Homeowners Insurance

How Home Insurance Helps

Lacking good home insurance coverage, it just takes one mishap to transform the dream of home ownership into a frightening ordeal. A home is often the largest investment an individual will ever make. Why not protect it with proper home insurance coverage? Keep in mind that homeowners’ insurance is required if you own your home but have a loan, but regardless it still remains crucial even if you have paid off your mortgage.

What is it?

Homeowners insurance is designed to safeguard not just the policyholder’s home but the people and possessions within it from a range of covered events and perils that often result in substantial financial loss. This coverage is categorized as property and casualty insurance, which has two main components. The main part provides financial protection for the home and for the contents within it from such natural disasters as wind, fire, hail and also from theft, vandalism and accidents. Another component is personal liability, which provides protection for your financial well-being should anyone be injured on your property and then take out a lawsuit against you.

This coverage is tailored toward those who own and live within a single-family home or a townhome. (Keep in mind that if you own a condominium or rent, then you will most likely need to buy different insurance coverage.)

How it Works

Home insurance functions similarly to other kinds of plans. When there is damage caused by some covered event, one then makes a claim with his or her insurer. Next, an adjuster will visit to evaluate the damage. If the claim is deemed legitimate, the insurance provider will then send out a check for the loss minus any deductible. Should the policyholder’s home be uninhabitable, the policy can also provide payments for living expenses while it is being repaired or replaced.

Types of coverage

Homeowners policies are usually pretty standard in what they cover. There are different levels of protection and supplemental coverage available as well that one can obtain. These “riders” will add protection not usually included in the policy, such as a garage or some other structure on the property.

Big Benefits

The biggest plus in carrying homeowner’s insurance is the peace of mind in knowing that your home is safeguarded, along with your belongings, against loss from a fire or severe weather event. Also, the personal liability coverage can be of great financial importance as well.