The 411 on Homeowners’ Insurance
Without proper insurance coverage, it just takes one bad turn of events to turn the dream of home ownership into a nightmare. One’s home is often the largest investment he or she will ever make. Protect it properly with the right insurance coverage.
Homeowners insurance is designed to safeguard one’s home and the people and possessions within it from any covered event or issue that may result in loss. Usually this includes fire, theft, accidents, and even vandalism. There is also the built-in protection for a policyholder’s financial health should someone be injured on his or her property and then litigate against you.
Good homeowner’s insurance coverage is a kind of property and casualty insurance that has two main aspects. The main part of such protection is the coverage of the home and the contents within against any and all covered natural losses, such as wind, fire or hail, etc. Another component is the personal liability coverage that offers protection for the policyholder from legal action resulting from a visitor being injured on one’s property.
If you are a homeowner you will benefit hugely from home insurance coverage and will also likely be mandated to carry it by the financial institution that provided the loan for the home purchase. If you try to avoid purchasing a policy, then the bank (or credit union, etc.) will obtain one for you and then add the costs to your mortgage.
Your policy coverage will usually extend to some natural disasters, but not all. Almost standard is that earthquakes, floods, and hurricanes will be excluded from homeowners’ policies. You will need to obtain separate policies for these other protections. Speak with your insurance agent about what coverage for natural disasters is best for your situation and for the region in which you live.
Levels of Coverage
This type of home insurance coverage is made available at a myriad of levels. Normally each state will set various minimal coverage levels for the insurance provider to offer in a policy. Of course, your bank will also have its own minimum requirements for coverage that loan holders will need to obtain. Obviously, the more valuable your home and the belongings inside, the more the coverage premiums will increase.
Coverage for Valuables
Riders (aka supplemental coverage) are helpful for one’s more valuable items, like priceless jewelry, collectables or antiques. When purchasing a home policy, one’s agent should enquire as to what, if any, unique or valuable items you might own. Being completely open now will save you a lot of problems in the future.
Arguably the biggest benefit bonus of a good homeowners’ insurance policy is the peace of mind given to those who are protected from many types of unexpected events and liabilities. It can help with one sleeping at night…