Copyright: baranq / ShutterstockWhy do you need home insurance, and what does it do for you? For some people, they dismiss the fact that it is a necessity. However, considering the benefits you reap from it, you need to think carefully about getting this type of insurance for your peace of mind. After all, it provides you security from potential issues that may come along regarding your property whether it is loss or damage.
The following are some details on what home insurance covers:
Standard Policies and loss coverage
With a basic policy for your home insurance, there are various situations that are covered including hail, lightning, vandalism, theft, fire, lightning and windstorms, although there are some exceptions. These are significant issues that every homeowner should think about since these could lead to property loss or serious damages.
While the list may seem rather comprehensive, you may notice that earthquakes and floods are not included in these items. Hence, it you are looking to obtain even greater protection, then you should consider buying supplemental insurance that offers protection from these disasters. For instance, the National Flood Insurance Program by FEMA provides fire insurance that you may purchase directly from them. Your insurer can also give additional coverage for earthquake, which can be included to your current policy.
Costs to Expect for Coverage
The total cost largely depends on the policy you have, as well as the amount you have insured your property. Here are some of the costs to consider:
- Dwelling Coverage
This involves the amount it will require for you to rebuild your property or have it repaired in case you have experienced damages from natural disasters. Furthermore, the cost of coverage depends on the average repair expenses in the area where you are, as well as the market.
- Additional Structures
Do you have a shed, detached garage or other areas in your home that are separate structures from your dwelling? Then, these may also be included to your policy. Just make it a point to look into your policy or inquire from your insurance agent to determine items that are covered.
- Personal Property
Your insurance policy may cover anything you own, yet this is an optional feature. Thus, you will need to select carefully, and pay for the additional items that you want to be listed along in your policy. Just remember that there is possibly a cap on the amount to be paid for replacement. Supplementary insurance or jewelry rider can also suffice in case you opt for full replacement value for luxury items you have.
- Liability
Keep in mind that the whole issue is not merely about your property. Homeowner’s insurance can also offer security for your assets in case there is a situation that you have caused property damage or injury to someone else. This type of insurance can also provide coverage for cost of defending yourself when there is a lawsuit filed against you.
By understanding what home insurance covers, you will be guided carefully in choosing the policy that addresses your needs and budget.
