Homes can be a relaxation spot, where families are raised, and where memories are made. What’s more, it’s a major investment. It is an absolute necessity to have homeowners insurance to protect your investment, in fact, most mortgage companies require it as a condition to get a home loan. Not all insurance policies are created equal. What are the best coverages to have? That depends. There are many ways that homeowners insurance protects you and your loved ones from loss, here’s how.
Home insurance for structure and property coverage
Protection of homes and the personal property that is inside is what most people think of as home insurance. Coverage of these two concerns is actually split up into a few specific sections that address different aspects of building and property coverage in detail.
Your dwelling coverage is what ensures that your home will be repaired or rebuilt if it suffers damage or total destruction from a disaster that your policy covers, such as storm, fire, lightning, wind, or hail damage.
Loss of use
What happens if your home is so damaged that you have to live somewhere else while it is fixed or rebuilt? Your homeowner’s insurance loss of use coverage pays for you to rent an apartment or live out of a hotel while your home is repaired. Other living expenses such as food are reimbursed as well.
If your property has additional structures such as a shed or a detached workshop or garage, you will need additional structure coverage. This type of building insurance covers any accessory buildings you have on your property besides your home and pays for their repair or reconstruction if they are damaged by a covered loss event.
Your computer, television, stove, and linens are all examples of personal property. If they are stolen, destroyed, or damaged, this part of your policy pays for their replacement or repair. There can be variations of coverage especially in the personal property category, so make sure to check out the details when you receive homeowners insurance quotes.
When you are preparing to get home insurance quotes, make sure you take the time to consider the cost of replacing your home so that it is fully insured. This is the cost of materials and labor to rebuild your home today, not the monetary amount that you purchased your home for or the value your county assessor placed on your home. The same process is true when figuring the value of your belongings in your home.
Check on additional coverages
Make sure that your homeowner’s insurance gives you additional coverage for full property protection. Additional property coverages can pay for credit card and identity theft charges, debris removal, fire department fees, and costs incurred when replacing damaged landscaping on your property.
Get fully endorsed
An endorsement is added protection for property such as a vacation home, or an especially valuable item you own such as a wedding ring. Another type of endorsement is replacement cost coverage, which pays the full cost of replacing property, not just what the property you own is worth. Endorsements can also guard against inflation and give expanded theft protection coverage as well as additional coverage for forgeries and credit card thefts.
Coverage for personal liability on your property
Whether you live in the home or rent it out, personal liability coverage is a necessity. Personal liability coverage for your property has two separate components; personal liability protection and medical payment coverage.
Personal liability coverage acts as your shield from any lawsuit filed against you because of something that happened on your property. If a party guest trips on some loose carpet, gets injured and decides to sue, your personal liability coverage will pay for legal representation and settlement costs.
This part of your liability insurance will pay for the treatment of any injuries sustained in your home or outside on your property if they do not sue. A good example of this is a young friend of your nine-year-old son climbs your apple tree, falls out of it, and breaks his arm. Your medical payment coverage will pay for his arm to be treated.
Both components of the liability portion of home insurance work in concert with each other and provide coverage whether or not you get sued. When choosing insurance, make sure you know what the liability coverage limits are. You may want to add more coverage to your policy for peace of mind.
Landlord insurance policies are sometimes known as dwelling damage policies and are a whole different category of liability insurance. This type of insurance does not cover the renter’s property but acts as coverage for the landlord’s liability interests.
Through all kinds of disaster
When you have homeowners insurance, your policy should protect you from losses due to theft, high winds and hail, water damage, and personal liability to name just a few types of property disasters. Make sure that your home insurance policy covers everything you expect it to so there are no surprises when it comes time to make a claim.
If you live in an area that is prone to a certain type of disaster such as flooding or earthquakes, you have the option of purchasing a special rider that will cover damages resulting from events that are not usually covered by standard insurance. You can even purchase riders for other adverse occurrences such as war or termite damage.
There are opportunities to receive discounts on your homeowner’s insurance cost if you have some common items installed around your home. If you have a security system installed in your home, you could qualify for a discount. Smoke alarms and fire extinguishers are two items that are proven to save lives and will enable you to save on insurance if you have them in your home. In addition, many companies will give you a discount when you bundle your coverages in one insurance policy.
RBS can work with you to provide you with homeowners insurance quotes from a number of companies and can help you find the coverage option that best suits you and your situation. Take advantage of our experience and skill in building a homeowners insurance policy for you by contacting us today.