A Primer on Homeowners’ Insurance
Without the right kind and level of insurance protection, it just takes one incident or event to turn a home ownership dream into a veritable nightmare. A home is often a person’s biggest investment ever- Why not protect it properly with the proper insurance coverage?
What is this Coverage?
Homeowners insurance is designed to protect one’s home and the people and possessions within it, from any covered events or perils that result in financial loss. Normally this will include fire, theft, accidents, and even vandalism. Many would argue that the most important aspect of this type of insurance is the built-in protection for a family’s financial well-being should anyone be injured on the property and then take legal action against you.
Home coverage is a kind of property and casualty insurance that has two major aspects. The main part is the protecting of the home and the contents within against covered natural disasters, like wind, fire or hail, etc. Another aspect is the personal liability coverage that protects the policyholder and his or her family from legal action from visitors being injured on the property and more.
If you own a home, you will need home insurance and will also be likely mandated to carry it by the financial institution that lent you the home-purchasing money. If you, for some reason, attempt to avoid obtaining a policy, then your lending institution will enact one for you and then add the payment to your mortgage payments. (Banks have an aversion to losing money and, note, their interests will supersede your own in the acquiring of the aforementioned necessary coverage.)
Your policy coverage will normally extend to some natural disasters, but not all. Almost universal will be the exception of earthquakes, floods, and hurricanes from a homeowner policy. (One will need to obtain separate policies for these other kinds of protections depending on where he or she may live.) Ask your insurance agent today about what coverage for natural disasters is best for you, your paticular situation and for the area in which you reside.
How much Coverage is Best?
The types of home insurance coverage that are available are offered at varying levels. Usually your state will have set minimums for what your insurance company must offer in a policy. Of course, one’s bank will likely have its own minimum requirements for the coverage needed. It is no surprise that the more costly your home and the belongings within it, the more you will spend on coverage premiums.
Coverage for Valuables
Riders (or supplemental protection) are helpful for pricey items, like expensive jewelry, a coin collection or antiques. When buying a home policy, your agent should ask as to what, if any, unique or valuable items you may have. Know that being completely honest now may mitigate an enormous amount of stress in the future.
Perhaps the biggest plus of good homeowners’ insurance is the peace of mind inherent in knowing that you and your loved ones are protected from many kinds of unexpected events.