Homeowners Insurance is Similar to Auto Insurance – There Are Differences
Home insurance, more commonly known as homeowners insurance, is an essential form of property protection that typically covers only a home. The contents of your home are usually covered by renter’s insurance. If you live in an apartment building or condominium association, which is sometimes owned by the association, it’s also possible to find separate homeowners insurance policies. But for the purposes of this article, we’ll be discussing the coverage of your homeowner’s insurance policy and nothing else.
Many people incorrectly assume that all damage coverage on their policy forms will be transferred to their home. This is not the case. In fact, standard homeowners insurance policies typically only cover damage that you cause to your home. Anything other than this is typically covered by renters or renter’s insurance or another similar type of policy. For example, if you damage a window with a hammer and break it, this probably won’t be covered by a standard homeowners policy.
Another common mistake made by homeowners is assuming that all damage and loss coverage are limited to rebuilding cost. Most standard homeowner policies do not restrict coverage for the replacement cost of your dwelling. Landscaping is generally covered in this area, but you should check with your insurance agent to make sure. Usually, it’s only a matter of filing a claim and paying the deductible before your insurance kicks in to foot the bill. Any money beyond this that you receive will be applied to the cost of repairing the home.
Other typical mistakes made by homeowners include assuming that everything inside the home is covered under one policy. Unfortunately, while there are many homeowner policies available, not all of them cover everything. One of the most popular homeowner policies is the personal property clause. Here, the policy will cover things like furniture, clothing, appliances, jewelry, antiques, and other items inside your house and even your RV if it is properly insured. So, if your home floods and you have expensive antiques inside, you won’t be out much money. If your house is destroyed, however, you will be faced with many expenses from replacing your personal property and receiving compensation for your damaged belongings.
When you are shopping for a home insurance policy, you may also encounter policies that contain what’s referred to as personal liability coverage. This essentially means that if you injure somebody in your house, the insurance company will pay a portion of any medical bills you receive. Unfortunately, this type of coverage typically only covers perils that occur within your house, which means that if you injure somebody outside the home, you typically won’t be covered perils. If you have to pay your own medical bills or you need to repair the property damage, you’ll be responsible for those expenses.
Contents coverage policies are offered by most insurers and are a way to protect your most valuable possessions from the risk of fire, flood, smoke damage, theft, vandalism or a variety of other problems. The insurer will replace your items if they are lost or stolen. You can usually select items to be covered perishable, non-perishable, both new and old, or unique items. Items covered by these policies generally come under the name of general insurance or homeowners insurance.
Homeowner policies are typically simple to comprehend and you should not have any major problems with them. All you have to do is follow the instruction that comes with your policy and you should be fine. In addition to the standard forms, some insurance companies offer online homeowner guides that walk you through the process of filling out the necessary forms. You can also contact various insurance companies directly by phone or e-mail to request copies of policy forms. You should keep all of these forms in a safe place so that you can easily access them whenever you need them.
You can get quotes for homeowners insurance on the Internet, in your local phone book, or by contacting an insurance broker. You can usually compare prices without needing to meet with an insurer face to face. Finding a low-cost plan that offers comprehensive coverage is essential if you want to protect your most valuable investment – your home. You should research your options thoroughly and choose a plan that will cover everything you need in the event of a disaster or other problem.