your home is likely one of your largest investments, and that’s why protecting yourself financially if something unexpected happens to your home or possessions is so important. Consider these possibilities:
- If you are a victim of theft and vandalism, it can reimburse you for your loss or pay for repairs.
- If you are still paying for your home, your lender will require insurance.
- If your home was destroyed by fire or damaged by a natural disaster, you’d need money to repair or replace it.
- If a guest in your home is injured, liability protection and medical coverage help pay expenses.
Homeowners insurance is meant to cover unexpected damage, not routine maintenance. Discuss with our agent about what is covered and read your policy so you know exactly what’s included and what is not.
You might want to consider asking the following before deciding on coverage.
- How much will it cost to rebuild my house and replace my belongings if they are damaged or destroyed? (Ask your agent to talk you through your home’s features and the things you own so you can make an informed decision about coverage.
- Determine if our insurance company has a good reputation for customer service. Is it known for paying claims fairly and promptly?
- What discounts are available? (Ask about multiple policies, security system and fire protection discounts.)
Because your needs are different from anyone else’s, it’s best to determine with your agent the right amount of insurance coverage you require.