Homeowners Insurance

Understanding the Basics of Homeowners Insurance

Anyone who owns a home should have homeowners insurance. It is the best way to protect your investment in the event of a minor mishap or major disaster. There is also protection if you or a family member is held legally liable for injuries to others or destruction to their property. Having this coverage is not optional because in most cases lenders demand this insurance before approving a mortgage.

What Type of Incidents are Covered?

Different polices will cover different mishaps. It is best to speak with an insurance agent to learn what they offer. Some things that are usually covered include windstorms, lightning, fire, hail, vandalism, and theft. Damage from earthquakes and floods is not covered by traditional homeowners insurance. You will need coverage specifically for those mishaps.

Types of Coverage

Liability coverage is for when you are sued because someone gets injured on your property. Then there is personal property coverage. This is for property stolen or damaged inside or outside of your home. For example, if your ring is stolen while you are on vacation, then you can file a claim even though the ring was not stolen from inside your home.

Dwelling coverage is for the physical home, like the roof and walls. But it should also cover additional structures such as a shed or separate garage.

An optional choice for coverage is reimbursed living expenses. If your home should become uninhabitable, then the insurance would temporarily cover living costs such as hotel stays and food for a specific time.

In any case, you should have homeowners insurance if you own a home. It is a smart thing to do and it protects your investment in your home.