Homeowners insurance is a must for any home owner. It provides protection against disaster by insuring the home itself and the belongings in the home. Homeowner insurance is usually a package policy which means that it covers both damage to the property and the property owner’s liability or legal responsibility if anyone is injured on the property. This includes any damage done by pets owned by the home owner. Most disasters are covered, but exceptions can include damage caused by floods, earthquakes and poor maintenance to the home. Flood and earthquake insurance are covered by separate policies, and maintenance problems are generally covered by the home owner himself. In other words, if your roof leaks because of hail damage your insurance will cover it. If your roof leaks because it is old and worn out, you pay for it.
A standard policy will cover the structure of the home, in that it will pay to repair or rebuild, or replace if the home is damaged or destroyed by fire or other disasters listed in the policy. Most policies also cover structures that are detached from the home but part of the homestead. This includes garages and storage buildings. It is important for the home owner to make sure that the coverage is large enough to actually cover replacement or repair of the home.
The policy will also cover personal belongings. This covers furniture, clothes and personal items if stolen or destroyed by disaster. It is recommended that the home owner conduct a personal inventory to determine if he has enough coverage to cover all items in the home if destroyed. Some companies limit the amount that can be recovered, so read your policy carefully.
Trees, shrubs and outdoor plants are also covered for fire, lightning, vandalism and theft, thought they are usually not covered for wind or disease.
The liability part of a home owner’s policy can be the most important in the protection it offers. The liability portion covers injury caused to people who may happen to be on your property when they are injured. If a guest at your home falls and breaks a leg, your home owner’s policy will cover the medical bills. However, it will not cover your medical bills if you fall. This no fault coverage doesn’t count against your liability coverage and is quite handy in case of an accident.
Usually the limits of liability potions of policies are around $100,000, and most experts recommend about $3000, 000 in coverage. An umbrella or excess liability policy is popular for those wanting more coverage. Generally between $200 and $300 will purchase up to $1 million in additional liability coverage.
One of the responsibilities of being a home owner is having adequate home owner’s coverage. In fact, mortgage companies usually require it. Finding the right policy for you means finding the right agent, one you trust. A good way to look is to ask friends and relatives whom they would recommend. A good agent is worth his weight in gold.