Why Homeowners Insurance Is Important To You?
If you own a home and pay a mortgage, then you know that homeowners insurance is essential. Homeowners insurance provides a financial safety net if every your home should encounter damage, you lose valuable possessions, or if you are the subject of a lawsuit due to injury that occurred on your property.
A homeowner’s insurance policy covers these important parts of your home:
- The replacement value of your home possessions due to destruction or theft.
- The replacement value of your home should it be destroyed by fire or some other hazard.
- Liability coverage for accidents that may happen to others on your property.
Your Personal Possessions
In case of loss due to fire or theft the insurance company will replace the cash value of your possessions. If you ever make a claim on your homeowner’s insurance policy it will most likely be for loss due to stolen property.
It is important to keep a complete home inventory of all your important and valuable possessions. Inventories can be in simple written form, photographs, or even a short documentary on video.
Some additionally valuable possessions, such as fine jewelry, expensive electronics, or furs, may require additional insurance. Talk with your home insurer to make sure you have the proper coverage for all your valuable belongings.
Hazard Insurance
If your home were ever destroyed, what would you do? Homeowners insurance can give you some peace of mind that should your home be destroyed it will be rebuilt or repaired.
Fire damage is the most common hazard faced by homes. Other severe types of hazards may be excluded and require an additional rider to include coverage in case of loss such as:
- Flood damage
- Earthquake damage
- “Acts of God”, which may include hail, wind, or mudslide damage
Check your policy for these types of exclusions. Also check your home location to see if you live in an area that may be prone to floods, earthquakes, mudslides, or other types of excluded coverages. If you have a mortgage, it is likely the mortgage company will require flood insurance in high-risk areas. But even if your home is in a low-risk area doesn’t mean there is no risk. You can always choose to include earthquake or flood if you feel it is important.
Liability
Your homeowner’s policy includes a provision for liability coverage. This protects you in case someone is injured on your property and you are liable for damages and suffering.
You can prevent a liability action by keeping your property safe from hazards. These are just a few examples:
- All stairways should have handrails
- Sidewalks should be free from leaves and snow
- Remove items in your walkway that may cause trips
- Keep pets inside or fenced in the yard
Protecting your most valuable asset, your home, is a high priority. Shop around with different insurance companies that offer homeowners insurance. Get quotes and choose the best deal.
Just get a free home insurance quote
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