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Homeowners Insurance

Home insurance provides you with coverage against a wide range of losses related to your home. If you have a mortgage loan on your property, your lender likely requires you to keep an active insurance policy in place that covers the replacement value of the home. In the event your coverage lapses, the lender may purchase coverage on your behalf. Even if you own your home outright and do not have this requirement for homeowners insurance in place, it makes sense to take advantage of the benefits associated with this type of coverage. Without coverage, you may have to endure the cost of replacing your home entirely on your own.

A typical home insurance policy includes liability coverage. With this type of coverage, the homeowner may receive financial benefits if he or she is sued or otherwise financially responsible for anything from a dog bit event to a slip and fall accident on the premises. The policy usually also includes repair and replacement coverage if the property is damaged. In many cases, this type of coverage includes benefits for named perils, such as a windstorm, a fire and other types of events. However, some policies include coverage for all types of perils except for those that are specifically named in the policy. It is important to read your policy’s fine print carefully so that you understand how your benefits works.

You may also be able to purchase coverage for the contents inside the home, such as clothes, furniture, electronics and more. The cost to replace these items in a typical home that suffers a total loss can be enormous, and benefits can help you to avoid unnecessary financial loss.

Remember that there is a cost associated with filing a claim against a homeowners insurance policy. You typically will need to pay the insurance deductible for each claim that you file. A common deductible amount is one percent of the replacement value of the home, but the deductible amount varies by policy. You may even be able to adjust the deductible upon request to control the premium. For example, increasing the deductible may lower your premium amount slightly. Because you never know when a damaging event will take place, ensure that your home is properly covered today.






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