What is homeowners insurance and how does it protect homeowners?
Homeowners insurance is, basically, a financial protection plan offered to property owners that help protect properties by paying a certain amount of money for damages, theft, or bodily harm that took place on the premises. Any of these mishaps can be due to a number of suspected or unexpected, events taking place, such as:
- Fire (shorted electrical wiring, explosion, gas leak, and more)
- Weather (Hurricane, Tornado, or another storm)
- Disaster (landslide, earthquake, avalanche, sinkhole, etc.)
- Accident (vehicle crashes into the property, and more)
- People contributed (human error, negligence, or terrorist attack)
Why homeowners should invest in a good homeowners insurance policy
Having homeowners insurance not only helps ease your mind that your assets are protected, but can also save you a lot of money in many ways. One way it helps is by contributing a large sum of money to replace or repair your assets should they be lost, stolen, or damaged. Another way it helps you save is by preventing your mortgage lender from having to provide insurance at very high rates.
You may not be required by law to have property insurance, but most mortgage lenders require that you have it. Therefore, if your insurance lapses, your mortgage lender is likely to step in and insure your home at your expense for a high cost. Moreover, the insurance policy may not even cover the most important assets of your home.
What does homeowners insurance cover?>
Depending on the specific policy, insurance plans may cover any of the following:
Dwellings and Structural Damages: This includes damages done to your house and its structures, such as a garage or attached barn, fences, sheds, and in-laws.
House Fixtures: including electrical wiring, plumbing, and heating or cooling systems.
Personal Property: Reimburses you for the amount your possessions are valued at, including electronics, furniture, appliances, jewelry, and clothing that was lost or damaged (in some cases, your valuables don't even have to be on your property).
Loss of Use: This helps pay for additional living expenses should your home be uninhabitable while undergoing repairs.
Personal Liability: Covers you financially, if you get sued or found legally responsible for another person's injury or damage to someone else's property.
Medical Payments: Pays the medical bills for injuries that took place on your property.
Don't risk losing your valuables, be smart and invest in homeowners' insurance.