Homeowners insurance is important because it helps protect your home and its items from unexpected disasters. It is a form of protection that helps cover the costs of repairs or replacing your belongings if something unexpected happens, such as a fire or burglary. This policy lets you know that your home and possessions are covered if something unanticipated occurs.
Homeowners insurance protects you so you can recover financially and get back on your feet if a covered event occurs. Its four main functions include:
-
Financial protection against the costs of repairing or replacing property damaged or destroyed by an event such as a fire or other natural disaster.
-
Coverage for personal liability if you or a family member causes injury or damage to another person or their property.
-
Coverage for additional living expenses should you be displaced from your home due to an insured event.
-
Financial protection against certain risks such as theft or vandalism.
Homeowners insurance is different from mortgage insurance. If you only put down less than 20 percent when you bought your home, you may need to buy mortgage insurance to help cover your lender in case you can not keep up with your loan payments. Certain federal loans may require you to buy mortgage insurance, regardless of how much you put down.
If you forget everything else in this article, just remember: Mortgage insurance protects your lender. Homeowners insurance protects you.
Am I Required to Get Homeowners Insurance?
This policy is not legally necessary, but if you have a mortgage, your lender will usually require you to get this coverage to protect your investment. Even if you don't have a mortgage, it is generally a good idea to get home insurance.
By purchasing home insurance, you are giving yourself financial protection in the event of property damage or liability issues.
Coverage of Homeowners Insurance
Dwellings and personal property are just some of the provisions in this policy.
-
Dwelling coverage protects the physical structure of your house, including the walls, floors, windows, and roof. Items that are built-in, such as furnaces, are usually included. Attached features, such as decks, garages, and porches, are typically protected.
Most homeowners insurance policies will cover damage to your house from various causes, such as wind, hail, freezing, fire, and lightning. These are the most common incidents typically covered by home insurance policies, although there may be some specific exclusions to this coverage.
-
Personal property is any item that belongs to you and is not a part of the structure of a building. This includes furniture, clothing, jewelry, electronic devices, appliances, and any other items you own that can be taken with you if you move. Your homeowners insurance will typically cover your personal property anywhere, minus your deductible, including if it is stolen outside your home.
Homeowners insurance policies typically cover damage to your belongings caused by specifically listed disasters, such as fire, wind, hail, lightning, theft, and vandalism. Other types of damage, such as normal wear and tear, are not covered by personal property coverage.
Conclusion
While homeowners insurance costs nearly $1,400 a year, it’s an investment worth having, especially if you live in communities prone to natural disasters. Note that this figure covers $250,000 in coverage, so it’s best to meet with a broker to determine the right policy for your property.
Speak to J.F. Shaw Insurance for the Perfect Policy
Our independent firm provides auto, church, contractors, and homeowners insurance in Marietta, tailored to your needs. Get a quote request by visiting our website or calling 770-427-4626 right now!