Homeowners insurance is a form of property insurance designed to protect an individual's home against damages to the house itself, or to possessions in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property.
While homeowners insurance covers most scenarios where loss could occur, some events are typically excluded from policies, namely: earthquakes, floods or other "acts of God" and acts of war.
For people who live in certain parts of the country, adding an extra policy for earthquake insurance or flood insurance can be a good idea to offer further home protection and peace of mind. Some homeowners insurance is designed for renters, typically HO-4 or "renters insurance", and only covers possessions within the home and isolated events not covered in the property insurance held by the owner.
In the U.S. there are seven forms of homeowners insurance that have become standardized in the industry; they range in name from HO-1 through HO-8 and offer various levels of protection depending on the needs of the homeowner.
Homeowners' insurance isn't a luxury, it's a necessity. In fact, most mortgage companies won't make a loan or finance a residential real estate transaction unless the buyer provides proof of coverage for the full or fair value of the property (most of the time this is the purchase price). In this article, we'll show you some simple actions you can take to make sure your homeowners' insurance is sufficient for your needs.
For background reading, check out Exploring Advanced Insurance Contract Fundamentals and Fifteen Insurance Policies You Don't Need.
Homeowners' insurance can be very expensive. Those that live in high-risk areas such as close to major waterways, known earthquake fault lines or other high claims areas will pay the most for coverage. In fact, those in high-risk areas are often forced to pay annual premiums in the many thousands of dollars. But even homeowners in relatively sedate, suburban neighborhoods (with property values around the national average of $210,000) could pay between $500 and $1,000 a year for a basic policy.
Homeowners' insurance can be very expensive. Those that live in high-risk areas such as close to major waterways, known earthquake fault lines or other high claims areas will pay the most for coverage. In fact, those in high-risk areas are often forced to pay annual premiums in the many thousands of dollars. But even homeowners in relatively sedate, suburban neighborhoods (with property values around the national average of $210,000) could pay between $500 and $1,000 a year for a basic policy.
Insurance that protects a property owner against damage caused by fires, severe storms, earthquakes or other natural events. As long as the specific event is covered within the policy, the property owner will receive compensation to cover the cost of any damage incurred. Typically, the property owner will be required to pay for a year's worth ofpremiums at the time of closing, but this will depend on the exact details of the policy.
Your home provides your family with shelter from the storms. It provides a safe, comfortable, stable place for your family to return to after work or school is over for the day. You spent time searching for a home that would meet your family's needs, and put effort into making the money it costs to purchase it. The last thing you want to have happen is for something, or someone, to severely damage the home that your family lives in. Homeowners insurance is what you need to help protect the investment that protects your family.
Homeowners insurance can give you some financial protection in case your home is damaged. If your home is burglarized, it is your homeowners insurance that will step in to replace the items that were taken. Homeowners insurance can also give you help if someone becomes injured at your home, or on your property.
The property protection part of your homeowners insurance covers can be broken into four parts. It covers your dwelling, other structures, personal property, and loss of use. Your dwelling consists of the house itself, as well as any built in appliances that are inside it. Those appliances might include a dishwasher, oven, washer and dryer, or even your refrigerator. It also covers the plumbing that runs through your home, and the electrical wiring that helps power everything inside your home. Property protection also covers your heating and air conditioning units. If your home has an attached deck, or porch, that is covered under the property protection part of your homeowners insurance as well.
Your home provides your family with shelter from the storms. It provides a safe, comfortable, stable place for your family to return to after work or school is over for the day. You spent time searching for a home that would meet your family's needs, and put effort into making the money it costs to purchase it. The last thing you want to have happen is for something, or someone, to severely damage the home that your family lives in. Homeowners insurance is what you need to help protect the investment that protects your family.
Homeowners insurance can give you some financial protection in case your home is damaged. If your home is burglarized, it is your homeowners insurance that will step in to replace the items that were taken. Homeowners insurance can also give you help if someone becomes injured at your home, or on your property.
The property protection part of your homeowners insurance covers can be broken into four parts. It covers your dwelling, other structures, personal property, and loss of use. Your dwelling consists of the house itself, as well as any built in appliances that are inside it. Those appliances might include a dishwasher, oven, washer and dryer, or even your refrigerator. It also covers the plumbing that runs through your home, and the electrical wiring that helps power everything inside your home. Property protection also covers your heating and air conditioning units. If your home has an attached deck, or porch, that is covered under the property protection part of your homeowners insurance as well.
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