The ins and outs of homeowners insurance
If you own a home, you need to protect your investment, and the way you do that is to insure it. Homeowners insurance is a complex product and it’s important to understand the ins and outs of it.
What is it?
Home insurance is a type of property/casualty insurance that not only covers your home itself but also the possessions you have inside it. In addition, your homeowners policy provides you liability coverage in case someone gets injured in your home or on your property.
Who is it for?
Insurance for a home is for anybody who owns his or her own home and lives in it. If you don’t live in the home or if you live in a home that someone else owns, you need different kinds of insurance.
How does it work?
Homeowners insurance protects you against named perils, such as fire or wind damage, while specifically excluding other types of damage, such as from floods. If your home is damaged or if you experience an event that you think might trigger your liability coverage, then you have to file a claim with your insurance company. An adjuster will evaluate your situation, decide whether you are covered and offer you a settlement. If your home is uninhabitable, your insurer will arrange for you to live somewhere else and pay for your expenses.
Types of coverage
Homeowners policies are pretty standard, covering the same things and excluding the same things. Almost all policies exclude damage caused by floods and earthquakes, and they almost universally cover damage from wind, hail and fire. There are riders and add-ons you may be able to add to your policy to cover things that aren’t normally covered, such as storage sheds on your property or a trampoline.
The major benefit of having home insurance is that you cover your home and protect your rather large financial investment from loss due to natural disaster. Another benefit is the liability coverage it provides, which can protect your other assets in the event you are sued for negligence because of something that happens on your property.
Good Homeowners Insurance
Buying a home is usually the biggest investment a typical person will make. As such it makes sense to protect such an investment by obtaining quality home insurance. Homeowners insurance is a complex product and it’s important to understand the ins and outs of it.
Home insurance, like so many other policies, is a kind of property/casualty insurance. It not only protects your home but also the possessions within it. Also, a homeowner’s policy provides liability coverage for the instances in which someone might get hurt in your home or on its property and take legal action against you.
Home insurance is designed for anyone who owns and lives in his or her dwelling. If you are a landlord, own a condo or are a renter, you will require a different kind of insurance.
Homeowners insurance safeguards you from certain named perils, like fire or storm damage. However, it will usually exclude coverage for other kinds of damage, like that from a flood or earthquake. (In these cases, you would need specialized coverage for these events.) If your home is damaged or destroyed, or if you go through an incident in which your liability coverage is activated, then you first must file a claim with your insurance company in order to start the process of being helped. After you have filed the claim, an insurance adjuster will then pay you a visit to evaluate your situation and determine whether it falls under your coverage. Should it all proceed properly, you will then be offered a settlement. Should your home be uninhabitable, your insurance provider can make arrangements for you to live elsewhere until such a time as you can move back in. This, should it be in your policy coverage, is all paid for by your provider.
Moist homeowner policies are fairly universal, providing coverage for the same aspects and, incidentally, excluding the same items in general for which you would need to buy separate coverage. Almost every policy will exclude damage caused by the aforementioned floods and earthquakes, but they will almost all cover damage resulting from wind, hail and fire. There are available riders and add-ons that you can often purchase to cover things that aren’t usually included, like a garage or storage shed on your property, to name just two.
The major plus in having home insurance is that the likely largest investment you will ever make is financially protected from losses due to natural disasters. Another big benefit is the liability coverage it gives a homeowner, which can protect you and all your assets should you be sued for negligence because of an incident that takes place on your property.