What is called Home Insurance or Home Owners Insurance is a form of coverage in which you are protected from damages to your home and its property. The policy covers you in the event of any number of possible disasters that may directly or indirectly affect your home.
Homeowner insurance is a must-have for anybody who is the owner of any kind of abode, humble or otherwise, like a condo or townhome or the single-family home. Most policies usually cover the items within the dwelling, any loss of use of your home, and they also importantly provide liability protection for any kind of an accident that happens within the home or on its immediate property. The normal premium for such policies also includes property damage coverage as well as liability.
What it does
Basically, such policies serve as contracts between the insurance company and the owner of the home. Costs vary depending on the approximate cost of repairing or replacing the home in the event of some covered event that causes damage. The contract does not cover certain items, like flooding or earthquakes; there are specialized forms of insurance for these other destructive events. In general, the homeowner foots the bill for his or her premiums for a period of time, likely a 6-month or one-year stretch. In the case of a covered event occurring, the insurance provider will assess the damages and then, after a short period of deliberation, will help to replace or rebuild the damaged sections of the home. Sometimes the homeowner is paid with a cash equivalent lump sum.
Types of Coverage
Homeowner’s insurance covers 5 kinds of damages. They are damages to the dwelling, other structures on the property, any personal property within or on the property and any loss of use of the home and the subsequent living expenses incurred. Additional coverage is available for normal repairs, damages from trees and, in many cases, protection from identity theft.
Home insurance offers obvious benefits as it provides a homeowner the peace of mind in knowing he or she is protected from many potential damages that can happen over time while in occupancy. If you are in the market for a new home, it is important to remember that insurance is necessary in order for lenders to approve your loan!
What can happen to your abode is never predictable. Any number of terrible events may befall you over time, such as willful destruction, fires and earthquakes, sinkholes, tornadoes or hurricanes and gale-force wind to just name a few. Be protected! Call your agent today for more information. It is always helpful to periodically review existing coverages too!