Homeowners Insurance- What It Is And What It Covers
Our home and property are precious to all of us. If your home gets damaged there are insurance policies that help cover the damages that occurred. Homeowners insurance is property insurance that covers damage and loss of any private residence. It includes the residence along with the furnishings and assets in the home. It covers liability insurance for accidents at home or the territory which is covered. Let’s look in detail on all about Homeowners Insurance. You can check out our latest post Americanexpress.com/confirmcard
What does Homeowners Insurance mean?
It is insurance coverage that helps protect your home and personal belongings. Homeowners insurance covers interior damage, exterior damage, and other damage that occurs on the property. When a Homeowners Insurance is claimed, the insured has to pay a deductible as an out of pocket cost. A single premium is paid on all the factors covered in the policy. It may also include damage caused by the homeowner, his/her family members, and the household pets.
Cost of Homeowners Insurance
The total cost of insurance varies based on the house itself as the value and market value of houses differ. The insurance cost will also include additional cost coverage, the location you live in, etc. If the insurance policy you opted for includes additional coverages, the cost will also increase accordingly. The penalty is charged to the insured if insufficient coverage is purchased on the property.
Coverage Limits
Homeowners Insurance policy has a certain liability limit which means that there is a limit on insurance coverage if any unfortunate events take place. An average liability limit shall be set by the insurance company but the policyholder can opt for a higher liability limit. Liability limit determines the percentage of coverage on damaged or lost goods
Deductibles
Before you can take benefit of the Homeowners Insurance policy you will have to pay a certain amount of money as deductible. Deductible, similar to the coverage limit depends on the type of policy one has chosen. If any additional policies were taken, the amount of deductible will also increase
Coverage of the policy
A standard Homeowners policy includes four important coverage. They are:
Dwelling- Dwelling covers damages or repair costs of the house caused by natural events such as strong wind. The insurance amount must be sufficient to repair the house in case of damage. There are a lot of homes which are underinsured but if damage occurs it won’t be enough to rebuild the house
Other Structure- If an attached structure on the property such as a shed, fence, or garage is damaged, it is covered under Other Structures coverage
Personal Property-Personal Property coverage includes all the belongings that are inside your home such as electronic goods, furniture, clothes, etc in case they are stolen or damaged. This coverage can extend depending on the policy. For example, it can include risk coverage on pieces of jewelry, accessories, etc
Liability- If the homeowner or his family damages another person’s property or a visitor is injured liability coverage helps pay related expenses
The additional coverage includes,
Loss of Use- If your house is being repaired and it’s not in a condition that you can live in, a percentage of an insurance claim can be claimed to live somewhere else for the time being
Medical payments- If someone is hurt or injured on your property, medical payments coverage will help pay all the medical bills and expenses
There are various other coverages that may be included in the policy depending upon the insured’s requirement. For example, loss from natural disasters such as earthquakes and floods is not covered in a standard Homeowners Policy but the insured can opt for an additional policy for loss due to natural disasters. There are also special all coverage policies which includes all the losses unless it is specifically excluded in the contract
Conclusion
You need to understand the policy thoroughly and be in touch with the insurer to make sure that you are getting all the discounts you are eligible to. While claiming an insurance policy, price is not the only important factor. The insured needs to analyze the benefits and coverage of the policy
Frequently Asked Questions
What does a standard Homeowners Insurance cover?
Homeowners Insurance usually covers exterior and interior damage on house property, loss or damage of personal belongings, and injuries of a third party while on the house property
How much does Homeowners Insurance cover?
The cost of this insurance varies from one house to other depending on the location it is situated in, value of the property and additional coverages under the policy
Is there a way to lower the cost of Homeowners Insurance?
Opting for a higher deductible which is the out of pocket cost for the insured before the insurance benefits kick in. The higher the deductible, the lower will be the premium. But you should not have deductibles higher than what you can afford. For some less risky ways talk to your insurer and enquire if you are eligible for any discounts