Homeowners Insurance

Homeowners insurance provides important protection for your home investment and helps provide protection for liabilities you may become responsible for. It is almost always a requirement for those who finance their homes. You will need to carry a policy for as long as you hold a mortgage. The insurance covers your actual home structure, as well as your personal property. It also provides protection from liability in the event of an accident or injury on your property. There’s a great deal you should know about home insurance.

What It Is

A homeowners policy can be very specific in terms of what it encompasses. It’s important to understand your particular policy to be sure you are covered for certain events. Examples of what can be included in your insurance policy include your actual dwelling and structures attached to it like plumbing, electrical and heating, as well as outside structures like fencing, sheds and detached garages. An insurance policy for your home can also reimburse you for damage done to your personal property. Things like clothing, appliances, furniture, and electronics fall under this category.  Loss of use coverage can help cover extra living expenses you incur while damage to your home is being repaired. Your homeowner’s policy will also generally cover your liability if someone is injured on your property and medical payments to take care of medical bills related to accidents on your property.

Types of Coverage

There are a number of different types of coverage you can choose for your home insurance. Each includes different things. Let’s look at some of the more common. Basic Form insurance covers theft and vandalism, as well as disasters that can cause damage to your home and its contents such as lightning, fire, hail or explosion. Broad Form goes a bit further to cover damage caused by trees or falling objects, the weight of snow or sleet, freezing or overflow to heating and plumbing and household appliances. The Special Form is the most commonly chosen because it covers your property from nearly every peril except any that are specifically excluded like earthquakes or floods.