The Ins and Outs of Homeowners Insurance
Should you be a homeowner, you need to have homeowners insurance. Though there are no legal mandates dictating that one buy a homeowners policy, but should you have a mortgage (as most do), your financial institution will require you to carry the proper coverage. And even if you fully own your house, keeping it well insured is an important. After all, isn’t it smart to protect what likely is the biggest investment you will ever make?
Home insurance is another kind of property and casualty insurance. It financially protects your home and your belongings from damage from certain kinds of covered of events, like severe weather or fire. Homeowners’ policies also offer a level of liability protection in the event that claims by people injured on your property are take out against you.
Good home insurance is for those who own and live in their home. This does not apply to those who rent or own condos or townhomes. If you own a home and rent it out or live in a dwelling you don’t own, you will need to purchase others kinds of insurance.
A homeowner’s policy functions similarly to other types of insurance. If you experience a covered event, it is incumbent upon you to contact your insurance company and being the claim process. An adjuster will next visit you at your home and determine the extent of damage. Finally, the company then will offer you a settlement after you pay your deductible. If your home is totally destroyed or ends up uninhabitable, your insurer will also compensate you for living costs until you can live in your home again.
Homeowners insurance is pretty normal in that it covers things you would expect. Most policies provide protection from damage from fire or weather and from winds and even hail. Most do not provide coverage for damage resulting from earthquakes or floods. Most insurers will offer riders, (which is supplemental coverage), for your policy so as to cover that which is not normally covered. This means extra costs to your policy but they are often very much worth it.
The major plus in having a good homeowners policy is that your home and your loved one’s financial futures are protected, after all this is probably the biggest financial asset you will ever own. Having the included liability coverage can also be a giant benefit if someone hurts them self on your property or if, for example, your dog bites someone. The benefits are numerous.