Understanding Home Insurance

Homeowner’s insurance allows you to have financial protection if your home or the contents of your home have been damaged. If you or your family member are held legally responsible for injuries that have occurred on your property, you are also protected. Insurance is generally required by most mortgage lenders in order to secure a loan. 

There are many different types of insurance policies that you can use to cover your home. You can get anything ranging from a basic insurance policy that just covers your home overall or you can go for broader protection for your home. The types of coverage that you can get will vary from state to state.

Natural Disasters

Most insurance policies will cover damage caused by fire, wind, lightning, theft, or vandalism. Hurricane coverage typically has a higher deductible. Floods and earthquakes typically require additional coverage, so if you live in an area that is susceptible to these issues, then you should inquire about additional coverage. 

The Standard Policy

Most insurance policies include certain basic coverages like dwelling coverage which is the allowance for you to either repair or rebuild your home. This includes the electrical systems, the plumbing systems, and the HVAC systems. You need enough coverage for your home in order to rebuild in the event that such an event would cause a need for it. Your insurance agent can help you to find a comfortable number that will allow you enough coverage for rebuilding.

Standard coverage also may include “other structures” which can include fences, garages, cottages, pool enclosures and sheds. You’ll also be covered for your personal property which includes clothing, furniture, and electronics that may be damaged in your home due to theft or disaster. 

Loss Of Use Coverage

This type of coverage will pay for your living expenses if you need to move out of your home while it’s being rebuilt or restored. This would allow you to find alternative arrangements when you need it most, so it’s an important aspect of home insurance coverage. 

Liability Coverage

This coverage is one of the most important aspects of purchasing home insurance. Having liability will help to protect your assets and cover defense costs in the event that you have been held liable for causing and injury to other people or property. 

Additional Coverage Options

There are many different types of additional coverages that you can add to your homeowners insurance policy to help you get the right umbrella of coverage for you. Contact me if you need information on local insurance agents in the area who can assist you further.