For most people, the buying of a home is probably the biggest investment they will ever make. Home Insurance or Home Owners Insurance is a form of coverage that protects your biggest and most emotionally charged purchase. You are specifically protected from damages to your home and its property. The policy covers you in the event of any number of possible disasters that may directly or indirectly affect your home. This form of insurance covers your home, any attached buildings or other kinds of structures that sit on your property. Coverage can also be purchased that provides protection for your personal property in the event of theft and also can provide personal liability coverage for accidents or injuries that can happen on your property.
Homeowner insurance is a must-have for anybody who is the owner a single-family home, condo or townhome. Most policies usually cover the items within the home, any loss of use of your home due to some event, and they also provide liability protection for any kind of an accident that happens within the home. The normal premium for such policies also includes property damage coverage as well as liability. It is important to keep in mind that many mortgage companies offer mortgages with the requirement that your home and property is covered by this insurance.
Homeowner's insurance offers three basic types of coverage. They are categorized as "HO-1","HO-2" and "HO-3". The HO-1 and HO-2 classes of coverage have lower costs as these types specifically cover only the property itself. HO-3 is an insurance offering that also provides protection for belongings and for liability. The HO-3 coverage will often also provide a "loss of use" benefit if the home is not livable due to damage sustained from a covered event. Another option that an HO-3 policy affords is to have the full compensation for the homes replacement as opposed to just the cost value.
Like other insurance, the first step in the aftermath of some sort of covered loss is to file a claim. The insurance company then sends out a claims adjuster to confirm your claimed extent and value of the loss. It is enormously helpful that the homeowner take photos of his or her property and belongings prior to any possible event. This makes the process of filing a claim many times smoother.
Home insurance provides a homeowner the peace of mind in knowing he or she is protected from many potential damages that can happen over time. If you are in the market for a new home, it is again important to remember that insurance is necessary in order for lenders to approve your loan! Call your agent today for more information. And remember as a current homeowner, it is always helpful to periodically review your existing coverage too.