The Importance of Homeowners’ Insurance
Without proper insurance protection, it just takes one incident or event to turn the dream of home ownership into a nightmare. A home is often the largest investment an individual will ever make. Why not protect it right with the right insurance coverage?
What is it?
Homeowners insurance is engineered to protect one’s home, and the people and possessions within it), from any covered event or peril that results in loss. Usually this includes fire, theft, accidents, and even vandalism. Arguably the most noteworthy aspect of this kind of insurance is its built-in protection for your financial well-being should anyone be injured on your property and then file a lawsuit against you.
Home coverage is a type of property and casualty insurance that has two main components. The main part of such protection is the protecting of the home and the contents within against covered natural disasters, like wind, fire or hail, etc. Another aspect is the personal liability coverage that protects the policyholder and family from things such as legal action from visitors being injured on the property.
Who needs it?
If you own a home, you will need home insurance and will also be likely required to carry it by the financial institution that lent you the money to buy it. If you try to avoid purchasing a policy, then your lending institution will put one in effect for you and then add it to your mortgage payments. (Banks have an aversion to losing money.)
Your policy coverage will usually extend to some natural disasters, but not all. Almost standard is the exception of earthquakes, floods, and hurricanes from homeowners’ policies. You will need to obtain separate policies for these other perils. Ask your insurance professional about what coverage for natural disasters is best for your situation and for the region in which you live.
How much coverage?
The kinds of home insurance coverage are available at varying levels. Usually your state will have set minimums for what your insurance provider should offer in a policy. Of course, your bank will likely have its own minimum requirements for the coverage you must purchase. It is no surprise that the more expensive your home and the belongings within it, the more you will spend on coverage premiums.
Riders (or supplemental protection) are helpful for your really items, like priceless jewelry, a coin collection or antiques. When purchasing a home policy, your agent should ask as to what, if any, unique or valuable items you might have. Know that being completely honest now will save you a lot of headache in the future.
Perhaps the biggest bonus of good homeowners insurance is the peace of mind inherent in the feeling that you and your loved ones are protected from many types of unexpected events.