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Homeowners Insurance

Good Homeowners Insurance

For most, a home purchase is the largest monetary investment they will ever make. Given this, it makes great sense that one would want to protect such an investment with quality homeowner insurance. If you own a home, you should likely consider comprehensive homeowners insurance coverage.

What is it?

Homeowners’ insurance coverage is a type of property insurance that protects not just the home but one’s personal possessions that lie within it. Additionally, a homeowner’s policy will often provide personal liability protection to safeguard one’s family from legal action arising from an individual, for instance, slipping and falling on the property.

Those Who Benefit

All who own and live in their own home can greatly benefit from a good homeowner’s insurance policy. If you pay a mortgage, you will be required by the lender to carry some level of coverage, usually via a homeowner’s policy. However, should your home be bought and paid for, you may still wish to benefit from carrying homeowner coverage.

How it Works

Homeowners insurance is easy to understand and use. Should you have an accident or other covered loss-causing event, like fire or, say, wind damage, you simply contact your insurance provider, which normally results in an adjuster paying you a visit to assess the validity of the claim and the extent of the damage. Once your claim is approved, the insurance company will pay up to the policy limit less whatever deductible you owe. If your home is uninhabitable due to the damage, your policy will often compensate you to live elsewhere during repairs or re-building. If the claim involves personal liability, the insurer will assist you in settling with the other party or provide payment to acquire for you a legal defense if needed.

Types of Policies

Homeowners’ policies are pretty standard in their make-up. Most will provide coverage for common extreme weather events, like hail, rain and wind storms, along with protection from fire and smoke damage. Keep in mind that most policies will exclude protection for damage from earthquakes and floods. (Supplemental policies can also be bought for more coverage.)
There are two distinctions to be made with the types of coverage offered. One kind of policy will pay out “actual value,” which is the actual value, given depreciation while the other, called “replacement value,” is the actual cost to replace the property presently. (This kind of coverage will often result in higher premiums as a tradeoff.) Most policies are flexible in that the policyholders can add riders or endorsements, which are extra or supplemental protections that come with extra premiums to cover that which a normal policy will likely exclude.

The Benefits

The main benefit in maintaining good home insurance is the peace of mind in knowing that you and your home are protected from financial loss. Personal liability protection is an equally powerful benefit of this type of policy.