What You Need to Know About Homeowners Insurance

Posted by Crystal Olenbush on Friday, February 6th, 2009 at 5:32pm.

It is essential to have homeowner’s insurance in place when you purchase a home.  If you are borrowing money in order to purchase the home, the lending institution will require you to purchase homeowner insurance before the transaction can be completed.  This is because the lending institution wants to make sure its investment is protected if the house were to be damaged or destroyed.  Even if you are no longer carrying a loan on your home, however, it is a good idea to have insurance in place.  After all, a home is a major investment and will cost thousands of dollars to replace if disaster strikes.

What Does Home Owner’s Insurance Cover?

The items that are covered by your homeowner’s insurance will be specified within your policy.  In general, homeowner’s insurance policies will pay for damage that occurs as the result of all disasters except those caused by earthquakes, floods, or failure to properly maintain the home.  If you live in an area that is prone to flooding or earthquakes, however, you can purchase additional protection that will pay for this type of damage as well.  Of course, you will have to pay more for your insurance premiums when you add on this coverage, but it will be worth it in order to keep your home protected.

In addition to protecting your home, homeowner’s insurance protects you as well.  For example, if someone is injured while on your property or if their property is damaged while at your home, your homeowner’s insurance will help pay for those expenses.

Finding the Right Coverage

When you search for homeowner’s insurance, it is important to do comparison shopping.  Therefore, you should begin your search as early as possible.  In this way, you can get quotes from a variety of insurance agencies and you can determine which one is best for you.

There are a number of factors that will be considered when determining the cost of your insurance premiums.  Some of these factors include:

•    The location of the home
•    The age of the home
•    How much money would be needed to replace the home
•    Whether or not the home has modern electrical systems and heating systems in place
•    Whether or not security systems, smoke detectors, or dead-bolts are in the home

While homeowner’s insurance does cover the cost of replacing the belongings inside your home, you might need to get extra coverage for certain items such as jewelry, fine art, coins, or furs.

2 Responses to "What You Need to Know About Homeowners Insurance"

Elenora wrote: I appreciate the concern which is been rose. The things need to be sorted out because it is about the individual but it can be with everyone.

Posted on Tuesday, May 19th, 2009 at 2:50pm.

Jim Rosenfield wrote: Its so true when it comes to itemizing your personal belongings. You may have a difficult time proving your case if you don't provide photos, itemized list and receipts. I've heard horror stories of huge losses and only a portion was covered by insurance.

Posted on Wednesday, September 28th, 2011 at 10:49am.

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