Homeowners’ Insurance Explained
For most homeowners, buying said home is the largest investment they will ever make. As such it is important to protect it with good homeowner insurance. If you own your own home it is wise to consider a comprehensive homeowner’s insurance policy.
What is this coverage?
Homeowners’ insurance coverage is a type of property insurance that extends protections not just to the home but also to one’s personal possessions that are within it. Also, a homeowner policy can provide personal liability protection to safeguard from legal action arising from such instances as a person slipping and injuring his or herself on the property.
Who needs it?
Anyone who owns and lives in their own home can greatly benefit from good homeowner insurance. Of course if one pays a mortgage, he or she will be mandated by the bank or credit union to obtain some level of this coverage. Even if one fully owns the home, it can still benefit the individual greatly in a number of ways.
How it works
Homeowners insurance is pretty easy to understand and put into effect. Should the policyholder have an accident or experience some other covered loss, such as a fire or, say, wind storm damage, then it is a matter of simply contacting the insurance company, which normally next results in an adjuster visiting to assess the claim’s validity and determining the extent of the damage. Once the claim is Okayed, the insurance provider pays up to the policy limit less whatever deductibles are outlined in the contract details. If the home is rendered uninhabitable due to the damage, the insurance company will often compensate the policyholder to help in getting lodging elsewhere during repairs or rebuilding efforts. If the claim also has personal liability issues, the insurer can greatly help in settling with other parties or providing compensation for legal defense.
Types of policies
Homeowners’ policies are pretty much universal- Most will provide coverage for many extreme weather events, such as hail, rain and wind, along with protection from fire and smoke damage. Note that most policies will not include protection for damages to earthquakes and floods. (Specific policies are available for this coverage.)
A Big Benefit
The main benefit in having good home insurance is the peace of mind in knowing that your home and family are protected from potential financial loss.