In this day and age, it is prudent to avail of a homeowner's insurance policy. Given the current unpredictable weather conditions and the chance of hazards while you are away from home on personal or official work, having homeowner's insurance can be a great thing.
Many feel that homeowner's insurance has no real value. This is because they consider it as more of an unnecessary expense. However, one should not be looking at it in this way. After all, the amount that you pay every month as home insurance premium is a very reasonable one.
In return you get valuable protection. Those who secure a home mortgage generally have to secure a homeowner's insurance as part of the mortgage process. The lender generally requires this. With this policy in place, the homeowner need to worry about unforeseen contingencies.
COVERAGE PROVIDED BY HOMEOWNER'S INSURANCE Here are some of the areas that come under the purview of homeowner's insurance:
- Coverage for losses due to damages to your home's structure -- If the house's structure is damaged, the homeowner's insurance policy will pay for the repairs. This includes damages caused by lightning, fire, hailstorm, snow storm, theft, vandalism, and leaks from the plumbing, as well as frozen plumbing.
- Coverage for losses on personal belongings -- Home insurance will provide coverage for the loss of personal belongings. Anything that you place within your home could be covered by this insurance. This coverage usually ranges from 50% to 75% of your home's structure coverage.
- Provides for temporary living expenses -- In the event that your home is damaged and is getting repaired, you might need to temporarily live elsewhere. The home insurance policy would help you to pay for the bills that emerge on your living elsewhere temporarily.
- Provides for Personal Liability Coverage - If someone who visited you happened to have an accident in your home, where you were an inadvertent cause, he may sue you for damages. The fees that have to be paid in such lawsuits are covered by most home insurance policies.
HOME INSURANCE POLICY TYPES Home insurance policy types are denoted as HO-1, HO-2, HO-3, HO-4, HO-5, HO-6, and HO-8. HO-3 is the one most opted for. It offer comprehensive coverage and is closely followed by HO-4. HO-5, HO-6, are for condominium owners and HO-8 is for older homes. HO-1, HO-2 offers limited coverage.
SUMMARY Do not neglect to read the fine print prior to signing on the dotted line. Check how all the terms and conditions would apply in the event of a claim? After you take up a homeowner's insurance policy, check up on the coverage offered by the insurance company. Find out if any new coverage is being offered. Based on this, insurance companies would either add something new or make modifications on the coverage that they offer.
Home insurance is not something that is only applicable to homeowners. Those who spend their days in rented houses can get similar benefits from a renter's insurance policy. This form of home insurance offers coverage for damages to personal belongings.
One thing to note about the different home insurance policy types is that most of them do not provide coverage for damages caused by hurricanes, floods and earthquakes. Only a few insurance dealers cover homes against natural disasters. To get this coverage, you would have to approach these dealers individually.
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