Home Owners Insurance – For Your Valuable Asset

Your home may be your most important asset. You need to protect it. How? With home insurance. In simple terms, home owners insurance protects your home, you, its occupants, and guests. Damage to the home and the surrounding property are included in coverage. So is injury inside the home or on the surrounding property. Your furniture, appliances, clothing, and electronics, all of the stuff inside of your home, is covered. A home owner’s policy is a term contract. This is a contact that is in operation for a fixed amount of time. Policy options may include full pay, monthly pay, and escrow pay.

A typical home insurance policy has coverage for what it would take to replace the house, and its contents in case of total destruction. So, if the house is appraised at $80,000, the policy would be for at least that amount, and a little more to cover possessions.

Disasters normally covered are fire, smoke, windstorms, hail, lightening strike, ice, sleet, snow, vandalism, theft, and malicious mischief. Occurring less often, but still covered, is damage from vehicles or aircraft, riot or civil commotion, glass breakage, and volcanic eruption. Earthquake, flood, and pest insurance have to be purchased separately.

Plumbing accidents, identity theft, possessions, medical payments, replacement costs, and personal liability may also be included in coverage. There are normally 5 classifications of coverage in a home owner’s policy. A-Dwelling, covers the value of dwelling, but not the land. It is usually insured at 80% of the home’s value. B-Other Structures, such as sheds, garages, or gazebos, around the house, on the property. C-Personal Property, for theft and loss. D- Loss of Use/Additional Living Expenses. E-Additional Coverages, reasonable repairs and damage to trees and landscaping. Lastly are Exclusions to the policy, or things not covered.

If you are not a home owner, renters insurance covers you and your personal property inside of your apartment or house rental. When you are absent, electronics, furniture, clothes, and sports equipment are protected. Your landlord should have insurance that covers the building, or dwelling you live in. However, that insurance won’t cover you or your belongings. In case of a robbery, fire, injury to you or your guest, and possessions, you need renters insurance. Rental insurance even covers dorm rooms. Each state is different, but typically you will receive compensation for damages in actual cash value, or replacement cost. As for coverage and deductibles, choose what you can afford. Then, inventory and list your items.