The 411 on Homeowners Insurance
It’s easy to forget how, with just one accident, a person’s life can quickly change and with this change the dream of property ownership can be utterly destroyed. This is why all should protect their home with good homeowner insurance coverage.
What is Homeowners’ Insurance?
Homeowners insurance is engineered to protect one’s home and his or her belongings that reside within should some loss causing event ever occur. Typically, any loss causing event will include fire, theft, vandalism and accidents. However, this coverage can also protect your financial well being should someone be injured on your property.
Who Needs Coverage?
If you are a homeowner, then you will need to carry home insurance. Most of the time the financial lender that provided your home loan will also mandate that you obtain coverage. If you don’t purchase coverage, then the lender may take out a policy on your behalf and add the cost to your monthly mortgage. Banks and credit unions also seek to protect their investment in you.
Natural Disasters Protection
Most likely your policy will offer protection from some natural disasters; however earthquakes, floods, and hurricanes will normally require separate policies. It is important to ask your agent about coverage options for natural disasters where your home is located. Without proper coverage, it’s likely that you will pay out-of-pocket should any of these event ever cause you loss.
The Levels of Coverage Needed
Coverage is offered at various levels. Normally, each state will specify minimum requirements for what each insurance company must provide. Then there is the bank that may have minimum requirements for coverage that one must carry as well. The more valuable your home and the possessions within, the more coverage you will should obtain.
Coverage for Liability
Homeowners can also be protected from risks stemming from liability issues. For instance, should a person trip on something you left out as they are heading up to your door and break a bone, then you as the homeowner can be held liable for any resulting medical costs, lost work pay and more for that injured person. Good home insurance can pay for these expenses as well as legal fees. When a claim is filed, the homeowner can often just pay the deductible and the insurance provider can then pay out for most, if not all, of the remaining costs.
Coverage for Antiques and Valuable Jewelry?
For those items that are especially valuable, such as antiques, collectibles or jewelry, you might benefit from the purchase of extra coverage or what is known as a “rider.” When buying a home policy, your agent should enquire about any items you own that might be extra valuable; it is important that you be forthcoming with information as not being upfront with the agent may cause items to not have protection in the event of some accident or event.