For most folks, a home purchase is the biggest monetary investment they will ever undertake. Given this fact, it makes perfect sense that one would want to protect it with good homeowner insurance. If you are a homeowner, you would be wise to consider a comprehensive homeowners insurance policy.
What is does
Homeowner's insurance coverage is a kind of property insurance that protects not just the home but one’s personal possessions within it. Additionally, a homeowner’s policy will often extend personal liability protection for you to safeguard you and your family from legal action arising from an individual slipping and falling on the property.
All who own and live in their own home can greatly benefit from a good homeowner’s insurance policy. If you pay a mortgage, you will be mandated by the lender to carry some level of coverage with a homeowner’s policy. However, should your home be bought and paid for, you still will benefit greatly in a myriad of ways by carrying homeowner coverage.
How it functions
Homeowner's insurance is not difficult to understand or to use. Should you have an accident or other covered loss-causing event, like fire or, say, wind damage, you simply contact your insurance provider, which normally results in an adjuster paying you a visit to assess the validity of the claim and the extent of the damage. Once your claim is given the proverbial green light, the insurance company will pay up to the policy limit less whatever deductible you owe. If your home is uninhabitable due to the damage, your policy will often compensate you to live elsewhere during repairs or re-building. If the claim involves personal liability, the insurer will assist you in settling with the other party or provide payment to acquire for you a legal defense if needed.
Kinds of policies
Homeowner's policies are almost universal in their make-up. Most will provide coverage for common extreme weather events, like hail, rain and wind storms, along with protection from fire and smoke damage. Keep in mind that most policies will exclude protection for damage from earthquakes and floods. (Supplemental policies are available.)
There are two distinctions to be made with the kinds of coverage offered. One kind of policy will pay out “actual value,” which is the actual value, given depreciation, of your personal belongings lost. The other, called “replacement value,” is the actual cost to replace the property presently. (This coverage will mean higher premiums.) Most policies are flexible in that the policyholders can add riders or endorsements, which is extra or supplemental coverage with extra premiums to cover that which the normal policy usually exclude.
The main plus in carrying home insurance is the attainment of peace of mind in knowing that your home, your piece of the American Dream, is protected from financial loss. Personal liability protection is an equally powerful component of this kind of policy.