Posted on: 11 November 2019
Homeowner's insurance is something you should always have when you own a home and there are many reasons why. Not only is it required in some instances, but it is also the best way for you to protect yourself from what could be devastating financial losses. While you likely know some of the reasons why this type of insurance is so important, you will also likely have plenty of questions about it and you'll want to keep reading in order to answer at least some of them.
When is homeowner's insurance a requirement?
If you are still paying on your mortgage, then your lender will require you to carry insurance until your home has been completely paid off. They will require this of you because they want to know that their investment is going to be covered in the case of something happening to the structure.
Are there things that won't be covered?
It's important to make sure you read all of the information with your policy and make sure you know just what is and what isn't covered, because not everything will be. However, if you want something to be covered that doesn't automatically come in your policy, then you can often pay extra for that added coverage. For example, flood damage may not be covered, but you can often cover it by having it included for a higher premium.
What things are covered by the homeowner's insurance policy?
You never want to assume you know what is going to be covered in your policy because they vary from carrier to carrier and then from state to state. However, some of the main things that are covered include the structure, your belongings, and your injuries. When you get down to the specifics, you may be interested to know that things like your vehicles are normally also covered. Many people find this surprising because they would assume that car insurance would cover the cars and the homeowner's insurance wouldn't. You need to know if you have something that is very valuable, then you want to have receipts and photos of them and have them specified on the policy just to make sure they are going to be covered. For extremely valuable items, you may need to take out their own policy for them and they will actually be excluded from the homeowner's insurance policy that you have out on your home.Share