Homeowners Insurance

A family home is often a person’s biggest investment. There are numerous ways that a home might be damaged. That is why it is important for all homeowners to have a homeowners insurance policy in place to protect against hazards.

Home insurance is a type of insurance that covers three basic types of situations. If your home is damaged by a storm, water from a leaking pipe or through an act of vandalism, your insurance policy would assist in covering the loss.

Another coverage offered through this type of insurance is protection for the contents of your home both on and off premises. Many people don’t realize that it is coverage through a home policy that compensates for items stolen out of a vehicle or personal items stolen at another location.

Home insurance also protects the insured against various forms of liability. For instance, if a visitor to your home falls and is injured, your insurance policy may provide coverage for you if you are determined to be at fault. Home policies also provide liability protection if your pet bites and injuries another person.

There are at least two basic types of coverage available on the homeowner’s market. Some policies only cover the actual cash value of damages or items lost or stolen. This means that you will only receive payment based on what the item was worth at the time of loss.

Another type of policy is a replacement cost policy. This type of policy allows the insured to receive the same or similar item if lost or stolen. It provides coverage to pay for what an item would cost to actually replace.

Homeowners insurance policies all come with a deductible that you will choose depending on how much you want to pay out of pocket in the event of a loss. As a general rule, the higher the deductible, the lower the premium paid.

If financially possible, all homeowners should purchase a home policy to protect against the many potential causes of loss a home may face over its lifetime.