Information on Homeowners’ Insurance
Lacking proper insurance protection, just one incident or event can turn the dream of home ownership into a nightmare. A home is likely the largest investment an individual will ever make, so it makes sense to protect it with good home insurance.
What is it?
Homeowners insurance is designed to protect, you guessed it, one’s home, and the people and possessions within it, from any covered event or peril that results in financial loss. Usually this includes fire, theft, accidents, and even vandalism. Perhaps the most noteworthy aspect of this type of insurance is the built-in protection for your financial well-being should anyone be injured on your property and then take legal action against you.
Homeowners’ insurance is a type of property and casualty insurance that has two main components. The main aspect is the protection of the home and its contents from covered natural disasters, like wind, fire or hail, etc. Another component is the aforementioned personal liability coverage that protects the policyholder and family from litigation.
Who needs it?
If you own a home, you will need home insurance and, should you have a loan, will also be required to carry it by the financial institution that lent you the money. If you avoid the purchase of a policy, then your lending institution will often put one in effect for you and then add it to your mortgage payments.
Your policy coverage will usually extend to some natural disasters, but not all. Normally exclusions include earthquakes, floods, and hurricanes. You will need to obtain separate policies for these other coverage needs. Ask your insurance professional about what coverage for natural disasters is best for your situation and for the region in which you reside.
Levels of Coverage
The types of home insurance coverage are available at varying levels. Usually your state will have set minimums for what your insurance company should provide. Of course, your bank will likely have its own minimum requirements for the coverage you must carry. It is no surprise that the more expensive your home and the belongings within it, the more you will pay on coverage premiums.
Coverage for Valuables
Riders (or supplemental protection) are helpful for your really expensive items, like priceless jewelry, a coin collection or antiques. When buying a home policy, your agent should inquire as to what, if any, unique or valuable items you might have.
Peace of Mind
Perhaps the biggest benefit of good homeowners insurance is the peace of mind inherent in the knowing that you and your loved ones are protected from many kinds of unexpected and loss-inducing events.