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Homeowners Insurance

If you own your home and have a mortgage, you’re required to have homeowners’ insurance. Even if you don’t have a mortgage on the property, you’re still going to want it insured. Learn the basics on home insurance, including what it covers and how it works.

Homeowner’s insurance is a policy that protects your home if it’s damaged or destroyed by covered perils. It also provides the homeowner and his or her family members with certain types and amounts of liability insurance. The homeowner pays a premium to the insurance company. The amount of the premium is based on the value of the home and the amount of coverage the homeowner purchases. As the homeowner, you’re also expected to pay a deductible each time you submit a claim.

Below are the types of coverages generally offered as part of the homeowners insurance package.

• Property coverage – This provides coverage to the home and any attached buildings. It pays for covered losses like fire, storm, theft and vandalism.
• Personal property – This provides money to repair or replace the items inside your home, such as appliances, furniture, clothing, etc.
• Additional buildings – This offers coverage for additional buildings located on the property like garage or storage shed.
• Additional living expenses – If you have to live somewhere else while your home is being replaced or repaired, this coverage provides money to do so.
• Personal liability – This offers protection against lawsuits if someone is injured on your property and decides to sue you. It may also pay for lost wages, pain and suffering or funeral expenses.
• Medical expenses – This coverage pays for medical bills for people that are hurt while on your property regardless of who is to blame.

The benefits of having a good home insurance policy can’t be overstated. Few things can be more devastating than to lose your home and not have the means in which to replace it. A homeowners insurance policy is there to cover you against any loss or possible lawsuit resulting from damage to your home. It’s a cheap price to pay for the peace of mind it offers.