Guide to Homeowners’ Insurance
With only one accident, a person’s dream of home ownership can come to an abrupt end. A home is often the biggest investments a person will ever make. Why not protect such a huge investment with good homeowner insurance coverage?
Homeowners insurance is specifically designed to protect the home and the possessions within it from the consequences of an unexpected event that causes financial loss. Typically this would include fires, theft, and accidents. And most importantly, this kind of insurance can also help to protect your financial well-being should someone be hurt on your property and take out a lawsuit against you.
Who Should Have this Coverage?
Simply said, if you own a home you need good home insurance and will likely be required to obtain it by the financial institution that lent you the money to purchase the home. If you attempt to avoid carrying a policy, then your lending institution will acquire one for you and add it to the overall cost of your mortgage payments. (Banks will protect their investments too.)
Most likely your policy coverage will extend to many natural disasters, but not all. It’s almost standard that earthquakes, floods, and hurricanes will not be covered under a homeowners’ policy and one would need to buy separate policies to take care of this discrepancy. Be sure to speak with your insurance professional about what coverage for natural disasters is best suited for you and the area in which you reside.
The Level of Coverage
Insurance coverage types are available at different levels of coverage. Usually your state will have set minimums for what your insurance company should provide in a policy. Of course, your bank may also set minimum requirements for how much coverage you must buy. As a general rule, the more expensive your home and the possessions within are considered, the more you will likely spend on premiums.
Protection for Valuables
Riders (supplemental coverage) are helpful for more valuable items, like priceless jewelry and antiques. When obtaining a home policy, your agent should ask you what, if any, unique or valuable items you might own and wish to more fully protect. Remember that withholding or misrepresenting information from your agent can result in an item losing its coverage should some kind of an accident happen. So, provide all the information you can to ensure proper and full protection of your belongings and property.