Source: Pexels.com Sebastian Soerensen
Home insurance, or homeowner’s insurance, is a policy with customized home insurance coverage based on an individual's needs. There is no ‘blanket policy’ that covers everyone, since homeowner requirements vary from one person to the next. Home insurance plans typically guard against perils, including lightning strikes, wind damage, fire, and theft. These homeowner insurance plans may be beneficial vis-a-vis the repair and replacement of personal belongings and home structures. Home insurance plans are particularly useful when it comes to providing additional coverage for accidents that take place in the home. For example, if a visitor is hurt while on your property, insurance protection can be provided.
What Types of Additional Coverage Are Available to Homeowners?
Home insurance protects the home structure and attached/unattached structures (garage, shed, deck, fence etc.) on the property. It is an additional safeguard available to homeowners to guard against unforeseen perils which may arise. Homebuyers using mortgage brokers to purchase their homes are required by law to purchase homeowners insurance as part of the mortgage agreement. This protects the bank or brokerage’s real estate investment while the mortgage is in place.
It is important to understand what does homeowners insurance cover and what is excluded from the home insurance policies, for example, natural disasters such as flooding and earthquakes. Fortunately, there are insurance policies available to guard against these natural disasters but they come at a premium. Not everyone is a homeowner however, and this doesn't preclude protections with homeowners insurance plans. Folks wondering how to get renters insurance should also consider their options for personal property protection, liability insurance etcetera.
All reputable homeowner’s insurance plans provide additional home insurance policies pertaining to personal property protection. Personal property protection is particularly useful when it comes to insuring your personal belongings such as your TV, entertainment systems, jewelry, clothing, furniture, safe and contents, and so forth. In the unfortunate event of a burglary, the absence of homeowners insurance on your personal belongings could be devastating. This will likely result in substantial out-of-pocket expenses to replace stolen belongings.
Personal property protection is also available for items damaged or destroyed through wind, water, and fire perils. It is important to go over the terms and conditions of a homeowner’s policy to ensure a full understanding of what is covered by the specific plan. Many homeowners require additional coverage known as optional insurance to guard against unforeseen perils. This is particularly useful for personal property protection.
Read the Fine Print of Homeowners Insurance Policies
All homeowners insurance policies have coverage limitations. It is possible to increase coverage limits by paying higher monthly premiums, if applicable. Insurance policies in general are known as grudge purchases, since people are forced to ‘buy’ these plans to protect against unforeseen events. Given that our homes are our havens, it makes sense to provide all the necessary protections in the form of liability protection and personal umbrella policies for a home's occupants, and visitors.
The limitations on any individual homeowners insurance plan should be carefully evaluated against the needs of the homeowner. There are deductibles which need to be paid before any payouts from the insurance company are made. The details of these deductibles are embedded in the fine print of the homeowners insurance contract, and it behooves clients to go through this information with a fine-tooth comb to ensure a thorough understanding of all the necessary material.