Homeowners Insurance 101
Property insurance provides security against all potential risks to real estate, including theft, fire and some natural disaster damage. This also includes many specialized types of insurance including flood insurance, fire insurance, earthquake insurance or home insurance. Depending on what type of property insurance you have purchased, the value of the policy will differ. The value of a policy will also be affected by the type of coverage provided, the age of the property and the risk of loss to the property. Here is more about how to protect your real estate from these types of risks.
Most property insurance covers damage caused by theft. Theft usually refers to breaking and entering. However, it can also include theft during a robbery or any other criminal action involving violence or any destructive act. For example, if you have an insurance policy that covers damages for flooding, then it will also cover damages caused by earthquakes.
A comprehensive type of policy covers a number of risks. It is commonly known as business protection. It usually covers legal liability and personal injury claims. It is designed to protect you against the risks that occur while conducting business on the property you own.
When you purchase a business property, you are purchasing more than just the land. You are buying a building or portion of a building. This means that you need to purchase property insurance that is specific to your needs. A general liability insurance policy, for instance, will provide coverage for property damage, bodily injury, property vandalism and advertising or branding damage to a small business property.
Another type of insurance policies is the homeowners coverage. It covers the contents of your home. A typical homeowner’s coverage includes the payment for replacement or repair of the following items: carpets, furniture, upholstery, fixtures, electronics, jewelry, antiques and other large items. Some policies also cover personal liability in the event of death or injury occurring on the premises.
The third type of insurance policy is the business income loss coverage. This provides coverage for a number of events that could negatively affect the value of your business premises. Loss of business income occurs when a vendor fails to pay or cannot make payments on the goods or services you have purchased from them. This can also include the loss of business income due to natural disasters or even the death of an employee. A business income loss will typically cover the full amount of any direct loss of revenue a business incurs during a month.
Another peril to consider is damage due to fires. Fire damage is often very severe. It can destroy a business property and its contents. For this reason, it requires a property insurance company to include fire coverage. Generally, a property insurance company will include coverage for property loss caused by fires for no more than one day on the property. If, however, a fire occurs after you have provided coverage for the day of the fire, your company will be held liable for the cost of repair for the same day.
One of the most important factors to consider when purchasing homeowners insurance is the loss of coverage limit. A homeowner’s insurance company will often only offer a specific amount of coverage for the cost of rebuilding the home, which means if you live in a damaged home you may be financially out of luck. To remedy this, inquire with your insurance agent about extending replacement costs coverage. Essentially, extended replacement costs coverage allows you to receive financial assistance to repair your home. This arrangement may work best for those who live in damaged homes that sustained very little damage.