Things to know about Homeowners Insurance
The dream of home ownership is shared by most Americans, but don’t let such a dream go bad by not obtaining protection from potential damage or destruction to your home, like that from a fire or severe storm for example. That’s why it’s vital to purchase good homeowners insurance to protect what is often the biggest investment you will ever make.
What is Home Insurance?
Home insurance is just as its name implies; it is insurance coverage to protect you and your home. A homeowner’s policy can safeguard your home from damage arising from a multitude of named perils. It also gives you personal liability coverage to protect you from events such as a person slipping, falling and injuring him or herself on your property or even from your dog biting an individual.
A homeowner’s policy is designed for those who own a home and also reside in it. If you pay a mortgage, your lender will always mandate that you carry home insurance coverage, but even if you have managed to pay off your home mortgage, this coverage can still be a financial life-saver.
How does it function?
A homeowner’s policy operates just like other types of property and casualty insurance. If you go through what you deem a covered event, then you simply get in touch with your insurance agent to put in a claim. An adjuster then will pay you a visit to evaluate the damage and certify that it was caused by that which is covered in your policy. The insurance provider then will either pay for whatever costs are incurred minus the deductible you owe. Alternatively, the company might provide you a check for the covered dollar amount.
Different kinds of coverage
Homeowners’ policies are usually quite standard. They all usually cover events such as fire, wind and hail storms and exclude damage resulting from flooding events and earthquakes. Also any so-called unnatural acts, like a plane falling from the sky onto your home, will not be covered. However, available are various endorsements and supplemental coverage (aka riders) you can obtain to cover that which is normally excluded from a typical policy. This, of course, is an added expense.
There are two big benefits in purchasing good homeowners insurance coverage. One is the protection of your home from such things as fire or weather damage and in protecting yourself from cases in which to you are facing legal action for personal liability, should someone be hurt on your property.