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Homeowners Insurance

Good Homeowners’ Insurance Coverage

Overview

Without good insurance coverage, it only takes one unfortunate, unexpected event accident to cause financial mayhem. A home is quite likely the largest purchase a person will ever make. One would be foolish not to protect such a huge purchase with the proper insurance coverage.

Homeowners insurance is specifically designed to protect your home and the possessions within it from the ramifications of accidents and events that cause loss. Usually this includes fire, theft, and accidents. And, perhaps most importantly, this type of insurance can also assist you in protecting your financial future should someone be hurt on your property and take legal action against you.

Who needs this coverage?

It really comes down to the following: If you own a home, you will need home insurance and will be likely required to obtain it by the lender with whom you have a mortgage. If you attempt to avoid buying a policy, then the lender will acquire one for you and then add it to your mortgage payments. Guess what? Banks like to safeguard their investment too.

Natural disasters protection

Usually one’s policy coverage will extend to protection for many natural disasters, but not all. Almost standard is the exception of coverage for earthquakes, floods, and hurricanes. These events will not fall under a homeowners’ policy and, therefore, one would have to obtain separate policies for these things. Be sure to ask an insurance professional about what coverage would best fit your needs and for the area in which you live.

How much coverage?

There are several insurance coverage types available, each with their own levels of protection. Usually your state will have minimums set for what the insurance provider should offer in a standard policy. Of course, your bank will have its own minimum requirements for the level of coverage you must acquire. In general, the more expensive your home and the possessions you own that lie within its walls, the more you will need to spend on premiums.

Protection for valuables

Riders (supplemental coverage) are useful for one’s more valuable items, such as priceless art, jewelry and antiques. When purchasing a home policy, your agent will likely ask about what, if any, unique or valuable items you might own that you need to protect.

Benefits

The big benefit in obtaining a proper home insurance policy is the peace of mind in knowing that your home and your possessions are all protected from loss caused by a myriad of events that are not in your control. An additional plus is the protection of personal liability that a policy affords.






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