What Does Homeowners Insurance Cover?
Aug 15th, 2010 by admin
A homeowner’s insurance package can be designed to cover many things, including full replacement value for the home and the contents. The most important thing to remember when purchasing homeowners insurance is to buy enough insurance coverage for all areas in which you cannot withstand a loss. This includes liability for accidents that may occur on the property that is insured. There are options, and it is up to the individual which options are included.
First of all, develop a good relationship with your insurance agent. They can advise you with regard to how much insurance to purchase, and what types of coverage to include, based on their experience. They are the number one resource to best explain the technicalities of each type of coverage.
Common Homeowners Insurance Coverage Areas:
1. Full or partial replacement of the home (building) at today’s prices. Bear in mind that not all “full” coverage policies will actually do this; read the small print. If you have minimum coverage, it may fall way short of what you would need.
2. Full or partial replacement of the home contents at today’s prices. Special riders can be purchased for specific equipment and valuables, such as photographic equipment, collections or jewelry.
3. Enough liability to cover accidents in the home or on the property. Slip and fall and other personal injury accidents can break your personal financial bank if coverage is inadequate.
4. Pets should be included in your homeowners insurance. Even the tamest dog will bite under the right circumstances.
5. Outbuildings may require their own insurance policy.
6. Include temporary living insurance, just in case it is needed in a disaster.
7. Natural disaster coverage should be purchased in certain geographical areas subject to wind, water or earthquake damage.
Look for discounts for security items like alarms, locks and CCTV systems. Do not include land on your insurance for most properties. Land is rarely lost. Condo owners and renters should also carry some insurance for contents, property and liability. Remember, the cheapest insurance may not be the best. Ask for explanations and advice from your insurance agent.
