Homeowners Insurance

What you need to know about homeowners insurance

If you own a home, you need to insure it. If you have a mortgage, your lender will require you to have insurance, but even if the home is paid off, you should carry insurance to protect your investment. Here are some of the ins and outs of insurance for your home.

What is it?
Homeowners insurance is a type of property/casualty insurance that provides coverage for your home structure as well as the contents of the home against certain named perils. Home insurance also provides you with a certain level of personal liability protection.

Who is it for?
Anyone who owns a home and lives in that home needs a homeowners policy. If you own a home but rent it out or if you rent a house owned by someone else, you need different types of policies.

How does it work?
A homeowners policy works much like other types of property insurance policies. If you incur a loss for something that you believe is covered by the policy, then you must contact your insurance company to make a claim. Once the claims are certified, your insurer will move forward with covering your damages up to the limit in the policy, minus whatever deductible you owe. Your insurer may issue you a check for the amount of loss it believes you have incurred or it may pay contractors and others directly for work restoring your home.

Different types of coverage
Most homeowners policies are the same. They cover damage from wind, hail, fire, vandalism and theft while exempting some other types of damage. Policies can differ in what they do and don’t cover, and some policies may provide riders, which offer additional coverage for other premium costs.

Major benefits
The major advantage of having home insurance is that your home is protected against fire, weather and some other types of damage. An additional benefit is the personal liability coverage that will protect you from instances such as someone getting injured in your home or on your property.