There’s nothing worse than suffering property damage and having to pay out of pocket to fix it.
With home insurance, you can protect your possessions from all kinds of property related disasters, ranging from theft and fire to natural disasters like tornadoes and earthquakes.
If you have no home insurance or aren’t sure if you’re covered in case of an emergency.
Here are What You Need to Know About Home Insurance, you might be surprised by what they do (and don’t).
What is home insurance?
Home insurance is a type of insurance that provides coverage for your home and its contents.
It protects you financially in the event of unforeseen disasters, such as fire, theft, or natural disasters.
There are many different types of home insurance policies available so you need to know what your needs are before making a decision.
Your policy will specify which losses are covered by the policy, which ones aren’t covered by the policy, and which losses have a deductible on them.
Your deductible is an amount of money you must pay out-of-pocket before your insurer pays any expenses associated with your claim.
Do I need home insurance?
Home insurance protects your home and belongings in the event of a disaster. It can also protect you financially if someone gets hurt on your property.
It’s best to have coverage in place before anything happens.
There are many factors that go into deciding what type of coverage you need so it’s important that you do some research and find out which types of coverage work best for your needs and budget.
One thing that is worth mentioning is that every state has its own requirements for insuring against earthquakes, floods, tornadoes, hurricanes, or other disasters.
Some states require homeowners to carry certain levels of coverage (usually 10%-25% above their mortgage balance) while others don’t require any additional coverage.
It’s really worth doing your research so you know where you stand with your state regulations regarding insurance requirements.
How much does home insurance cost?
Home insurance typically costs between 10 and 20% of your home’s value.
What you pay depends on where you live, the kind of coverage you choose, and how much coverage you need.
Your homeowners insurance covers your personal property if it’s stolen or damaged, as well as any damage done by the weather.
For example, a typical policy will cover the cost of temporary living expenses in the event that your home is so badly damaged that it can’t be lived in.
What does home insurance cover?
Home insurance will cover your home and personal belongings against certain events such as fire, smoke, theft or vandalism.
In the event of a covered loss, your insurer will pay for things like repairs or replacement costs minus any deductible or co insurance that you owe.
Some policies include coverage for additional living expenses in the event that you are unable to live in your home while repairs are being made.
Does my mortgage company require me to have home insurance?
Most mortgage companies require you to have home insurance. You may be able to get homeowners insurance through your mortgage company and it will be cheaper than if you bought the policy on your own.
You may want to consider getting renter’s insurance, even if your home has a mortgage.
Renter’s insurance would cover any damages that happen while you are renting and living in someone else’s home.
I’m renting. Do I need renter’s insurance?
If you own your home, you will need a homeowner’s or renter’s insurance policy that covers the structure of your home and everything in it.
However, if you’re renting, you might want to consider getting a renter’s insurance policy.
This is because the landlord’s insurance policy only protects the building itself but not what’s inside.
I’m a senior citizen. Are there any discounts available to me?
If you’re a senior citizen, you may be eligible for a discounted rate on your home insurance.
Insurance companies have varying eligibility requirements for seniors but one thing is consistent: the older you are, the more likely you’ll qualify.
Some carriers will offer discounts if you take care of your house and yard and make safety improvements that decrease the risk of fire or theft.
While others will provide an additional discount if your car is fitted with anti-theft devices.
I have a home business. Does my policy cover my business equipment?
Yes, your home insurance policy will cover your business equipment.
However, if you have expensive items, you may want to consider adding a rider or endorsement for coverage for these items.
For example, an umbrella policy is an additional insurance coverage that provides protection above and beyond what is provided by the standard home owner’s policy.
An umbrella policy can also protect against lawsuits and judgements against you in excess of the limits of liability on your standard homeowner’s or renter’s policies.
I have a swimming pool. Will my policy cover it?
Having a swimming pool on your property can be risky. It is important that you know what coverage will cover it and what is excluded from the policy in order to make sure you are adequately prepared for any accident.
Home insurance is an essential part of owning a home. It protects you from the unexpected and covers damages to your house, your belongings and even injuries caused by a natural disaster.
So buying a insurance plan for your home, should be one of the best investment you can ever think of.