What Is It?
A homeowners insurance policy is specially designed for any person who owns a property that they consider their primary residence. Homeowner policies help cover against damage to the structure itself as well as your personal possessions in the home in addition to providing liability coverage against accidents that may occur on your premises. Typically divided into four separate categories, homeowners insurance covers:
Dwelling: The physical structure of your home, includes interior floors, cabinets and countertops, bathroom fixtures, and permanently attached structures.
Other Structures: Structures not directly attached to your home. This ranges from detached garages to tool sheds and fences.
Personal Property: Your personal property and items you value which are also known as your contents of the home. Personal Property ranges from furniture and appliances to clothing and accessories, etc. Many policies have special limitations on higher value items, in which case a personal articles floater would be recommended.
Loss of Use: This coverage specifically helps as a reimbursement of costs to the insured when your home becomes uninhabitable due to a covered loss.
Home policies standardly include a variety of named perils ranging from water damage, mold, personal liability, and windstorm/hail in addition to the multitude of other exposures named in your home policy jacket.
Why Is It Important?
There are a multitude of reasons everyone who owns a home should carry homeowners insurance. Homes are our great accomplishments, when we purchase our homes we often spend a massive amount of time and money furthering our investment. As homeowners, we should equally want to protect our investment in order to have the proper peace of mind that coverage could be available in the event of a loss. Homeowners Insurance is a great way to offer coverage in the event you have an issue whether is it physical damage, a sudden incident, or a legal issue pertaining to your property. There are many carriers that offer different options to ensure you are the most comfortable with your coverage.
Deductibles, personal property replacement cost or commonly known as replacement cost on contents endorsement allow you as the policyholder and homeowner to have more control over out of pocket expenses should you ever utilize your policy for a claim. There are also a slew of discounts available for home policies such as burglar alarms, windstorm mitigation inspection credits, and secured community discounts in order to bring the cost down and make the premium as affordable as possible
How Much Coverage Is Needed?
All carriers offer what is called a replacement cost estimator, utilizing this tool carriers and homeowners are able to properly determine a more accurate rebuild value of your home. This is important because the market value or loan amount will always differ from the actual rebuild value should you have a total loss and need to rebuild your home.
The majority of lenders if you are purchasing a new property or re-financing your home, will require you to carry a certain policy limit in order to help protect their investment in the property however it’s an advantage to a homeowner to take out a private policy because you benefit from the long list of coverages automatically included.