Home owners insurance, Home insurance comes in as an agreement between a person and an insurance company to take then loss that occurs in his or home after the insure has paid the some premium. the insurance protects the properties in the house and all the contents min the building.
his policy is very important to preserve the properties in your house most of the time the policy comes with additional protection like living expenses that pays if your home is damaged.
TYPES OF INSURANCE
The following are all types of insurance that people take out to protect buildings, land, and possessions in their homes:
- earthquake coverage
- flood coverage
- real estate insurance
- renter’s insurance
- replacement cost insurance
- residence insurance
Home insurance covers the following :
Homeowners insurance typically helps cover:
- Other structures on your property
- Personal property
- Liability for injuries or damage to someone else’s property
You may also be able to purchase additional coverages for greater protection.
Typical homeowners insurance policies offer coverage for damage caused by fires, lightning strikes, windstorms and hail.
But, it’s important to know that not all natural disasters are covered by homeowners insurance.
For example, damage caused by earthquakes and floods are not typically covered by homeowners insurance.
You may be able to purchase separate insurance policies to help protect your home and belongings against those types of risks.
One of the basic coverages of a homeowners insurance policy is dwelling protection, which helps cover the structure of the home in which you live (e.g. the house’s foundation, walls and roof).
Dwelling protection may also help cover other structures that are attached to the home, such as a garage or a deck, against certain risks.
OTHER STRUCTURES PROTECTION
Most homeowners insurance policies also include coverage for other structures that are on your property but separate from your home, like a detached garage, tool shed or fence.
PERSONAL PROPERTY PROTECTION
Homeowners insurance doesn’t just help cover damage to your home. It may also provide coverage for the personal belongings you keep within it.
Suppose your electronics are stolen from your home or your furniture is damaged by a fire. Personal property protection may help pay to repair or replace your belongings if they are damaged or destroyed by a covered risk.
Many insurers offer optional coverages that may further help protect the stuff you own.
For instance, you may be able to purchase extended coverage for items such as jewelry, watches and furs that have values above your personal property coverage limits.
A typical homeowners insurance policy provides liability coverage when someone not living with you is injured while on your property.
Suppose a visitor trips over your broken porch step. Bodily injury liability coverage may help pay for your resulting legal expenses or the visitor’s associated medical bills if you are found at fault.
You may be able to increase your liability coverage limits by adding a personal umbrella policy. Your agent can explain what options are available to you.
COVERAGE LIMITS AND DEDUCTIBLES
Keep in mind that each coverage in a homeowners insurance policy is subject to a limit the maximum amount your policy would pay toward a covered loss.
You may be able to adjust your coverage limits to your needs taking into account, for example,
the value of your home and belongings and how much it may cost to repair or replace them if they are damaged or destroyed by a covered risk.
In most cases, you will typically have to pay your deductible before your insurance benefits kick in to help cover a loss.
Read your policy or contact your agent to review your coverage limits and deductibles.
You can typically adjust them to fit your needs.
The protections offered by a homeowners insurance policy may serve as a safety net if the unexpected occurs.
A local agent can help you select the types of coverage and limits that make sense for you.
Home owners insurance should include the following :
1. Truly Comprehensive Coverage
First and foremost, you want a comprehensive perils policy for your homeowners insurance.
A named-perils policy provides coverage ONLY for the select types of damage named in the specific policy.
While it does cover the most common issues such as fire and theft, ANYTHING that isn’t explicitly named is omitted.
On the other hand, a comprehensive perils policy covers EVERYTHING with a few specific exceptions.
Let’s say you’re trying to blast a particularly nefarious bug with a can of insecticide, but accidentally grab some spray paint instead.
With a comprehensive coverage plan, you’re covered. Simply put, a comprehensive plan keeps you truly protected.
Beyond just being covered for more incidents, another reason you want comprehensive is because it makes getting the insurance to cover ANY incident easier.
With a named perils policy, you need to first PROVE a named peril did the damage.
2. The Right Price
Notice, we didn’t say the lowest price. If a homeowners insurance quote is too good to be true, it probably is.
While the sought-after comprehensive plans can cost more money, that isn’t always the guarantee. However, in our book, it is worth paying a little more each month for iron-clad coverage.
In addition, an extremely low price can be the result of an extremely high deductible or another drawback.
While saving money on insurance is something we love, don’t do it at your home’s expense.
An extremely high deductible can result in cheap plans.
3. A Single, Easy-to-Understand Deductible
Any good homeowners insurance plan should come with a simple deductible that you feel comfortable paying if you need to.
We’ve seen homeowners get into trouble when they sign up for plans, with unreachable deductibles only for disaster to strike and their high-deductible to keep them from the coverage they need and paid for.
An example of a type of deductible to avoid some homeowners insurance plans feature separate deductibles for certain types of coverage
like tropical storms. Once again, that kind of plan can leave homeowners paying MORE than their fair share of repair costs.
Generally speaking, the best homeowners insurance plans feature simple, easy deductibles — find one like that.
4 Personal Injury Liability
In addition to paying for home repairs after a catastrophe, your homeowners insurance also keeps you protected from potential personal injury lawsuits.
Most people just assume their homeowners insurance does it.
That assumption can be COSTLY if it doesn’t. While including personal injury liability insurance is common enough, sometimes that benefit needs to be endorsed separately.
If you don’t know if your homeowners insurance plan includes it for certain, find out now.
Accidents do happen one of the worst follow-ups is getting sued by a friend for an innocent mistake or oversight.
5. Guaranteed Replacement Cost on Dwelling
Beyond just being that big investment we’ve talked about, your house is also where you live and where your children grow up.
That’s why getting your home replaced regardless of the cost is a must-have in homeowners insurance plans.
What this clause will guarantee is that the insurance company will pay to FULLY replace your home regardless of whether that cost exceeds your limits.
Many companies limit the amount they will pay in an emergency and you’re left making up the difference.
You shouldn’t have to downgrade or settle for half-completed repairs because your company doesn’t want to 100% stand behind you.
Before you buy your policy, make sure that this crucial component is included.