What About Homeowners Insurance?
Lacking proper insurance protection, it just takes one thing to turn the dream of home ownership into a nightmare. A home is often the biggest investment a person will ever make. It makes sense, then, to protect it with good homeowner’s insurance coverage.
What is it?
Homeowners insurance is designed to protect the policyholder’s home and the people and possessions within it from the myriad of covered events and perils that result in loss. This will include fire, theft, vandalism and accidents. Many argue that the most valuable aspect of this type of insurance is its built-in protection for your financial well-being should anyone be injured on your property and take legal action against you.
This coverage is considered a type of property and casualty insurance and has two main components. The biggest part of it is in protecting the home and its contents against covered natural disasters, like wind, thunderstorms, fire, hail, etc. Another aspect is the personal liability coverage that safeguards the policyholder and family from legal action from visitors being injured on the property and more.
If you own a home, home insurance will likely be required by the financial institution that lent you the money to purchase it. Avoiding the purchase of a policy, then the lending institution will put one in effect for you regardless.
Policy coverage usually extends to many natural disasters, but not all. Almost always is the exception of earthquakes, floods, and hurricanes from homeowners’ policies and one will need to obtain separate policies or riders (supplemental coverage) for these other perils.
How Much coverage?
The types of home insurance coverage are available at varying levels. Normally your state will have set minimums for what your insurance provider must offer in a policy. Of course, your bank will likely have its own minimum requirements when you take out a loan.
Coverage for Valuables
Riders are also helpful for your really costly items, like jewelry, coin collections or antiques. When buying a home policy, state what unique or valuable items you might have.
Perhaps the biggest perk of good homeowners insurance is the peace of mind in the feeling that you and your loved ones are protected from many kinds of unexpected events.