That’s why you need to invest in a home insurance policy. Here’s all you need to know about homeowners insurance.
The Basics
Basic home insurance policies generally cover your home’s physical structure, as well, as your personal possessions. Plus, they also provide liability coverage to protect you in case you’re sued for property damage and personal injury caused by you or other family members.
Liability coverage typically provides coverage for a small amount of no-fault medical bills. For instance, if your dog bites someone’s child, your home insurance policy will cater for the medical costs to patch him up.
Protects Your Home
Homeowners insurance safeguards you against various risks that come with owning a home. The benefits are uniquely designed to cover the structure of your home, your personal possessions, liability protection, and additional daily living expenses. It doesn’t cover all types of risks, though. For instance, it doesn’t include the risk of title defects, which could subject your home’s ownership to serious legal challenges.
Structural Damage Repair
Home insurance generally covers the risk of destructive events like fires and tornadoes. So, whenever there’s a need, you can always submit a claim to allow you to repair or rebuild your house. Most lending companies require you to purchase enough home insurance to cover the total value of the mortgage.
However, it’s important that certain policies exclude structural damage because of specific catastrophic events like earthquakes and hurricanes. But other policies provide coverage for these risks only at an extra cost.
Personal Property Replacement
Most home insurers provide coverage for personal items, such as jewelry, that people keep at home. Whether you lose those items due to burglary or a natural disaster, you’ll get full compensation. You can either purchase coverage for the original cash value of your possessions, or for the cost of having them replaced.
Replacement value coverage is generally higher and costs a lot more. And this is mainly because the value of your claim is the same as the cost of purchasing a new item. So, if you want these benefits, find a cheaper home insurance policy.
Caters For Additional Living Expenses (ALEs)
If your house gets destroyed or damaged to an extent where you’re forced to move out, homeowners’ insurance could cover all the extra expenses. These might include hotel bills, meals, and even lost rent.
Third-Party Liability Reimbursement
If a guest gets injured at your home and decides to sue you for personal injury, you might be subject to legal liability. Homeowners insurance caters to all your legal expenses including your lawyer’s fees, court costs, as well as the cost of pay any judgment labeled against you.
The Bottom-Line
Don’t just purchase any homeowner’s insurance. Get one that suits your explicit needs. The above article will help you understand more about home insurance, what’s covered, and how to choose the best policy. Good luck!
