Your Guide To Homeowners' Insurance
If you own a home, you need to have a robust homeowners' insurance policy to protect your investment. Finding the right policy, however, may seem overwhelming. If you would like to know more about homeowners' insurance, keep reading.
What Does Homeowners' Insurance Usually Cover?
Homeowners' insurance usually covers damage caused by common natural disasters like fire, windstorms, hail, etc. Naturally, homeowners' insurance won't cover damage you purposely caused, but it will cover damage from vandalism. Damages and losses related to theft are also typically covered.
On top of that, a policy protects you in the event of a personal injury lawsuit. If someone is injured on your property due to negligence, they can sue for medical bills, lost wages, etc., but if you have homeowners' insurance, the insurance company will cover the settlement and the court costs.
Homeowners' insurance does not cover damage related to poor maintenance or lack of maintenance. In addition, the insurance carrier takes into consideration the condition before the damage. For example, if your roof was damaged in a windstorm, but it was in terrible condition, you may get less money to replace it.
What Types of Policies Exist?
Overall, you'll choose an all-risk or named-peril policy. Both offer great protection, but they may cover different types of disasters. All-risk policies are usually more expensive because they tend to cover more types of damage. If you have an all-risk policy, everything is covered unless it is included in the exclusions section.
Named-peril policies are a cheaper alternative, but they may not provide as much coverage. With named-peril policies, everything covered is listed. If a disaster/event is not included in the policy, it's not covered by the insurance.
Can You Add Additional Coverage?
If your policy doesn't include everything you want, you may be able to add a rider. Some common riders include:
- Jewelry rider
- Water back-up
- Building code coverage
- Expensive items rider
If you have expensive items or jewelry, your basic policy may not provide enough coverage to fully replace the item, but a rider increases the maximum payout.
In most cases, flood/water damage is rarely covered. However, if you live in a registered national flood zone, you may be able to purchase flood insurance.
Owning a home can be a rewarding investment, but like any investment, you should protect it. Homeowners' insurance better protects your home and your finances in the event of disasters, theft, or personal injury lawsuits.
Contact a professional to learn more about homeowners' insurance.
