Anyone Who Owns a Home Needs Homeowners Insurance
There are many costs that come with the privilege of home ownership and arguably one of the most important is the one for homeowners insurance. If you were not of the means to buy a home outright with cash, then you likely took out a mortgage. If this is the case, then you are mandated by your lending institution to purchase a good home insurance policy.
Homeowners insurance is the kind of insurance coverage that assists in protecting the building you own and your belongings found within it. This policy also provides the protection of personal liability coverage and also will provide coverage for a wide range of named perils. For example, a severe storm, a burst pipe or a fire, to name just a few. However, it is incumbent upon the homeowner to realize that this insurance will exclude coverage for other named events, like a major flood or an earthquake. Should you reside in an area that is prone to such events, you should look into obtaining supplemental coverage separately.
Essentially, a homeowner’s insurance policy is for people who own and reside in a single-family home. There are other types of policies designed to protect those who own and live in condominiums and for those who own an apartment building and rent out units all the way down to someone who rents out his or her own home.
A homeowners’ policy covers you from various events and conditions that can result in damage or destruction to your home, such as wind, fire, and ice or hail storms. Typically included for coverage are acts of theft and vandalism. As a policyholder you are protected from accidental happenings like an individual falling and breaking a limb on your property or your dog taking a bite out of a visitor.
Should one have a potential claim, then first off call your insurance provider to work out a visit from a claims adjuster to estimate damage and loss. Next, the insurance company will determine the validity of the claim and then work out the compensation you will have. This, of course, does not take into consideration the deductible you will first have to pay.
Some home insurance coverage providers will allow a person to opt for supplemental coverage, (aka riders), to help increase coverage of that which you feel is not protected enough.
A good homeowners’ policy also provides invaluable peace of mind in being assured that your home, likely the largest investment you will ever make, is properly protected from the many risks inherent in home ownership.