Introduction to Homeowners’ Insurance
Not obtaining good homeowners insurance protection means you are just one accident away from turning the dream of home ownership into a horrible nightmare. A home is usually a person’s biggest purchase he or she will ever make. Why not protect such an investment with the right level of insurance protection?
What is it?
Homeowners insurance is tailored specifically to safeguard an individual’s home, along with the possessions within its walls, from any covered peril that results in financial loss. Usually this will include such events as a fire, an act of theft, various and sundry accidents, and even vandalism. Most would agree that the most important component of this type of insurance is the built-in protection for your financial future should anyone be hurt on your property and then take legal action against you.
Homeowner coverage is a type of property and casualty insurance that has two main components. The main part of this coverage is the safeguarding of the home and the contents within against many named natural disasters, like wind, fire or hail. Another important part of this protection is the personal liability coverage that safeguards the policyholder and his or her family from issues such as legal action from visitors being injured on the property.
Who needs it?
If you own a home, you will need to purchase home insurance and will be mandated to do so if you carry a mortgage. The financial institution that lent you the money to buy your home will always seek to protect their investment in you. If you try to get away without buying a policy, then your lending institution add this coverage for you and put it in with your mortgage payments.
Your policy coverage will normally extend to various natural disasters, but not all of them. Almost all will exclude earthquakes, floods, and hurricanes from your homeowners’ coverage and you will need to purchase separate policies to have protection from these other risks. Ask your insurance agent about what coverage for natural disasters is best for your situation and budget.
How much coverage?
The kinds of home insurance coverage are available at varying levels. Usually your state will have set minimums for what your insurance provider will offer in a policy. And your bank, too, will likely have its own minimum requirements for how much coverage you must purchase. Normally, the more expensive your home and the belongings within it all add up to being, the more you will put out on coverage premiums.
Protection for valuables
Riders (aka supplemental coverage) are helpful for your more valuable items, things like priceless jewelry and art, a coin collection and antiques, etc. When obtaining a home policy, your agent will normally inquire as to what, if any, unique or valuable items you might own. Keep in mind that withholding or misrepresenting information from your agent can mean losing coverage in your time of need, so be open ad honest
Perhaps the biggest plus of good homeowners insurance is the peace of mind in knowing that you and your loved ones are financially safeguarded from all kinds of unexpected loss.