| |
Homeowners Insurance
By Robert Lawrence
What is Homeowners Insurance?
Homeowners Insurance provides you with the coverage in case of a disaster. In the event of a disaster your homeowners insurance will provide you with financial protection. A homeowners insurance policy insures the home in which you live along with the possessions you keep in it.
Home Insurance is a Package Policy
Homeowners insurance is purchased in a package policy. A package policy means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or a member of your household cause to other people. Homeowners insurance also covers damage caused by household pets.
A homeowner's insurance policy covers most disasters, however there are some exceptions such as floods, earthquakes and poor maintenance (Also known as wear and tear). If you want coverage for floods or earthquakes, you will have to purchase separate policies. However, maintenance related problems are the homeowner's responsibility to take care of. In fact, keeping up with the maintenance of your home will help to reduce the likelihood of a loss in the future. A good example of this is the replacement of a roof that is showing signs of wear.
Overall it is very important to have homeowners insurance coverage that suits your specific needs. You never know when a loss is going to occur and you are going to need the money to fix it. Take Hurricane Katrina for example; there were many of people that were without homes because they didn't have flood insurance. That is why it is very important that you get the proper coverage.
Remember that standard homeowner's policies do not cover flooding so you will have to purchase that separate through your homeowner's insurance agent. Discuss all of the possible exposures with your agent, broker, or insurance company.
Replacement Cost
Replacement cost coverage is available for the structure of your home; This allows you to repair the home to the state that it was before the damage took place. Actual cash value coverage is replacement cost less depreciation. The older your possessions are, the less you will recover from the homeowners insurance company.
Renters Insurance
Not only is insurance coverage available for homeowners it is also available for the people who rent apartments or houses. If you rent a house and you have a renters insurance policy, you will be covered in the event of a loss. The coverage for a renter is relatively inexpensive and will cover your property, your liability, and loss of use of the home due to a covered loss.
Coverage Types
The standard homeowner's insurance policy includes four different types of coverage.
1)The coverage for the structure of your home is offered by the homeowner's insurance company. This means that they will repair or rebuild your home in the event of a covered loss.
2)The coverage for your personal belongings that you have in your home is also covered by the homeowner's insurance company. This means in the event of a claim that is covered by your insurance policy, your personal belongings will be able to be replaced. Note: It is a good idea to carry replacement cost coverage for your contents. This way, your items are not depreciated if there is a loss. With replacement cost coverage, your property can be replaced with items of like kind and quality.
3)Liability protection covers you in case of a law suit against bodily injury or property damage that you are your family members caused to another party.
4)Additional living expenses if you are temporarily unable to live in your home because of an insured disaster.
There can be more to a home insurance policy and there are limitations for certain types of property. It is best to discuss these options with a representative at the time your are applying for coverage.
About the Author
Robert co-founded Insurance4USA.com, an insurance quote shopping service, in 1999. He has been a licensed insurance agent in New York State since 1990.
Article Source: http://www.simplysearch4it.com/article/28692.html
| If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/28692.html" as shown above and make it hyperlinked. |
| Some other articles by Robert Lawrence | Disability Coverage Information
In federal law, disability is an impairment, either physical or mental, that substantially inhibits a person in a major way. As such, a disabled person is not necessarily born ...
Medicare Supplement Quotes
Medicare is a well-known term for American employees. It is a health insurance program administered by the government. It is an insurance program intended for those who are over the age ...
Group Health Insurance
To discuss the terminology Group Health Insurance, we must first familiarize ourselves with the concepts Insurance and Health Insurance.
Insurance is a kind of protection, a safety net against ...
Viatical Settlement - A win-win situation for most!
Viaticum is the Eucharist given to a person on the verge of death, or to one who is facing a possibility of death. It is ...
Long Term Care Insurance Policy
Most young people ignore the fact that they will grow old one day. It is the wise ones who not only think about it but also provide for their future. Statistics show us that ...
Viatical Quotes
The word 'viatical' originates from the word 'viaticum' which was part of the last rites performed on a dying Catholic in order to prepare him for his destiny. History shows us ...
|
|
| |
|
|
|
