A home is one of, if not the, biggest investments you’ll make in your life. Over the years, you’ve worked hard to build the possessions you have inside it. If catastrophe struck, replacing home and possessions quickly and easily isn’t likely, unless you have homeowners insurance.
This kind of insurance protects your home, and the possessions inside it, in the event of things like natural disasters, robbery, fire, vandalism or flooding.
It also provides liability coverage in case someone is injured while on your property.
Home insurance is critical for anyone who owns their own home, condo, townhouse, apartment or mobile home. It is a huge investment and you want to protect it.
You pay a premium for the coverage, usually on a monthly or yearly basis. Your home’s appraisal price is typically used to determine how much money you’ll get for repairs or rebuilding, in the event you file such a claim. There’s often an additional amount provided for other buildings, such as detached garages, sheds, or greenhouses. You decide how much your personal possessions are worth. Your premium is based on these amounts.
If and/or when you need to file a claim, you may need to provide proof of the covered event, and possibly receipts for the items you want to replace. If not, the insurance will provide an adjustor who will determine how much the damaged, destroyed or missing items are worth. You’ll get a check for the agreed upon amount, minus any deductible you may have.
Basic home insurance coverage is dwelling, contents, and liability protections. You can, and often may have to, add on additional coverages, such as flood or earthquake insurance.
If you home is destroyed by natural disaster, homeowners insurance will help you recover more quickly. If your possessions are damaged, destroyed, or stolen, insurance can help you replace them without cutting into your budget. If someone is hurt at your home, their medical bills will be covered by liability, instead of coming out of your pocket.