Homeowners insurance is a form of property insurance that covers losses and damages to an individual’s residence, along with furnishings and other assets in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property. The policy usually covers interior damage, exterior damage, loss or damage of personal assets, and injury that arises while on the property.
Every homeowners insurance policy has a liability limit, which determines the amount of coverage the insured has should an unfortunate incident occur.
Homeowners insurance should not be confused with a home warranty or with mortgage insurance.
02.
Why do you need homeowners insurance?
Since properties are one of the largest investments for most people, main purpose of the homeowners insurance is to protect this asset from unanticipated events. Damages to a property can be a large sum which usually places a heavy burden on most individuals and families. A homeowners insurance serve to allow affordable scheduled payments in the event damages occur to the property.
Lenders require borrowers to have a homeowners insurance to get a mortgage until your loan is paid off.
Medical and legal liabilities can also be a great expense if someone is injured in your home. Homeowners insurance provides coverage to help pay these expenses.
If you are a victim of theft and/or vandalism, homeowner insurance can reimburse you for losses.
What is the difference between Homeowners Insurance vs Home Warranty?
Homeowners insurance typically protects your home from events like fire, smoke, theft, fallen trees, or damages caused by weather or a natural disaster.
A home warranty plan protects your budget when covered appliances and home system components break down due to normal wear and tear.
Home insurance covers damage and loss of property, while home warranties cover the failure of mechanical systems and appliances.
Home insurance provides the homeowner with general liability insurance while home warranty does not.
Home warranties are optional coverages while home insurance is required by all mortgage lenders
Home warranties only cover items, parts, and situations that are listed in the contract, while a homeowners insurance policy offers broad coverage with specific exclusions.
04.
What are some of the things to consider when discussing with your agent regarding your
needs?
How much coverage do you need? How much will it cost to rebuild my house and replace my personal belongings if they are damaged or destroyed?
What discounts are available for me? (ask about multiple policies, security system, fire resistance discounts)
Does the insurance company have a good reputation for customer service? Is it known for paying claims fairly and promptly?
What’s the process for filing and settling a claim? (who to call and what happens after you file a claim?)
To determine the ideal types of homeowner insurance for your needs, contact us today to schedule a
time to review your situation to find the right coverage.
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