page loader

Homeowners Insurance

Homeowners Insurance Explained


Without proper insurance coverage, it only takes one accident to make the dream of home ownership a nightmare. A home is usually the largest purchase an individual will ever make. It makes sense to want to protect such a grand purchase with the right insurance coverage.

Homeowners insurance is specifically designed to protect your home and the possessions within it from the results of unexpected events that cause loss. Usually this will include fire, theft, and accidents. And quite important is the fact that this kind of insurance can also aid in the protection of your financial solvency should someone be injured on your property and file a lawsuit against you.

Who needs this coverage?

Anyone who owns a home needs home insurance and will also likely be mandated to purchase it by the financial institution that lent the homeowner the money to buy it in the first place. If you attempt to avoid obtaining a policy, your lending institution will obtain one for you and then add it to the cost of your mortgage payments. Banks feel the need to protect their investments too.

Natural disasters

Usually your policy coverage will extend to the protection from some natural disasters, but not all. Almost universally, earthquakes, floods, and hurricanes will not be a component of a typical homeowners’ policy and people will need to obtain separate policies. Be sure to ask your insurance professional about kind of coverage for natural disasters can be best tailored to your need and your budget for the area in which you reside.

How much coverage?

The various kinds of insurance coverage are available at varying levels. Normally the state where you live will outline set minimums for what your insurance provider should give you in a policy. Your lending institution will also set minimum coverage requirements as well.  In general, the more expensive your dwelling and the more costly the possessions you have within it will be determining factors as to how much you will need to spend on premiums.

There is also the homeowner liability coverage that protects you and your family for any legal claims arising from negligence that leads to personal injury or property damage. If you are the object of a law suit, your insurance provider will provide a legal assistance to represent for gratis beyond the amount of your deductible paid and, of course, your paid premiums. Your homeowners’ insurance company will pay the judgment against you up to the level of your policy’s liability limit.

Other types of coverage are also made available by your insurer like help with lodging expenses should your home be rendered uninhabitable from the consequences of a covered event. Keep in mind that even if you now own your home completely, free from a mortgage, you would be smart to continue to carry proper homeowner’s coverage.