Why Is It Important To Have Homeowner's Coverage?
Homeowner's Insurance offers protection for damage or loss caused by storms, fire and theft. It can also provide protection for your valuable possessions. It is imperative to prepare for the unexpected when there is a chance that lack of protection can lead to financial hardship. In short, where there is a financial interest, there should be a specific policy in play to minimize the potential of suffering from great financial loss.
What A Basic Homeowner's Insurance Policy Should Look Like
Though all insurance policies are fully customizable, depending on your budget, there are certain elements that exists in a basic homeowner's policy. Your agent will usually work with you on determining how much coverage you'll need, as you would want to make sure that you also have sufficient coverage to ensure the repair or replacement of your home if you should experience a covered loss.
A basic homeowner's policy usually includes Dwelling coverage. This coverage can be used to repair or rebuild your home due to damage resulting from fire, smoke, theft or vandalism or by inclement weather such as lightning, wind or hail. You would want to ensure that also have enough coverage for this repair or replace your home in any of these events.
Other Structures Coverage
This is coverage provides protection for structures other than home, such as a fence, if they are damaged by a covered peril or risk. If a tree falls on your detached garage, other structures coverage may be used repair or replace it.
Personal Property Coverage
Personal property coverage can cover your belongings, such as furniture, clothing, sporting goods or electronics, in the event of a covered loss. Whether your personals items are damaged in your home or anywhere else in the world, they could potentially be covered. Note: Always ensure that you are aware of any items that are excluded from your policy.
This type of coverage helps protect you if you or a family member are sued for accidental injury or property damage. An example of this would be if someone is injured in your home and you're found legally responsible, liability coverage can help cover costly legal defense fess, settlement fees and more.
What Basic Homeowner's Insurance Policies Do Not
Specific types of damage or loss that your homeowner's insurance won't cover may be listed on your policy as exclusions.
In this case, the insurance will deny your claim if you experience these losses. Most policies come with a variety of exclusions.
Damage caused by floods is almost always a common HO-3 policy exclusion, but even homeowners with an HO-5 policies, which provide broader coverage than HO-3 policies, are likely not covered for flood damage. Typically, you will need to purchase a separate flood insurance policy.
Earthquakes can cause much harm to home structures than most other events. They can damage housing foundations and collapse walls. This may be excluded from your homeowner's policy but can be covered by purchasing a flood policy.
Ground movement, mold, wear & tear, infestations, nuclear hazards, government action, dangerous and/or aggressive dogs, wind damage in hurricane prone states, intentional loss and/or neglect and other common exclusions can normally be purchased as separate policies or add-ons.
What To Look For When Purchasing A Homeowner's Insurance Policy
We recommend that you and your agent or agency have a close relationship. Your lifestyle should always be joined with appropriate insurance coverage to ensure that you do not experience a tremendous financial loss. There are key areas that you can focus on when speaking with your insurance
Buy The Right Policy
Some things to keep in mind when considering the right coverage, as well as the right amount of coverage, are the structure of your house, your belongings, your potential liability to others, and your living expenses. You want to be able to rebuild or replace your house and the things inside of it, in the event that you experience a covered loss.
Look for a carrier who can provide you with what you need. An ideal carrier will have the ability to:
- provide appropriate coverage specifically for your area
- has competitive rates and good discounts
- has a good financial strength rating
- has good reviews from professional sources and customers
- offers 24/7 assistance through its website, live operators, or a local agent