Understand Your Home Insurance Policy
As you know, homes are large and important investments
With a mortgage, taxes, insurance, and upkeep, a big part of your paycheck probably goes into your house. Beyond the cost, your house is probably a source of pride and security for your family.
With that in mind, it is very important to have top quality coverage. One of the first steps you should take is to understand what your house insurance covers. Homeowners insurance policies differ, but should actually provide a variety of coverage for you. Let us take a look at the different types of coverage that make up a typical policy for a home owner who resides in the house.
You should have property insurance
Of course, your home insurance coverage should protect the actual building. This is the property insurance part of a typical policy. It should cover the home and other structures on your land. This may include your fence, garage, and storage shed. They is the part of a policy that covers the buildings. This portion of the policy is what most of us think about when we shop for coverage.
Your policy should provide home liability protection
Your home insurance policy also should provide some liability protection. This helps us in case a visitor claims damage while in our home or yard. If your coworker comes over, slips on your new tile floor, and sues you for damages, your policy should provide some important protection. This may include legal help and payment for damages if he wins the suit. If something like happens to you, it will be good to have an insurer by your side.
Personal property coverage should also be part of the bundle
Do not forget your personal belongings either. They will be covered by the home contents insurance portion of your policy. If your TV, jewelry, or DVD collection is damaged or stolen, you will make a claim against the personal property portion of your policy,
It is important to note how your property is valued by your policy. If it only pays for actual value, you may have to try to replace your electronics for garage sale prices. Most of us would rather cover our property at the price we would have to pay if we went out and purchased it new, so we want our items covered at replacement value.
For example, you may have a TV which is 3 years old. If you needed to replace it, you would pay a few hundred to a few thousand dollars. But if you tried to sell it at a garage sale, you would be lucky to get $50. Make sure you understand how your home insurance policy covers personal items.
A policy that assists you with finding temporary housing is really important
This is often overlooked, but can be one of the most valuable portions of a homeowners insurance policy. It will cover living expenses if you need to move out while your home is being repaired or rebuilt after damage. Let us say, for example, several windows are broken during a storm. You may need to find a hotel room for a few days while new windows are being installed. This can be quite expensive, and relocation coverage can be very helpful.
This example was a simple and small one. Some people have to find alternate housing for a long time while the home is being rebuilt. A good insurer should step in with the funds, and sometimes even help locating other housing, so you can have a place to live until your home is repaired.
How can you find a good homeowners insurance policy?
It can be very simple to find the right home insurance policy. I suggest using an internet quote form that helps you compare multiple insurers in your area. After you have narrowed down your search, you may want to speak with local agents to make sure you understand your home insurance coverage.